FREMONT, Calif. - Velo3D, Inc. (NYSE: VLD), a prominent company in the additive manufacturing sector, announced today the permanent appointment of Brad Kreger as Chief Executive Officer. Kreger, who has been serving as the interim CEO since December 2023, has been credited by the Board of Directors for successfully implementing strategic initiatives that have positively influenced the company's trajectory over the past six months.
Under Kreger's guidance, Velo3D has seen a significant realignment of its operations, leading to a marked reduction in operating expenses—by 30% year over year—and an improvement in operating efficiency. The company has also reported a substantial increase in bookings, with $27 million in new orders since mid-December, half of which came from existing customers.
The Board of Directors, chaired by Carl Bass, expressed confidence in Kreger's leadership, noting the acceleration of orders and the positive response from customers. Kreger's strategic direction has not only streamlined costs but also enhanced the quality of Velo3D's Sapphire printer, reducing installation time by over 40%. These improvements have contributed to a healthier cash flow and a strong backlog of $22 million going into the second quarter of 2024.
Kreger, expressing gratitude for the Board's confidence, emphasized the company's growing opportunities in the defense sector and its unique position as a U.S.-based manufacturer capable of meeting stringent industry requirements. Velo3D's focus on customer satisfaction and system reliability has resulted in a 100% resolution rate for high-priority tickets in the first quarter of 2024.
Velo3D specializes in metal 3D printing technology, providing solutions that have expanded the possibilities for high-value metal parts construction. The company's technology has been embraced by industries such as aerospace, defense, and energy, allowing for the production of complex parts that were previously unattainable with traditional manufacturing methods.
The information regarding Velo3D's strategic initiatives and leadership appointment is based on a press release statement. The company cautions against placing undue reliance on forward-looking statements, acknowledging the risks and uncertainties detailed in its recent SEC filings.
In other recent news, Velo3D Inc (NYSE:VLD)., a leading metal additive manufacturing firm, has announced several major developments. The company's board of directors has approved a 1-for-35 reverse stock split, aiming to meet the New York Stock Exchange’s minimum share price requirement for continued listing. This action will not change the number of authorized shares or the common stock's par value, but will reduce the company’s outstanding shares from approximately 297 million to about 8.5 million.
In terms of financial performance, Velo3D reported first-quarter revenue for 2024 of $10 million, in line with its guidance. Despite a negative gross margin of 29% for the quarter, the company anticipates improvements in the following quarter and aims for sustainable profitability by year-end. Velo3D also reported a GAAP net loss of $28.3 million and a non-GAAP net loss of $20.2 million for the quarter.
The company is targeting over 30% sequential revenue growth in the second quarter and cash flow breakeven in the second half of 2024. Furthermore, Velo3D is projecting a full-year revenue between $80 million to $95 million. These recent developments underscore the company's focus on improving operating efficiency, margin, and cash flow.
InvestingPro Insights
As Velo3D (NYSE: VLD) reaffirms its strategic direction under the leadership of CEO Brad Kreger, a closer look at the company's financial health and market performance through InvestingPro reveals a mixed picture. While the company has demonstrated a strong ability to secure new orders and improve operational efficiency, certain financial metrics indicate areas of concern.
An InvestingPro Tip points out that Velo3D operates with a significant debt burden and may have trouble making interest payments on its debt. This is a critical consideration for investors as the company navigates its growth in a competitive sector. Additionally, analysts have revised their earnings downwards for the upcoming period, suggesting that the market may have reservations about the company's short-term profitability prospects.
InvestingPro Data shows a market capitalization of $28.43 million, reflecting the company's current valuation in the market. The company's P/E ratio stands at -0.16, indicating that investors are not currently seeing earnings from their investment, a common scenario for growth-focused companies. Moreover, the recent price performance has been concerning, with a one-month price total return of -56.04%, highlighting the volatility and investor sentiment surrounding Velo3D's stock.
Despite these challenges, it's worth noting that Velo3D is still a key player in the additive manufacturing industry, with a unique position in high-value sectors like defense and aerospace. Investors interested in a deeper dive into Velo3D's financials and market potential can find additional InvestingPro Tips by visiting https://www.investing.com/pro/VLD. For those considering a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 21 additional tips listed in InvestingPro, which could provide further insights into Velo3D's investment potential.
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