- Growth in production printers, materials and software as well as healthcare solutions drove quarterly revenue of $156.4 million
- Generated $7.2 million of cash from operations during the quarter
ROCK HILL, S.C., Nov. 03, 2016 (GLOBE NEWSWIRE) -- 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 companys 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 companys 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
The recorded webcast will be available beginning approximately two hours after the live presentation at www.3dsystems.com/investor.
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, may, will, 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 companys 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 companys 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 strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, the company reported non-GAAP measures excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses, stock-based compensation expense, litigation settlements and charges related to strategic decisions and portfolio realignment. 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
3D Systems Corporation
Unaudited Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss)
Quarter and Nine Months Ended September 30, 2016 and 2015
|Quarter Ended September 30,||Nine Months Ended September 30,|
|(in thousands, except per share amounts)||2016||2015||2016||2015|
|Cost of sales:|
|Total cost of sales||87,425||80,536||240,167||251,151|
|Selling, general and administrative||64,814||83,212||202,009||237,242|
|Research and development||26,140||22,463||67,345||70,410|
|Total operating expenses||90,954||105,675||269,354||307,652|
|Loss from operations||(22,017||)||(34,637||)||(42,493||)||(76,003||)|
|Interest and other expense, net||1,624||1,373||1,290||4,029|
|Loss before income taxes||(23,641||)||(36,010||)||(43,783||)||(80,032||)|
|Provision (benefit) for income taxes||(2,214||)||(3,524||)||665||(20,563||)|
|Less: net loss attributable to noncontrolling interests||(214||)||(237||)||(799||)||(343||)|
|Net loss attributable to 3D Systems Corporation||$||(21,213||)||$||(32,249||)||$||(43,649||)||$||(59,126||)|
|Net loss per share available to 3D Systems Corporation common stockholders basic and diluted||$||(0.19||)||$||(0.29||)||$||(0.39||)||$||(0.53||)|
|Other comprehensive income (loss):|
|Foreign currency translation gain (loss)||4,282||(9,957||)||5,567||(17,903||)|
|Total other comprehensive income (loss)||4,300||(9,943||)||5,621||(17,627||)|
|Less foreign currency translation gain (loss) attributable to noncontrolling interests||22||(882||)||68||(2,588||)|
|Other comprehensive income (loss) attributable to 3D Systems Corporation||4,278||(9,061||)||5,553||(15,039||)|
|Less comprehensive loss attributable to noncontrolling interests||(192||)||(1,119||)||(731||)||(2,931||)|
|Comprehensive loss attributable to 3D Systems Corporation||$||(16,935||)||$||(41,310||)||$||(38,096||)||$||(74,165||)|