ExOne Co. moves solidify authority under CEO

ExOne Co. said on Friday that its president and chief operating officer was demoted, and CEO S. Kent Rockwell has taken more-direct control of the North Huntingdon-based provider of 3-D printing machines and products for industrial customers.

David J. Burns, formerly president and COO, was reassigned as global head of sales effective Thursday and will retire in the coming year, the company said.

The action was one of several management changes that solidified control of the company's operations under Chairman and CEO Rockwell and expanded duties to other managers. Managers who reported to Burns now report to Rockwell.

The changes follow disappointing financial results this year that showed lower revenue and wider net losses as the company continued to invest in its 3-D printers and expansion of its printed products business.

The third-quarter net loss was $4.5 million, or 31 cents a share, compared with a loss of $224,000, or 2 cents a share, a year ago. Revenue fell 17 percent to $9.45 million versus $11.6 million last year. The company reduced its forecast for 2014 revenue to between $45 million and $50 million, down from a previous forecast of $55 million to $60 million.

In an interview, Rockwell said Burns had been filling a dual role, as president and chief operating officer and global head of sales. “Sales was an open position, reporting to Burns. He was filling two rolls,” Rockwell said. Much of Burns' career experience had been in sales positions, Rockwell added.

In the past six months, Rockwell said he had worked more closely with Burns, and was spending more time at ExOne after devoting time to other business interests.

“Any time you go from chief operating officer to a lesser role, it's not a promotion,” Rockwell said. “In this case, Dave has goals for himself. This was an agreement on how he can fulfill his personal goals and still contribute. We're happy Dave is still working with us and taking on the job he did.”

The position of president and chief operating officer will be filled at some point. “We are experiencing a high growth rate, so going to have to have new talent come in,” Rockwell said. “There's no rush now, but it's clear as we grow we'll need other senior managers as well. We are taking our time and managing the business in a methodical fashion.”

Even so, sales on a quarter-to-quarter basis have been variable, Rockwell said. Sales of 3-D printing machines declined in the third quarter because of economic sanctions imposed on Russia, which deferred purchase of several machines, he said.

Part of ExOne's expansion strategy is to make parts for customers in large quantities for industrial customers. ExOne's other production centers are in North Huntingdon; Troy, Mich.; Houston; Auburn, Wash.; Las Vegas; Augsburg, Germany; Italy; and Japan.

“We are constantly focused on increasing sales,” he said. “We have several new machines that are coming into our portfolio, and we've added six sales people in the past year.”

In a statement, Burns said, “I look forward to focusing my efforts on supporting our global sales needs and am confident that our global operations team can cover the regions under their responsibility as I move into this new role.”

ExOne said JoEllen Lyons Dillon added the title executive vice president to her roles as chief legal officer and corporate secretary. In her new role, Dillon will assist Rockwell with global initiatives and be responsible for human resources. And Tim Pierce, ExOne's United States chief operating officer, managing the company's five North American production service centers, will take responsibility for finished part production.

Dillon, Pierce, Rainer Hoechsmann, chief development officer and general manager of ExOne's German units, and Rick Lucas, chief technology officer, will report directly to Rockwell.

John D. Oravecz is a staff writer for Trib Total Media. He can be reached at 412-320-7882 or joravecz@tribweb.com.