ROCK HILL, South Carolina – May 3, 2017 - 3D Systems Corporation (NYSE: DDD) announced today its financial results for the first quarter of 2017.
For the first quarter of 2017, the company reported revenue of $156.4 million compared to $152.6 million in the first quarter of the previous year. The company reported a first quarter GAAP loss of $0.09 per share compared to a loss of $0.16 per share in the prior year and non-GAAP earnings of $0.06 per share compared to $0.05 earnings per share in the first quarter of 2016.
Revenue grew 3% compared to the first quarter of the prior year driven by increased demand from industrial customers and growth in healthcare and materials.
“We are pleased with the continued growth in healthcare and strong demand for our production printers and materials as well as the improvement in on demand manufacturing services in the first quarter,” commented Vyomesh Joshi (VJ), Chief Executive Officer, 3D Systems. “We are delighted with early positive industry and customer feedback received during the quarter on our breakthrough Figure 4 technology platform and expansion in the healthcare market with the acquisition of Vertex.”
Gross profit margin for the first quarter of 2017 was 51.3% compared to 50.8% in the first quarter of 2016 as cost savings continue to be realized from supply chain and manufacturing improvements.
For the first quarter of 2017, operating expenses were $89.3 million compared to $94.3 million in the prior year. Compared to the prior year, SG&A expenses decreased 10% to $66.4 million on lower stock based compensation and bad debt expense. R&D expenses increased 13% over the prior year period to $22.9 million, primarily from focused investments in production application solutions including Figure 4 and materials.
“We believe we are striking the right balance between investments in go to market and innovation while driving operational excellence across our business,” commented John McMullen, Executive Vice President and Chief Financial Officer. “We have many initiatives in place which will continue throughout the year while we continue to drive profitable growth.”
The company generated $19.4 million of cash from operations during the first quarter, and ended the quarter with $161.7 million of cash on hand, after paying for the acquisition of Vertex Global, compared to $184.9 million at the end of 2016.
“We continue to focus on expanding the market and accelerating adoption in key verticals. We are delivering advanced solutions that provide durability, repeatability, productivity and effective total cost of operations to drive the shift in 3D printing from prototyping to production,” concluded Joshi.
Reiterated Guidance for 2017
Based on the results of the first quarter and expectations for the remainder of the year, management reiterated previously provided guidance for 2017. For the full year 2017, management expects revenue growth of 2% to 8% resulting in a revenue range of $643 million to $684 million. Management expects GAAP earnings per share in the range of $0.02 to $0.06 and non-GAAP earnings per share in the range of $0.51 to $0.55. Additionally, management expects to continue to generate positive cash flow from operations in 2017.
Q1 2017 Conference Call and Webcast
The company expects to file its Form 10-Q for the quarter ended March 31, 2017 with the Securities and Exchange Commission on May 3, 2017. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Wednesday, May 3, 2017, at 4:30 p.m. Eastern Time.
Date: Wednesday, May 3, 2017
Time: 4:30 p.m. Eastern Time
Listen via Internet: www.investorcalendar.com
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,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s 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 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