ROCK HILL, SC, Apr 27, 2015 – 3D Systems Corp. announced that it anticipates its first quarter revenue to be in the range of $158M to $160M. The company expects to report a GAAP loss in the range of $0.13 per share to $0.15 per share and non-GAAP earnings in the range of $0.02 per share to $0.04 per share. The company expects to report that it ended the quarter with approximately $200M of available cash.
These preliminary results are based on current expectations, subject to quarter-end closing adjustments, and actual results may differ.
The company believes that economic weaknesses attributable to several factors, including the decline in the Euro and Yen relative to the US Dollar and the aftershock of lower oil prices, caused the majority of its aerospace, automotive and healthcare customers to curb new printer purchases during the quarter and curtail their materials and service purchases. In addition, certain metal and nylon applications and performance issues delayed the company’s ability to sell additional printers during the quarter. The combined impact of these factors compressed the company’s expected revenue growth for the quarter to 9% over the comparable quarter of 2014, or 17% at first quarter 2014 exchange rates. A stronger US Dollar reduced total quarterly revenues by approximately $12M at comparable Q1 2014 currency rates.
“We were surprised and disappointed by the abrupt interruption in customer demand late in the quarter from several economic factors that we believe caused our industrial customers to defer their planned investments,” said Avi Reichental, president and chief executive officer, 3DS. “We believe the combination of our expanding international business and growing concentration of manufacturing customers made us more vulnerable to the steep currencies decline relative to the US Dollar and the aftermath of lower oil prices that curbed aerospace and automotive expenditures.”
The company expects to report positive contributions from most of its revenue categories, including software, services and consumer, over the comparable 2014 period. However, stronger consumer products performance that yielded a 169% consumer printer units increase and continued direct metal demand that generated 46% metal printer units growth, were not enough to make up for the revenue shortfall from postponed industrial customers’ purchases.
“Several weeks into the second quarter, bookings are ahead of the same period in the first quarter,” continued Reichental. “Specifically, OEMs that paused to assess their own exposure to foreign currency and macroeconomic impacts are beginning to resume their capital investments and are making the purchases they deferred during the first quarter.”
The company expects to report that its consolidated gross profit margin for the quarter expanded 110 basis points sequentially to approximately 49.0% despite drag from lower revenue and adverse mix and rate.
Given current uncertainties from continued macroeconomic pressures and foreign currency headwinds, management is undertaking a comprehensive evaluation of its full year guidance and plans to update investors during its scheduled first quarter 2015 earnings conference call on May 6, 2015.
“While the current economic climate disrupted our planned cadence for 2015, we believe that the fundamentals of our business and the strength of our portfolio remained intact. We are encouraged by the overall strengthening of our order patterns thus far during the second quarter and are accelerating our planned integration, productivity and efficiency measures without impairing future growth,” concluded Reichental.
Final Results Q1 Conference Call and Webcast
The company expects to release final first quarter and to file its Form 10-Q with the Securities and Exchange Commission on May 6, 2015. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Wednesday, May 6, 2015, at 8:30AM Eastern Time.
Date: Wednesday, May 6, 2015
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
The recorded webcasts will be available beginning approximately two hours after each live presentation at www.3dsystems.com/investor.
About 3D Systems
3D Systems provides the most advanced and comprehensive 3D digital design and fabrication solutions available today, including 3D printers, print materials and cloud-sourced custom parts. Its powerful ecosystem transforms entire industries by empowering professionals and consumers everywhere to bring their ideas to life using its vast material selection, including plastics, metals, ceramics and edibles. 3DS’ leading personalized medicine capabilities save lives and include end-to-end simulation, training and planning, and printing of surgical instruments and devices for personalized surgery and patient specific medical and dental devices. Its democratized 3D digital design, fabrication and inspection products provide seamless interoperability and incorporate the latest immersive computing technologies. 3DS’ products and services disrupt traditional methods, deliver improved results and empower its customers to manufacture the future now.
Today its comprehensive range of 3D printers is the industry’s benchmark for production-grade manufacturing in aerospace, automotive, patient specific medical device and a variety of consumer, electronic and fashion accessories.
More information on the company is available at www.3dsystems.com.