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Thursday, August 06, 2015

3D Systems Reports Second Quarter and Six Months 2015 Financial Results

3D Systems Corporation announced today its financial results for the second quarter and first six months of 2015.

For the second quarter of 2015, the company reported revenue of $170.5 million, an increase of 13% over the comparable quarter in 2014, or a 22% increase on a constant currency basis. The company reported a GAAP loss of $0.12 per share and non-GAAP earnings of $0.03 per share.

A challenging operating environment contributed to an overall decline in organic revenue of 5% compared with the second quarter of 2014. At constant currency rates, organic growth was 2% for the second quarter.

Strengthening demand for the company's products and services resulted in a 25% increase in revenue in EMEA, compared to the second quarter of 2014. Continued macroeconomic weaknesses in APAC compressed revenue by 9%. Moderate recovery in the Americas held revenue growth to 15%.

Overall, the company experienced sequential growth in its SLA, SLS and DMP 3D printers as industrial customers, including aerospace and healthcare, began to resume purchasing. MJP and CJP 3D printer units leveled off sequentially after several periods of progressive decline.

Gross profit margin remained flat at 47.9% compared to the second quarter of 2014. While gross profit margins from materials and services increased, an inventory write-off and higher than normal manufacturing variances attributable to consolidation of production facilities restricted total gross profit margin expansion.

For the second quarter of 2015, the company reported operating expenses of $105.5 million, inclusive of $25.7 million of R&D expenditures, resulting in a sequential cash operating expenses increase of 11% primarily from the integration of acquisitions. The company used $6.4 million of cash in operations during the second quarter and had $171.2 million of cash on hand at the end of June.

For the second quarter of 2015, the company reported a GAAP net loss of $13.7 million, or a $0.12 loss per share, and non-GAAP net income of $3.1 million, or $0.03 earnings per share.

For the first six months of 2015, revenue grew 11% to $331.2 million, or a 19% increase on a constant currency basis, resulting in a GAAP loss of $0.24 per share and non-GAAP earnings of $0.07 per share.

"We are disappointed with our overall results," said Avi Reichental, President and Chief Executive Officer, 3DS. "While a period of high growth enabled us to acquire strategic assets and build critical expertise, our rapid expansion permitted certain operating inefficiencies that we are currently addressing. Specifically, we are enhancing the quality of our products and services, accelerating synergy and cost reduction measures, driving process improvements and working closely with our channel partners to improve our sales operations and worldwide coverage."

Recent Business Highlights

The company is focusing on leveraging its domain expertise in key verticals into new products and partnerships that it believes will drive incremental adoption, including:

  • Expanded its presence and coverage in China through the acquisition of Easyway
  • Broadened its partner network with the addition of Konica Minolta Australia, HK 3D in the United Kingdom, and MLC CAD Systems in the United States
  • Entered into additional agreements with the Air Force Research Laboratory, Honeywell and the U.S. Navy, expanding the company's relevance in aerospace and defense research and development activities
  • Expanded its CubePro™ 3D printer capabilities with Infinity™ rinse-away water soluble support material
  • Extended its education coverage by entering new distribution agreements with Douglas Stewart EDU and Thermo Fisher Scientific and strengthened its K-12 offering by integrating STEAMtrax's curricula into its education kits

"While industry conditions may constrain growth rates in the near term, we believe our focus on quality, innovation, operational excellence and partner friendliness will enhance our customer attractiveness and deliver greater earnings power as industry growth resumes," concluded Reichental.

To view the original press release, please click here.

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