ROCK HILL, S.C., Aug. 07, 2018 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE: DDD) announced today its financial results for the second quarter ended June 30, 2018.
For the second quarter of 2018, the company reported 11 percent revenue growth to $176.6 million compared to $159.5 million in the second quarter of the previous year. The company reported a GAAP loss of $0.08 per share in the second quarter of 2018 and 2017, and non-GAAP earnings of $0.06 per share in the second quarter of 2018 compared to non-GAAP earnings of $0.08 per share in the second quarter of 2017.
"We are pleased with our results for the second quarter, which were driven by strong revenue growth, including growth in both printer revenue and units as we continue to improve execution and are seeing the early returns on our investments in both innovation and go-to-market," commented Vyomesh Joshi (VJ) chief executive officer, 3D Systems.
The company reported 41 percent higher printer revenue on 37 percent higher printer unit sales, 26 percent growth in healthcare solutions, and growth in materials and on demand manufacturing.
The company reported GAAP gross profit margin of 48.8 percent for the second quarter of 2018 compared to 50.6 percent in the second quarter of the prior year. The impact of mix of sales and investment in services and on demand manufacturing offset cost improvements from ongoing supply chain cost reduction initiatives.
For the second quarter of 2018, GAAP operating expenses were $93.9 million compared to $87.5 million in the prior year period. SG&A expenses increased 13 percent to $71.2 million, which included continued investment in go-to-market, IT transformation and higher legal fees. R&D expenses decreased 7 percent from the second quarter of the prior year to $22.7 million as the company began to ship the previously announced new products. The company expects to continue to roll out new products as planned throughout 2018.
”We are very pleased with the progress we are seeing in the first half of 2018 from both our investments and the hard work by our employees,” commented John McMullen, executive vice president and chief financial officer. “We continue to make the investments we believe are critical for success while at the same time improving our cost structure over the long term.”
During the quarter, the company generated $10.7 million of cash in operations and ended the quarter with $119.3 million of unrestricted cash on hand.
“In addition to our performance in the second quarter, we are also very pleased to be partnering with Georg Fischer, a highly regarded leader in machining solutions, to create new integrated solutions and expand our global network and market opportunity. With our product rollouts in 2018, we believe our portfolio is second to none in regards to breadth and competitiveness, and we continue to be keenly focused on execution and operational efficiency to drive long-term growth and profitability,” concluded Joshi.
Q2 2018 Conference Call and Webcast
The company expects to file its Form 10-Q for the quarter ended June 30, 2018 with the Securities and Exchange Commission on August 7, 2018. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Tuesday, August 7, 2018, at 4:30 p.m. Eastern Time.
Date: Tuesday, August 7, 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.
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
Tables Follow
3D Systems Corporation
Unaudited Condensed Consolidated Balance Sheets
June 30, 2018 and December 31, 2017
| (in thousands, except par value) | June 30, 2018 |
December 31,
2017 |
|||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 119,313 | $ | 136,344 | |||
| Accounts receivable, net of reserves — $10,049 (2018) and $10,258 (2017) | 130,870 | 129,879 | |||||
| Inventories | 114,493 | 103,903 | |||||
| Insurance proceeds receivable | 50,000 | 50,000 | |||||
| Prepaid expenses and other current assets | 25,428 | 18,296 | |||||
| Total current assets | 440,104 | 438,422 | |||||
| Property and equipment, net | 104,679 | 97,521 | |||||
| Intangible assets, net | 82,141 | 98,783 | |||||
| Goodwill | 224,955 | 230,882 | |||||
| Deferred income tax asset | 7,216 | 4,020 | |||||
| Other assets, net | 26,217 | 27,136 | |||||
| Total assets | $ | 885,312 | $ | 896,764 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Current portion of capitalized lease obligations | $ | 646 | $ | 644 | |||
| Accounts payable | 58,019 | 55,607 | |||||
| Accrued and other liabilities | 72,400 | 65,899 | |||||
| Accrued litigation settlement | 50,000 | 50,000 | |||||
| Customer deposits | 5,903 | 5,765 | |||||
| Deferred revenue | 38,617 | 29,214 | |||||
| Total current liabilities | 225,585 | 207,129 | |||||
| Long term portion of capitalized lease obligations | 6,732 | 7,078 | |||||
| Deferred income tax liability | 9,892 | 8,983 | |||||
| Other liabilities | 46,398 | 48,754 | |||||
| Total liabilities | 288,607 | 271,944 | |||||
| Redeemable noncontrolling interests | 8,872 | 8,872 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock, $0.001 par value, authorized 220,000 shares; issued 117,249 (2018) and 117,025 (2017) | 116 | 115 | |||||
| Additional paid-in capital | 1,339,984 | 1,326,250 | |||||
| Treasury stock, at cost — 2,503 shares (2018) and 2,219 shares (2017) | (10,007 | ) | (8,203 | ) | |||
| Accumulated deficit | (707,015 | ) | (677,772 | ) | |||
| Accumulated other comprehensive loss | (32,878 | ) | (21,536 | ) | |||
| Total 3D Systems Corporation stockholders' equity | 590,200 | 618,854 | |||||
| Noncontrolling interests | (2,367 | ) | (2,906 | ) | |||
| Total stockholders’ equity | 587,833 | 615,948 | |||||
| Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ | 885,312 | $ | 896,764 | |||
3D Systems Corporation
