3D Systems Reports Second Quarter Financial Results

It’s that time of year again. Another quarter, another financial report by one of the world’s largest 3D printing company, 3D Systems. Just moments ago, they released their key numbers for the quarter, which have come in slightly below analyst estimates, both on the top and bottom lines.

Analysts were expecting to see revenue for the quarter at about $161 million, while the report indicates revenue of $151.5 million. Additionally, analysts had expected non-GAAP earnings of around 18 cents per share, whereas 3D systems reported just 16 cents per share.

“We are pleased that unit sales of our design and manufacturing printers increased 126% and helped fuel a 30% increase in materials revenue,” said Avi Reichental, 3D Systems’ President and Chief Executive Officer. “We believe that the record order book that we exited the quarter with reflects the vibrancy of our business and our organic growth trajectory.”

A few of the highlights from the second quarter financial results which are evidence of the growth that 3D Systems is experiencing are as follows:

• Gross profit margin came in at 47.8%, quite a bit below last year’s second quarter numbers.
• There was an increase of 38% in service revenues, compared to last year’s second quarter.
• Revenue for the Design and Manufacturing areas of their business increased 28% over this quarter last year.
• Revenue within the healthcare space increased 46% from last year’s second quarter.
• Operating expenses were flat year over year, in spite of continued investments in R&D.

“As we advance our market leadership and scale in key verticals through our increased investments, our progress is ahead of schedule and our enterprise-wide synergies are already generating substantial cash from operations,” stated Reichental.

As for their guidance over the remainder of the year, 3D Systems estimates are in line with what analysts had expected. They estimate non-GAAP earnings per share coming in for the year at $0.73 to $0.85, with revenue of $700 million to $740 million. Traditionally a larger portion of the company’s revenues are realized in the second half of the year, a trend which should continue this year as well.

There is no doubt that the company is seeing tremendous growth, and realizes that acquisitions and continued R&D are important factors to maintaining their lead on the competition as the 3D printing space continues to expand rapidly.

3D System’s stock (DDD) is taking a hit this morning, down $7.11, or 12.6% in pre-market trading. Complete financial results, including their updated balance sheet can be found here. Let us know what you think about this quarter’s financial results in the 3D Systems Results forum thread on 3DPB.com.