ROCK HILL, SC, Oct 23, 2014 – 3D Systems Corp. announced that it anticipates its third quarter revenue to be in the range of $164 million to $169 million and a sequentially growing order book of $42 million. The company expects to report GAAP earnings per share in the range of $0.01 to $0.03 and non-GAAP EPS in the range of $0.16 to $0.19. These are preliminary results based on current expectations and are subject to quarter-end closing adjustments, actual results may differ.
Strengthening sales of the company’s design, manufacturing and healthcare products and services were not enough to overcome the revenue shortfall from the continued manufacturing capacity constraints for its direct metals printers and delayed availability of its newest consumer products.
“We are disappointed that we failed to fully capitalize on the robust demand for our direct metal and consumer products during the quarter,” said Avi Reichental, president and chief executive officer, 3DS. “While we worked very hard to deliver these products sooner, achieving manufacturing scale, quality and user experience targets took significantly longer than we had anticipated.”
At the end of the third quarter, the company brought online a second direct metal 3D printers’ manufacturing line and began commercial shipments of its latest consumer printers.
“Now that we have closed these availability gaps, we expect our revenue growth rate to increase,” continued Reichental.
The company expects to report that its materials’ gross profit margins rebounded for the quarter and its Quickparts’ gross profit margin expanded sequentially, despite greater drag from concentrated service bureau acquisitions in the quarter. Notwithstanding these gains, the company expects its consolidated gross profit margin for the quarter to remain sequentially flat as a result of the current sales volume and mix and the residual costs of manufacturing start up and ramp.
“Our accelerated investments in new products and acquisitions contributed to a record order book in every period of this year, but disrupted revenue generation and pressured our gross profit margins. Now that we are shifting our attention to fine-tuning these investments, we expect to leverage them into a valuable and sustainable first-mover advantage,” stated Reichental.
Factoring in its third quarter revenue shortfall and outlook for the remainder of the year, management trimmed its previous guidance for the full year 2014. Management now expects revenue in the range of $650 million to $690 million, and GAAP earnings per share of $0.18 to $0.28 and non-GAAP earnings per share in the range of $0.70 to $0.80.
“The same decisive actions that pressured our short term performance also delivered a much stronger portfolio of self-developed and acquired products and services. In the aggregate, we believe this positions us well to achieve our long-term targets,” concluded Reichental.
Preliminary Q3 2014 Results Conference Call and Webcast
3D Systems plans to hold a conference call and simultaneous webcast to discuss its preliminary financial results for the third quarter of 2014 on Wednesday, October 22, 2014, at 8:30AM Eastern Time.
Date: Wednesday, October 22, 2014
Time: 8:30AM Eastern Time
Listen via Internet: www.3dsystems.com/investor
Participate via telephone:
Within the US: 1-866-825-3209
Outside the US: 1-617-213-8061
Participant code: 24781050
Final Results Q3 and Nine Months 2014 Conference Call and Webcast
The company expects to release final third quarter and nine months financial results and to file its Form 10-Q on November 10, 2014. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Monday, November 10, 2014, at 8:30AM Eastern Time.
Date: Monday, November 10, 2014
Time: 8:30AM Eastern Time
Listen via Internet: www.3dsystems.com/investor
Participate via telephone:
Within the US: 1-877-407-8291
Outside the US: 1-201-689-8345
Participant code: 3D Systems
The recorded webcasts will be available beginning approximately two hours after each live presentation at www.3dsystems.com/investor.
About 3D Systems Corp.
3D Systems is pioneering 3D printing for everyone. 3DS provides the most advanced and comprehensive 3D design-to-manufacturing solutions including 3D printers, print materials and cloud sourced custom parts. Its powerful digital thread empowers professionals and consumers everywhere to bring their ideas to life in material choices including plastics, metals, ceramics and edibles. 3DS’ leading healthcare solutions include end-to-end simulation, training and integrated 3D planning and printing for personalized surgery and patient specific medical and dental devices. Its democratized 3D design and inspection products embody the latest perceptual, capture and touch technology. Its products and services replace and complement traditional methods with improved results and reduced time to outcomes. These solutions are used to rapidly design, create, communicate, plan, guide, prototype or produce functional parts, devices and assemblies, empowering customers to manufacture the future.
More information on the company is available at www.3DSystems.com.