FREMONT, Calif. - Velo3D, Inc. (NYSE: VLD), a metal additive manufacturing firm, has announced a significant boost in its order book, with $27 million in new orders received since mid-December 2023. A noteworthy addition to its clientele is Mears Machine, a global contract manufacturer, which has purchased two Sapphire XC systems to be used specifically for defense and aerospace parts production.
The company has reported ending the first quarter of 2024 with $17 million in bookings and a backlog of $23 million. Deliveries of the systems are scheduled to commence in the second quarter of 2024. This influx of orders reflects growing customer trust in Velo3D's technology and a successful shift in market strategy, particularly within the defense and space sectors.
Brad Kreger, CEO of Velo3D, expressed optimism about the company's direction, noting that over half of the recent orders came from existing customers. Kreger highlighted the company's focus on system reliability and customer success as key factors in securing repeat business and attracting new clients like Mears Machine.
Velo3D also provided preliminary financial estimates for the first quarter ended March 31, 2024. The company expects revenue to be between $6 and $11 million, attributing the majority of bookings to the latter part of the quarter.
Gross margin is anticipated to range from negative 25 percent to positive 10 percent, with a goal of reaching approximately 30 percent gross margin by the fourth quarter of 2024. Operating expenses for the first quarter, excluding certain charges, are projected to be between $13 million and $18 million.
These preliminary figures are based on currently available information and data, and as the company finalizes its financial statements, the actual results may be subject to adjustments. This announcement is based on a press release statement and does not substitute for financial statements prepared in accordance with generally accepted accounting principles.
Velo3D, known for overcoming limitations in legacy metal additive manufacturing, has been a strategic partner to companies such as SpaceX, Lockheed Martin (NYSE:LMT), and General Motors (NYSE:GM). The company's integrated solution encompasses software, printers, and quality control systems designed to enable the production of mission-critical metal parts previously unattainable with conventional 3D printing technologies.
InvestingPro Insights
Velo3D's recent surge in orders and strategic partnerships underscore the company's growing influence in the metal additive manufacturing sector. As investors consider the implications of Velo3D's (NYSE: VLD) market performance and financial health, certain metrics and InvestingPro Tips provide a deeper insight into the company's prospects.
InvestingPro Data highlights a market capitalization of $149.47 million, which reflects the company's current valuation in the market. Despite a challenging revenue growth rate of -3.96% over the last twelve months as of Q4 2023, the company has managed to achieve a significant return over the last week, with a 26.95% increase in its stock price. This suggests a positive short-term investor sentiment, which may be influenced by the recent order book developments and the company's strategic focus on the defense and aerospace sectors.
However, the company's financial health shows signs of strain, with a negative P/E Ratio (adjusted) of -1.14, indicating that the company is not currently profitable. This aligns with an InvestingPro Tip that analysts do not anticipate Velo3D will be profitable this year. Additionally, with a gross profit margin of -33.71%, Velo3D is struggling to retain earnings from its revenue, which is a point of concern for potential investors.
InvestingPro Tips also reveal that Velo3D is quickly burning through cash and operates with a moderate level of debt. This financial position may require careful management to sustain operations and support growth initiatives. Moreover, Velo3D's stock generally trades with high price volatility, which could be a consideration for investors looking for stable returns.
For those seeking a comprehensive analysis, InvestingPro offers additional tips on Velo3D, providing a more nuanced understanding of the company's performance and market potential. Interested readers can explore these insights by visiting the dedicated page at https://www.investing.com/pro/VLD and can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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