ROCK HILL, South Carolina - October 30, 2018 - 3D Systems Corporation (NYSE: DDD) announced today its financial results for the third quarter ended September 30, 2018.
For the third quarter of 2018, the company reported 8 percent revenue growth to $164.5 million compared to $152.9 million in the third quarter of the previous year. The company reported a GAAP loss of $0.10 per share in the third quarter of 2018 and a GAAP loss of $0.34 per share in the third quarter of 2017, and non-GAAP earnings of $0.02 per share in the third quarter of 2018 compared to a non-GAAP loss of $0.20 per share in the third quarter of 2017.
"We are pleased with our continued strong growth in printer units and printer revenue, in both metals and plastics, as we continue to have balanced execution across all regions. At the same time, we are starting to see cost structure improvements as a result of actions we have taken over the last year," commented Vyomesh Joshi (VJ) chief executive officer, 3D Systems.
The company reported 17 percent higher printer revenue on 93 percent higher printer unit sales, 14 percent growth in healthcare solutions, 2 percent growth in materials and 8 percent growth in software.
The company reported GAAP gross profit margin of 47.3 percent for the third quarter of 2018 as cost improvements from ongoing supply chain cost reduction initiatives were offset by the impact of sales mix and ramp of new products. In the third quarter of 2017, GAAP gross profit margin was 38.3 percent, including $12.9 million of charges related to portfolio realignment and product discontinuations.
For the third quarter of 2018, GAAP operating expenses were $88.8 million compared to $90.9 million in the prior year period. SG&A expenses decreased 1 percent to $65.6 million, driven by lower compensation expenses while at the same time the company continued investments in go-to-market and IT transformation. R&D expenses decreased 5 percent from the third quarter of the prior year to $23.2 million as the company began to ship the previously announced new products.
"We are very pleased with the progress we are seeing this year, and we believe our results are beginning to reflect returns on our investments and cost optimization actions," commented John McMullen, executive vice president and chief financial officer. "While our work is not done, we believe we are well-positioned to continue to invest in the business and drive growth while continuing to improve our cost structure and increase operating leverage over the long term."
The company used $12.1 million of cash in operations and ended the quarter with $92.1 million of unrestricted cash on hand. During the quarter, the company increased inventory in support of new product shipments and the ramp of printer manufacturing, and paid a previously accrued, $9.1 million liability related to a litigation settlement in connection with a prior acquisition.
"With our continued revenue growth, new product rollouts and strong partnerships, I am very excited about the future of 3D Systems. We remain focused on execution, advanced solutions and operational efficiencies, and we have an unmatched portfolio to drive 3D production and long-term growth," concluded Joshi.
Q3 2018 Conference Call and Webcast
The company expects to file its Form 10-Q for the quarter ended September 30, 2018 with the Securities and Exchange Commission on October 30, 2018. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Tuesday, October 30, 2018, at 4:30 p.m. Eastern Time.
- Date: Tuesday, October 30, 2018
- Time: 4:30 p.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
A replay of the webcast will be available 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 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