3D Systems, Inc. (DDD) Misses Q2 EPS by 2c; Raises FY Rev Guidance

July 31, 2014 8:34 AM EDT
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Price: $20.12 --0%

EPS Growth %: +525.0%

Financial Fact:
Total revenues: 12K

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3D Systems, Inc. (NYSE: DDD) reported Q2 EPS of $0.16, $0.02 worse than the analyst estimate of $0.18. Revenue for the quarter came in at $151.5 million versus the consensus estimate of $162.3 million.

Management expects 2014 revenue to be in the range of $700 million to $740 million and its GAAP earnings per share to be in the range of $0.44 to $0.56 and non-GAAP earnings per share to be in the range of $0.73 to $0.85. (consensus $713.8M and $0.81).

"We are pleased that unit sales of our design and manufacturing printers increased 126% and helped fuel a 30% increase in materials revenue. We believe that the record order book that we exited the quarter with reflects the vibrancy of our business and our organic growth trajectory," said Avi Reichental, 3DS' President and Chief Executive Officer.

Gross profit margin shouldered the transitional effects of concentrated new product launches as well as the absorption of legacy products obsolescence and manufacturing expansion costs. Together, these factors and changed mix compressed gross profit margin some 400 basis points from the prior year's quarter to 47.8%.

"While transitional forces temporarily pressured our gross profit margin, a detailed examination of the specific drivers, confirms that the fundamentals of our business are intact and our gross profit margins are poised to rebound and resume their expansion trajectory," continued Reichental.

The company effectively kept its operating expenses flat, on a sequential basis, even with continued investments in R&D, sales, marketing and manufacturing capacity. The company generated $19.0 million of cash from operations during the second quarter as returns on its recent investments began to materialize and enterprise-wide integration synergies continued to accrue. The company ended the quarter with $570.3 million cash on hand, inclusive of an equity raise completed earlier in the quarter.

"As we advance our market leadership and scale in key verticals through our increased investments, our progress is ahead of schedule and our enterprise-wide synergies are already generating substantial cash from operations," continued Reichental.

For earnings history and earnings-related data on 3D Systems, Inc. (DDD) click here.



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