Exone end to end binder jetting service

Q2 2016 Financial Results are in for 3D Systems: Healthcare Solutions Take Them Up; 3D Printer Sales Drag Them Down

Metal Parts Produced
Commercial Space
Medical Devices

Share this Article

logo (15)We’ve seen plenty of ups and downs in the 3D printing industry lately, marking successes and upheaval as is normal in any business environment—and especially one that is working its way up to the crowded and fiercely competitive point. While the outlook for the future certainly seems bright in an industry that is only expected to expand exponentially, that doesn’t mean that every organization is going to handle their resources or bottom line correctly. When it comes to the titans of 3D printing though, such as 3D Systems, most everyone is rooting for them, hoping to see brighter numbers as a good portent for all, signaling that everything is going to be okay.

I wouldn’t say that those relying on 3D Systems as the pulse of the industry are going to be thrilled as their Second Quarter & Six Months 2016 Financial Results roll out, but all is certainly not dire as they show:

  • Revenue of $158.1 million
  • GAAP loss of $0.04 per share
  • Non-GAAP earnings of $0.12 per share

What we are seeing in terms of success is strategy and preserving brand. The strengths that 3D Systems is showing right now are not in 3D printing sales, but rather in the other areas they are putting strong focus on, with multiple streams of income coming in from healthcare solutions and software as well as higher materials orders from healthcare and industrial customers. As 3D printer sales and on-demand manufacturing fell, it resulted in the current 7% decrease in comparison to last year at this time.

3d54137A look at their gross profit margin shows again, reward from software and healthcare solutions, with an increase of 50.9%. This is obviously not a positive mark for 3D printer sales or manufacturing as it highlights departing from selling actual consumer products. In using 2015 as comparison, it’s important to note also that charges related to product facility consolidation added to the gross profit margin of 47.9%.

“We were pleased with continued strong demand for our healthcare solutions and software as well as increased materials sales into advanced industrial and healthcare applications,” commented Vyomesh Joshi (VJ), Chief Executive Officer, 3D Systems. “We see clear opportunities for improvements in 3D printers and on demand manufacturing services as we drive operational excellence and focus on providing reliable end-to-end solutions.”

Operating expenses were on the decrease, to the tune of 21% from this time last year—at $84.1 million now, to include SG&A expenses of $63.2 million and R&D expenses of $20.9 million. The significant decrease is attributed to lower amortization and stock based compensation expenses. Research and development expenses were also shown at a 19% decrease in comparison to second quarter of 2015. 3D Systems reports that as a direct result of timing in product development. They saw $12.9 million of cash for this quarter, and an increase in cash on hand, with $176.2 million of cash as of the end of June—an increase from $155.6 this past December.

For the first six months of 2016, revenue decreased 7% to $310.7 million resulting in a GAAP loss of $0.20 per share and non-GAAP earnings of $0.17 per share.

“We are building a comprehensive strategy and assembling a world-class team and organizational structure we believe will enable us to deliver exceptional customer value, drive profitable growth and accelerate digital manufacturing,” concluded Joshi.

3D Systems will hold a conference call along with a simultaneous webcast to discuss these results on Wednesday, August 3, 2016, at 8:30 a.m. Eastern Time—the same day that they file their second quarter 2016 Form 10-Q with the Securities and Exchange Commission. The recorded webcast will be available beginning approximately two hours after the live presentation. Discuss your thoughts in the 3D Systems Second Quarter Report forum over at 3DPB.com.

[Source: 3D Systems]
3D Systems Healthcare Technology Center in Littleton, CO.

3D Systems Healthcare Technology Center in Littleton, CO.

Share this Article


Recent News

Quick, Easy Post-Processing of 3D Printed Parts with Ultimaker’s PVA Removal Station

Fashion Designer Reimagines Footwear Landscape with 3D Printed HERON01 Sneaker



Categories

3D Design

3D Printed Art

3D Printed Food

3D Printed Guns


You May Also Like

Polly Polymer’s 3D Printing “Super Factory” Driven by $15.5M Investment

Polly Polymer, a startup in China that develops high-speed stereolithography (SLA) 3D printing equipment, polymers, and software, raised 100 million Chinese Yuan ($15.5 million) in a Series A+ round. The...

New adidas 4DFWD Shoes with 3D Printed Midsoles Available for Purchase

Update: The new 4DFWD shoes from adidas, just worn on the podium by adidas athletes at the Tokyo Olympics, are now available to the public for purchase for $200. adidas has...

LLNL’s 3D Printed Electrodes Could Convert CO2 to Renewable Energy

Scientists and engineers at Lawrence Livermore National Laboratory (LLNL) are now 3D printing flow-through electrodes (FTEs), which are critical components in electrochemical reactors. Electrochemical reactors can convert carbon dioxide into...

Featured

Rawlings, Carbon and Fast Radius Use 3D Printing to Revolutionize Baseball Glove Design

Since the 2021 Major League Baseball season began, New York Mets shortstop Francisco Lindor has been seen sporting Rawlings next-generation glove in stylish, eye-catching neon green and black design. Meticulously...


Shop

View our broad assortment of in house and third party products.