3D Printers

3D Systems missed on revenue – lack of growth

3D Systems (DDD) reported for the first quarter 2016 revenues of $152.6M, against a consensus of $156.3. Excluding the contribution of consumer products and services that the company no longer sells, revenue decreased 2% year-over-year. The company reported a GAAP loss of $0.16 per share and non-GAAP earnings of $0.05 per share, in line with the consensus.

The company generated $18.1 million of cash from operations during the quarter and had $169.8 million of cash on hand at the end of March.

Vyomesh Joshi, the new CEO is stating:”I will be focusing on improving quality, reliability and supply chain. The next phase for us is to develop a strategy to drive profitable growth with operational excellence and an appropriate cost structure.”


Strong margin – lack of growth

The company managed to improve its growth but failed to grow the revenues. With a 2% decrease, sales are under the consensus and demonstrates the huge challenge facing the new CEO. 3D Systems is experiencing new competition. Going forward the market is going to become more difficult for 3D Systems. The company might not be able to keep innovating to grab market share from new entrants. In this context investors might not see value in the company beyond its current $1.5b market capitalisation.

Key financial data as reported by the company in the SEC 8K