3D printing giant 3D Systems announced their second quarter results and there were few changes, but that’s about what I’d expect to see.
Specifically, they explained their revenues were down overall, although their healthcare and software revenues were up. The problem was sales of 3D printers, which were still down, resulting in a 7% decrease for the period.
The good news was that their expenses have been somewhat optimized and thus their profit margin was over 50%. It seems clear that the closing of their consumer division last fall is now paying dividends.
In the quarter the company also spent USD$20.9M on research and development, approximately 25% of their total expenses. However, this was still decreased by 19% “due to timing of product development.”
While the company made money (USD$12.9M) on operations during the second quarter, they posted a loss after accounting for other non-operational charges as per GAAP accounting rules. This is not an immediate concern because they have over USD$175M in the bank to tide them over to their new structure, whatever that might be.
And this leads to the question of transition. The new CEO, Vyomesh Joshi, is still making changes and we cannot expect results to appear immediately. While he’s switched out the management group, there are deeper changes no doubt afoot within the company to reposition for the future that we haven’t heard about yet.
And then there’s the new competition from the likes of HP, Carbon, Ricoh and existing competition from Stratasys. There’s never been a more competitive environment at the top of the 3D printing world and 3D Systems will have to fit in somehow.
Via 3D Systems