Velo3D has received purchase orders totalling 27 million USD since mid-December 2023, according to the company's latest press announcement.
These orders include the purchase of two Sapphire XC systems by Mears Machine, a global contract manufacturer who will use the machines to support the supply of parts for defence and aerospace initiatives.
The total figure for purchase orders since mid-December is up from the 12 million USD Velo3D reported in January, when CEO Brad Kreger began to hold conversations with trade media about the future of the company. Velo3D has more than doubled the amount of purchase orders received since then, ending the first quarter of 2024 with bookings of 17 million USD. There is also a backlog for 23 million USD worth of purchase orders, according to the company, with system deliveries for this batch set to start in the second quarter of 2024.
Velo3D's transparency around the rate at which it is securing purchase orders follows an NYSE noncompliance notice in December 2023, distributed after its share value remained below 1 USD for 30 consecutive trading days. The company's share value is currently at 0.46 USD, with Velo3D still having three months to regain compliance.
“These new orders reflect continued customer confidence in our technology and reinforces the success of our new go to market strategy, especially in the defence and space industries,” commented Kreger. “We are also very encouraged to see that our renewed focus on system reliability and customer success is yielding results as more than 50% of these orders are from existing customers. We are also pleased to welcome Mears Machine as a customer as they look to utilise our industry-leading capabilities to accelerate metal AM deployment in the aerospace and defense industries.
“Finally, I would like to reiterate that our strong bookings reflect the value of our technology, given its ability to accelerate innovation for customers, meaningfully improve lead time for mission-critical parts, and streamline the process of scaling to volume production when compared to conventional metal 3D printers.”
Read more: Interim CEO Brad Kreger on the potential sale of Velo3D
The company also provided preliminary company estimates for the first quarter of 2024, based on the information and data currently available:
- For the first quarter ended March 31,2024, the company expects revenue in the range of 6 million USD to 11 million USD as a significant majority of first quarter bookings occurred later in the quarter. The company expects to start shipping these orders in the early part of the second quarter of 2024.
- Gross margin (the company's gross profit as a percentage of revenue) for the first quarter will be in the range of (25) percent to 10 percent. Velo3D remains committed to achieving approximately 30 percent gross margin in the fourth quarter of 2024.
- Operating expenses, excluding one-time charges and stock-based compensation expense, will be in the range of $13 million to $18 million.
Velo3D has also stated it has not completed the preparation of its condensed consolidated financial statements as of and for the three months ending March 31, 2024. The preliminary, unaudited results presented in its press release as of and for the first quarter ending March 31, 2024 are based on current expectations and are subject to adjustment, as the company completes the preparation of its condensed consolidated financial statements for the three months ending March 31, 2024. It also states that these preliminary, unaudited results are not a comprehensive statement of the company’s financial results for these periods and should not be viewed as a substitute for financial statements prepared in accordance with generally accepted accounting principles - the actual results may differ materially from those disclosed in its latest press release.
