3D Systems Quarterly Results: Flat

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3D print giant 3D Systems announced their third quarter results and it seems they are holding at consistent levels. 

The company has seen 2016 differently from prior years, as it has now had a couple of quarters under the new CEO, Vyomesh Joshi, and also nearly a full year since abandoning their consumer products division in late 2015. 

The consumer division shutdown required some temporary expense, but now that decision seems financially valid as their expenses in the third quarter of 2016 are some 22% lower than the corresponding period in 2015 when the consumer products division was still active. 

In addition to the consumer initiative, there are rumors 3D System has also shut down other non-core initiatives, presumably to restore profitability. But is this working? 

Sort of. 

For the first 3 quarters of 2016, we find their revenue down about 3.1%, while their expenses were down 4.4%. That’s good! However, after account for all other financial aspects, the company reported a net loss of USD$43.6M in the period. But again, that’s actually improved over the prior period, where they posted a 3Q2015 loss of USD$59M. 

What I read into this is simply that 3D Systems is still in the process of optimizing their operations. They’ve made some cuts and have reorganized a number of business aspects. 

However, it also seems that “optimizing” is not necessarily growing the business. For that you need new, exciting products. I suspect that is probably the next step for 3D Systems after they’ve cleaned up things. 

In the interim, it seems investors are a bit impatient, as 3D Systems stock price took a significant drop a few weeks ago, as did their main rival, Stratasys. 

Via 3D Systems and SEC

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