ROCK HILL, South Carolina – February 28, 2017 - 3D Systems Corporation (NYSE: DDD) announced today its financial results for the fourth quarter and full year ended December 31, 2016.
For the fourth quarter of 2016, the company reported revenue of $165.9 million compared to $183.4 million in the fourth quarter of the previous year. The company reported fourth quarter GAAP earnings of $0.05 per share compared to a loss of $5.32 per share in the prior year and non-GAAP earnings of $0.15 per share compared to $0.19 per share in the fourth quarter of 2015.
Demand from industrial customers combined with growth in software and healthcare services were not enough to offset the impact of weaker sales of professional printers and on-demand services, resulting in a 10% decrease in revenue in the fourth quarter of 2016 compared to the fourth quarter of 2015.
"Continued demand for our production printers and materials reaffirms our belief that our industry is at an inflection point in the transition from prototyping to production," commented Vyomesh Joshi (VJ), Chief Executive Officer, 3D Systems.
Gross profit margin for the fourth quarter of 2016 was 50.0%. Gross profit margin for the fourth quarter of 2015, excluding charges related to discontinued consumer products, was 47.7%.
For the fourth quarter of 2016, operating expenses were $78.8 million. Operating expenses for the fourth quarter of 2015 were $88.9 million, excluding goodwill and intangible impairment charges. Compared to the prior year, SG&A expenses decreased 13% to $57.8 million on lower stock based compensation, amortization and legal expenses. R&D expenses decreased 6% over the prior year period to $21.1 million.
"We are seeing clear progress in our initiatives to drive operational excellence and establish an appropriate cost structure," commented John McMullen, Executive Vice President and Chief Financial Officer. "We still have a lot of work to do, but we are making improvements in our key processes, infrastructure and operations. We expect continued positive cash generation and improved profitability while we make investments in IT, go to market and innovation."
The company generated $18.7 million of cash from operations during the fourth quarter and $56.9 million in the full year 2016, and ended the year with $184.9 million of cash on hand compared to $155.6 million at the end of 2015.
For the full year 2016, revenue decreased 5% to $633.0 million compared to $666.2 million in 2015, which included approximately $20 million of revenue from consumer products that the company discontinued at the end of 2015. The company reported a GAAP loss of $0.35 per share for 2016 compared to a loss of $5.85 per share in 2015 and non-GAAP earnings of $0.46 per share compared to non-GAAP earnings of $0.27 per share in 2015.
"We see tremendous market opportunities for 3D production. With focused innovation and execution, we are delivering solutions for key verticals, use case by use case to drive profitable growth and make 3D production real," concluded Joshi.
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.
Q4 2016 Conference Call and Webcast
The company expects to file its Annual Report on Form 10-K for the year ended December 31, 2016 with the Securities and Exchange Commission on February 28, 2017. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Tuesday, February 28, 2017, at 8:30 a.m. Eastern Time.
Date: Tuesday, February 28, 2017
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 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