Industry giant 3D Systems announced they were delaying the filing of their 2015 10-K tax form to the US government. What does this mean?
Of all the years 3D Systems has been in operation, their results from 2015 might be the most sought after, given the turmoil in the industry and their company during that period.
In 2015 the company abruptly shut down its consumer division, as well as parting ways with their longtime CEO. Since that time, the company has been under the direction of an interim CEO from their board of directors.
The question has been, what effect on their financials has these moves had?
3D Systems says this about the delay:
3D Systems Corporation (NYSE: DDD) announced today that it will delay filing its annual report on Form 10-K for the fiscal year ended December 31, 2015. The company will file a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission, which allows the company to extend the deadline to file its Form 10-K to March 15, 2016. The company noted that the delay in filing is related to the completion of work related to the goodwill and intangible asset impairment charge. The delayed filing has no impact on 3D Systems’ customers or the operations of the business.
It could be that they are simply behind in the work required to complete the 10-K form, or it could mean they’re doing something interesting behind the scenes. We can’t know the answer.
But we will hear the long-awaited results on March 15th. Until then, 3D Systems advises:
Expects to record non-cash goodwill and intangibles impairment charge of $510 million to $570 million
Expects to report revenue of approximately $183 million for the fourth quarter of 2015
The impairment charge may be related to the consumer products shutdown. As for the revenue, in 2014 their annual revenue was USD$653M, or approximately USD$163M per quarter, so their expectations seem comparable. But remember, this is only their revenue, and does not account for their expenses. Subtracting the expenses will reveal their profit and that’s what we’ll see in their 10-K form.
In 2014, even with their USD$653M in revenue, their net income was only USD$12M, so it wouldn’t take much to tip them on the negative side. On the other hand, by shutting down their consumer division, they removed a number of expenses.
Their announcement on March 15th will tell the story.
Via 3D Systems