3D Systems announced preliminary third quarter 2023 revenue results and provided a business update on the next phase of its multi-faceted restructuring initiative.
For the third quarter 2023, the company expects revenues between $123.0 - $124.0 million, a decrease from third quarter 2022 revenue of $9.3 - $8.3 million, driven primarily by continued softness in printer demand. While the company expects fourth quarter 2023 revenues to strengthen on a consecutive basis, consistent with historic seasonality trends, full year 2023 revenues will be softer than previously expected. This, combined with continued uncertainty in the macroeconomic and geopolitical environment, is leading the company to withdraw its full-year 2023 financial guidance, which was last provided on August 9, 2023.
In light of these results and continuing macro-risks, the company also announced the next evolution of its restructuring initiative designed to improve operating efficiencies throughout the organization and drive long-term value creation. This additional phase of the restructuring initiative will target to deliver expected annualized savings of $45 – $55 million by the end of 2024, with the majority of the cost takeout to occur by the end of the first quarter of 2024. The initiative is primarily targeted at continuing to rationalize headcount and geographic locations in all functions across the company. These efforts are expected to streamline the overall organization and reduce operating costs, while continuing to improve customer quality, and delivery reliability. Importantly, these cost actions are designed to preserve key investments in new product development, results of which are expected to include the release in 2024 of a number of highly innovative new production printing platforms and advanced engineering materials needed to meet anticipated customer needs in the years ahead. The net result of these actions will drive near term profitability and cash performance, while supporting exciting long-term growth as additive manufacturing continues to penetrate production environments around the world.
The company has not yet completed its financial and operating closing procedures for the third quarter 2023. Additionally, the preliminary financial data above has not been subject to review or other procedures by the company’s independent registered public accounting firm. As a result, actual results may differ materially from the preliminary results shown above and will not be publicly available until the company reports its third quarter 2023 results in early November 2023.
Third Quarter 2023 Financial Results Timing
Third quarter 2023 financial results and additional details regarding the restructuring initiative will be released before market and discussed by management during the Third Quarter 2023 Financial Results Conference Call on Wednesday, November 8, 2023.
Third Quarter 2023 Financial Results Conference Call
Date: Wednesday, November 8, 2023
Time: 8:30 a.m. Eastern Time
Listen via webcast: www.3dsystems.com/investor
Participate via telephone: 201-689-8345
The webcast replay will be available approximately two hours after the end of the conference call at www.3dsystems.com/investor.
