3D Systems (NYSE:DDD) will report financial results for 2017 later than expected due to accounting for product warranty revenue and costs.
The 3D printer manufacturer and service provider, headquartered in Rock Hill, South Carolina, concluded further examination relating to the accounting standard Revenue from Contracts with Customers (Topic 606) is required. The full announcement will now take place on Wednesday, March 14, 2018 after the market closes.
Resolving “legacy issues as quickly as possible” was a key message during a call with investors to discuss the company’s previous financial results.
Year-on-year revenue growing at 2%
For the final quarter of 2017, 3D Systems expects revenue ranging from$176 million to $178 million, a 6-7% growth on the comparative figure of $165.9 million in 2016.
Speaking about the results Vyomesh Joshi (VJ), 3D Systems CEO said, “We are pleased with the growth in revenue driven by healthcare, materials, software and on demand manufacturing, as well as more balanced regional execution experienced in the fourth quarter.”
A GAAP loss in the range of $0.08 to $0.10 per share compared to earnings of $0.05 per share in the prior year, for the fourth quarter is expected.
Full year results are anticipated to show increase in revenue of 2%, ranging from $645 million to $647 million versus the comparative of $633.0 million in 2016.
This is likely to result in GAAP loss in the range of $0.58 to $0.60 per share for the full year 2017 compared to a loss of $0.35 per share in the prior year.
“While we still have work to do, we made significant progress in 2017 to stabilize and turn around the company. We believe our investments in go-to-market combined with improved processes and better execution have started to show returns, and I look forward to discussing our progress and our significant opportunity going forward on our conference call in a couple of weeks,” added Joshi.
The news was well received by the financial markets, with an initial 20% increase in 3D Systems’ stock price. This increase is in contrast to the decline in Stratasys’ share price. Although the rival 3D printing company also reported a 2% increase in revenue, investors reacted badly to financial guidance provided.
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Featured image shows 3D Systems Figure 4 3D printer. Photo by Michael Petch.
