3D Systems Reports Fourth Quarter and Full Year 2017 Financial Results

ROCK HILL, S.C., March 14, 2018 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today its financial results for the fourth quarter and full year ended December 31, 2017.

For the fourth quarter of 2017, the company reported seven percent revenue growth to $177.3 million compared to $165.9 million in the fourth quarter of the previous year. The company reported a fourth quarter GAAP loss of $0.08 per share compared to earnings of $0.05 per share in the prior year, and non-GAAP earnings of $0.05 per share compared to non-GAAP earnings of $0.15 per share in the fourth quarter of 2016.

“We are pleased with the growth in revenue driven by healthcare, materials, software and on demand manufacturing, as well as more balanced regional execution experienced in the fourth quarter,” commented Vyomesh Joshi (VJ), chief executive officer, 3D Systems. “While we still have work to do, we made significant progress last year, and we believe our investments in go-to-market combined with improved processes and better execution have started to show returns and position the company well going forward.”

Demand across categories fueled growth during the fourth quarter, driven by strong execution in EMEA and improved execution in the Americas and Asia. The company reported revenue growth in healthcare, materials, software and on demand manufacturing as well as higher printer unit sales in the fourth quarter.

The company reported gross profit margin of 48.2 percent for the fourth quarter of 2017 compared to 50.0 percent in the fourth quarter of the prior year. Gross profit cost reduction initiatives in 2017 were offset by additional investments in services and on demand manufacturing.   

For the fourth quarter of 2017, operating expenses were $91.2 million compared to $78.8 million in the prior year period. SG&A expenses increased 18 percent to $68.2 million, which included continued investment in go-to-market and IT transformation. R&D expenses increased nine percent over the fourth quarter of 2016 to $23.0 million, including continued investments in support of several new products the company unveiled in November 2017, which are planned to be commercially available over the coming months.

”We continued our strategic investments in organizational and operational improvements which we believe are critical for long term success,” commented John McMullen, executive vice president and chief financial officer. “We made progress in many areas this year, from better analytics, processes and operational cadence to IT infrastructure and supply chain optimization. We continue to be focused on the decisions and actions needed to drive appropriate cost structure, while at the same time, positioning the company for long term growth.”

During the quarter, the company generated $8.2 million of cash from operations and ended the quarter with $136.3 million of cash on hand.

For the full year 2017, revenue increased two percent to $646.1 million compared to $633.0 million in 2016. The company reported a GAAP loss of $0.59 per share for the full year 2017 compared to a loss of $0.35 per share in the prior year, and reported a non-GAAP loss of $0.02 per share for the full year 2017 compared to a non-GAAP earnings of $0.46 per share in 2016.

“We made significant progress in 2017 to stabilize and turn around the company, and we put in place the foundation for scalable growth. This is a multi-year transformation process, but we are pleased with the progress we have made thus far to position the company for long-term growth and profitability. We are focused on execution, driving operational efficiencies and bringing our new innovative and disruptive products to market to drive the shift to 3D production,” concluded Joshi.

Q4 2017 Conference Call and Webcast
The company expects to file its Form 10-K for the twelve months ended December 31, 2017 with the Securities and Exchange Commission on March 14, 2018. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Wednesday, March 14, 2018, at 4:30 p.m. Eastern Time. 

Date: Wednesday, March 14, 2018
Time: 4:30 p.m. Eastern Time
Listen via Internet: www.3dsystems.com/investor
Participate via telephone:

Within the U.S.:  1-877-407-8291
Outside the U.S.:  1-201-689-8345

A replay of the webcast will be available approximately two hours after the live presentation at www.3dsystems.com/investor.

Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology.  Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company.  The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.

Presentation of Information in This Press Release
To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, the company reported non-GAAP measures excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses, stock-based compensation expense, litigation settlements and charges related to strategic decisions and portfolio realignment. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.  

About 3D Systems
3D Systems provides comprehensive 3D products and services, including 3D printers, print materials, on-demand manufacturing services and digital design tools. Its ecosystem supports advanced applications from the product design shop to the factory floor to the operating room. 3D Systems’ precision healthcare capabilities include simulation, Virtual Surgical Planning, and printing of medical and dental devices as well as patient-specific surgical instruments. As the originator of 3D printing and a shaper of future 3D solutions, 3D Systems has spent its 30 year history enabling professionals and companies to optimize their designs, transform their workflows, bring innovative products to market and drive new business models.

More information on the company is available at  www.3dsystems.com

Tables Follow


3D Systems Corporation 
Unaudited Condensed Consolidated Balance Sheets 
December 31, 2017 and 2016   
    December 31,   December 31,  
  (in thousands, except par value)   2017   2016  
Current assets:              
Cash and cash equivalents    $   136,344     $   184,947    
Accounts receivable, net of reserves — $10,258 (2017) and $12,920 (2016)       129,879         127,114    
Inventories       103,903         103,331    
Insurance proceeds receivable 1       50,000         —    
Prepaid expenses and other current assets        18,296         17,558    
Total current assets        438,422         432,950    
Property and equipment, net        97,521         79,978    
Intangible assets, net        98,783         121,501    
Goodwill        230,882         181,230    
Long term deferred income tax asset       4,020         8,123    
Other assets, net        27,136         25,371    
Total assets    $   896,764     $   849,153    
Current liabilities:              
Current portion of capitalized lease obligations    $   644     $   572    
Accounts payable        55,607         40,514    
Accrued and other liabilities        65,899         55,187    
Accrued litigation settlement 1       50,000         —    
Customer deposits        5,765         5,857    
Deferred revenue        29,214         28,275    
Total current liabilities        207,129         130,405    
Long term portion of capitalized lease obligations        7,078         7,587    
Long term deferred income tax liability        8,983         17,601    
Other liabilities        48,754         57,988    
Total liabilities        271,944         213,581    
Redeemable noncontrolling interests       8,872         8,872    
Commitments and contingencies              
Stockholders’ equity:              
Common stock, $0.001 par value, authorized 220,000 shares; issued 117,025 (2017) and 115,113
      115         115    
Additional paid-in capital        1,326,250         1,307,428    
Treasury stock, at cost — 2,219 shares (2017) and 1,498 shares (2016)       (8,203 )       (2,658 )  
Accumulated deficit       (677,772 )       (621,787 )  
Accumulated other comprehensive loss       (21,536 )       (53,225 )  
Total 3D Systems Corporation stockholders' equity       618,854         629,873    
Noncontrolling interests       (2,906 )       (3,173 )  
Total stockholders’ equity        615,948         626,700    
Total liabilities, redeemable noncontrolling interests and stockholders’ equity   $   896,764     $   849,153    
1 The Company recorded a current liability and an offsetting insurance proceeds receivable related to an agreed upon $50,000 settlement in connection with the Company's securities litigation.  

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