3D Systems Reports Second Quarter and Six Months 2016 Financial Results

  • Revenue of $158.1 million and gross profit margin of 50.9% 
  • Continued strong demand and growth for healthcare solutions, software and materials
  • Generated $12.9 million of cash from operations

ROCK HILL, S.C., Aug. 03, 2016 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today its financial results for the second quarter and six months ended June 30, 2016.

For the second quarter of 2016, the company reported revenue of $158.1 million and a GAAP loss of $0.04 per share and non-GAAP earnings of $0.12 per share.

Quarterly revenue benefited from continued strong demand for the company’s healthcare solutions and software as well as higher materials orders from healthcare and industrial customers. However, these gains were not enough to offset the lower demand for 3D printers and on demand manufacturing in the quarter, resulting in a 7% decrease in revenue compared to the second quarter of 2015.

Gross profit margin for the second quarter of 2016 increased to 50.9% benefiting from the company’s shift away from consumer products and increased sales of higher margin materials, software and healthcare solutions. The comparable period of 2015 included charges in connection with the consolidation of production facilities that contributed to 47.9% gross profit margin.

For the second quarter of 2016, operating expenses were $84.1 million, including SG&A expenses of $63.2 million and R&D expenses of $20.9 million. Compared to the second quarter of 2015, SG&A expense decreased 21% on lower amortization and stock based compensation expenses and R&D expense decreased 19% due to timing of product development.

The company generated $12.9 million of cash from operations during the quarter and had $176.2 million of cash on hand at the end of June compared to $155.6 at December 2015.

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 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.”

“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.

Q2 2016 Conference Call and Webcast
The company expects to file its second quarter 2016 Form 10-Q with the Securities and Exchange Commission on August 3, 2016. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Wednesday, August 3, 2016, at 8:30 a.m. Eastern Time. 

Date: Wednesday, August 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

The recorded webcast will be available beginning approximately two hours after the live presentation at www.3dsystems.com/investor.

Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology.  Forward-looking statements are based upon managements beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company.  The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.

Presentation of Information in This Press release
To facilitate a better understanding of the impact that several strategic acquisitions had on its financial results, the company reported non-GAAP measures that adjust net income and earnings per share by excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses and stock-based compensation expense. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.  

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

Tables Follow

3D Systems Corporation
Unaudited Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss)
Quarter and Six Months Ended June 30, 2016 and 2015
  Quarter Ended June 30,    Six Months Ended June 30,  
(in thousands, except per share amounts) 2016  2015  2016  2015
Products$ 94,899  $ 104,577  $  185,863     $   204,399  
Services     63,212         65,927         124,803         126,827  
Total revenue   158,111         170,504         310,666         331,226  
Cost of sales:                    
Products   46,200         57,484         90,361         107,960  
Services     31,500         31,393         62,381         62,655  
Total cost of sales     77,700         88,877         152,742         170,615  
Gross profit   80,411         81,627         157,924         160,611  
Operating expenses:                    
Selling, general and administrative   63,228         79,738         137,195         154,030  
Research and development     20,900         25,731         41,205         47,947  
Total operating expenses     84,128         105,469         178,400         201,977  
Loss from operations   (3,717 )       (23,842 )       (20,476 )       (41,366 )
Interest and other (income) expense, net     (208 )       89         (334 )       2,656  
Loss before income taxes   (3,509 )       (23,931 )       (20,142 )       (44,022 )
Provision (benefit) for income taxes     1,700         (10,096 )       2,879         (17,039 )
Net loss     (5,209 )       (13,835 )       (23,021 )       (26,983 )
Less: net loss attributable to noncontrolling interests     (561 )       (139 )       (585 )       (106 )
Net loss attributable to 3D Systems Corporation $   (4,648 )   $   (13,696 )   $   (22,436 )   $   (26,877 )
Net loss per share available to 3D Systems Corporation common stockholders — basic
and diluted
$   (0.04 )   $   (0.12 )   $   (0.20 )   $   (0.24 )
Other comprehensive income (loss):                
Pension adjustments $   67     $   (3 )   $   36     $   262  
Foreign currency gain (loss)   (6,654 )       13,011         1,285         (7,946 )
Total other comprehensive income (loss)     (6,587 )       13,008         1,321         (7,684 )
Less foreign currency translation gain (loss) attributable to noncontrolling interests     (43 )       (1,581 )       46         (1,706 )
Other comprehensive income (loss) attributable to 3D Systems Corporation     (6,544 )       14,589         1,275         (5,978 )
Comprehensive loss   (11,796 )       (827 )       (21,700 )       (34,667 )
Less comprehensive loss attributable to noncontrolling interests   (604 )       (1,720 )       (539 )       (1,812 )
Comprehensive income (loss) attributable to 3D Systems Corporation $   (11,192 )   $   893     $   (21,161 )   $   (32,855 )

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