3D Systems Corporation (NYSE:DDD) announced today its financial results for the third quarter and nine months ended September 30, 2016.
For the third quarter of 2016, the company reported revenue of $156.4 million compared to $151.6 million in the third quarter of the previous year. The company reported a third quarter GAAP loss of $0.19 per share compared to a loss of $0.29 per share in the prior year and non-GAAP earnings of $0.14 per share compared to $0.01 per share in the third quarter of 2015.
Higher sales of 3D printers and materials into production applications as well as strong demand for the company’s software and healthcare solutions resulted in a 3% increase in revenue compared to the third quarter of 2015.
“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,” commented Vyomesh Joshi (VJ), Chief Executive Officer, 3D Systems.
Gross profit margin for the third quarter of 2016 was 44.1%. Gross profit margin was negatively impacted by non-recurring charges of $10.7 million related to prioritizing products and resources, consistent with the company’s recently announced strategy. Excluding these charges, gross profit margin for the third quarter of 2016 was 51.0%. Gross profit margin for the third quarter of 2015, excluding discontinued consumer products, was 50.6%.
For the third quarter of 2016, operating expenses were $91.0 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.
“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.”
The company generated $7.2 million of cash from operations during the quarter and $38.2 million in the first nine months of 2016 and had $179.4 million of cash on hand at the end of September.
For the first nine months of 2016, revenue decreased 3% to $467.0 million compared to $482.8 million in the first nine months of 2015. The company 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.
Q3 2016 Conference Call and Webcast
The company expects to file its third quarter 2016 Form 10-Q with the Securities and Exchange Commission on November 3, 2016. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Thursday, November 3, 2016, at 8:30 a.m. Eastern Time.
Date: Thursday, November 3, 2016
Time: 8:30 a.m. Eastern Time
Listen via Internet: www.3dsystems.com/investor
Participate via telephone:
Within the U.S.: 1-877-407-8291
Outside the U.S.: 1-201-689-8345
About 3D Systems
3D Systems provides comprehensive 3D products and services, including 3D printers, print materials, on-demand manufacturing services and digital design tools. Its ecosystem supports advanced applications from the product design shop to the factory floor to the operating room. 3D Systems’ precision healthcare capabilities include simulation, Virtual Surgical Planning, and printing of medical and dental devices as well as patient-specific surgical instruments. As the originator of 3D printing and a shaper of future 3D solutions, 3D Systems has spent its 30 year history enabling professionals and companies to optimize their designs, transform their workflows, bring innovative products to market and drive new business models.
More information on the company is available at www.3dsystems.com