A3D – Aurora Labs | Aussie Stock Forums

I still stand by my quoted statement above but note that A3D has today reversed its share price decline quite dramatically. It is currently up 25.30% to 52c, although it reached in intraday high of 67c.

Aurora Labs announced this morning that its 3D metal printing Large Format Technology (LFT) is capable of printing complex parts (a part that has a series of curves and internal structures that would normally be considered difficult to manufacture by traditional methods). The initial prints using the LFT achieved a speed equivalent to 662 g/h or 15.88 kg per day. The tests were carried out on the Alpha model, which is Aurora’s first fully functioning LFT machine.

You can view the video here: https://auroralabs3d.com/#!media/videos/20180918_01

The news seems positive but I decided to take a look at their FY18 financial results as A3D had fallen off my radar recently.

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A3D’s losses are deepening and FY18 revenue isn’t substantially different from FY17 (i.e. revenue is tiny compared to accumulated losses). When I took a closer look at revenue I found that in FY18 only $306,050 was receipts from customers, while $149,390 in refunds to customers was given. That’s almost 50% of revenue from customers was refunded.

As at 30 June 2018 the company had $3,790,081 in cash at hand and in bank/term deposits. I couldn’t find an estimated cash outflows for the current quarter but if the previous year is anything to go by A3D will be out of cash by the end of 2018, so there will certainly be another placement before then.

The share price is up 25% today, but I see it declining further in the months to come unless something can be done to increase revenue and stem the operating losses.

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