3D Systems Reports Q3 & Nine Months 2016 Results: Growth Up from Hardware & Materials Sales
This year, the second quarter marked a more positive outlook for many of the titans in 3D printing, from Stratasys beating expectations to voxeljet showing better financials—along with 3D Systems showing some new strength.
Now, as the Rock Hill, South Carolina-based 3D printing manufacturing giant announces results for their Third Quarter & Nine Months 2016 Financial Results (ending September 30), we see that they are ahead in regards to figures released at the same time last year, along with a third quarter GAAP loss of $0.19 per share. That is in comparison with last year, when the 3D printing leaders showed a loss of $0.29 per share. For Q3, non-GAAP earnings were reported at $0.14 per share, with the last year’s figures showing $0.01 per share.
Stating that 3D printing sales did not play as large a role in last quarter’s successes, as the Q3 numbers roll out, we see a different story for 3D Systems with hardware sales and materials playing a part, along with that of their software and healthcare solutions, in strong demand, and leading to a 3% increase when compared to this quarter last year.
“We believe strong demand for our production printers, materials and software as well as healthcare solutions during the quarter is indicative of our growth potential and market opportunities,” said Vyomesh Joshi (VJ), CEO of 3D Systems.
Other highlights of the report include gross profit margin – at 44.1%, this number was affected through non-recurring charges of $10.7 million which the company states are connected to “prioritizing products and resources.” Excepting these charges, gross profit margin would have been 51%—with that number for last year in Q3 at 50.6%.
Operating expenses were listed at $91 million.
“Compared to the third quarter of 2015, SG&A expenses decreased 22% to $64.8 million on lower amortization and legal expenses. A $6.1 million non-recurring write-off of assets related to exiting projects drove a 16% increase in R&D expenses over the prior year period to $26.1 million,” stated 3D Systems in their press release regarding the report for Q3.
3D Systems also reported that they generated $7.2 million of cash from operations during the quarter and $38.2 million in the first nine months of 2016, with $179.4 million of cash on hand at the end of September.
“Our focus is to drive operational excellence and build an appropriate cost structure, which will provide capacity to invest into quality, reliability and innovation,” commented John McMullen, Executive Vice President and Chief Financial Officer. “We believe this will position us to drive profitable growth and continued positive cash generation.”
In more comparisons to 2015, for the first nine months, we see that revenues this year decreased 3% to $467.0 million compared to $482.8 million in the first nine months of 2015. They also reported a GAAP loss of $0.39 per share for the first nine months of 2016 compared to a loss of $0.53 per share in the same period of the prior year and non-GAAP earnings of $0.31 per share compared to $0.08 per share in the first nine months of 2015.
“We believe our synergistic portfolio of technologies, our talent and our 3D printing ecosystem uniquely position us to support complete digital manufacturing workflows to make 3D production real,” concluded Joshi.
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