UPDATE: 3D Systems (DDD) Misses Q4 EPS by 4c; Issues In-Line FY15 Outlook

February 26, 2015 8:00 AM EST

(Updated - February 26, 2015 8:03 AM EST)

3D Systems (NYSE: DDD) reported Q4 EPS of $0.21, $0.04 worse than the analyst estimate of $0.25. Revenue was $18.4 million, versus the consensus of $202.3 million.

"We are disappointed that we were not able to fully capitalize on the strength of our portfolio in all geographies equally, but are very pleased with the impressive growth rate that our EMEA channel delivered in the face of adverse foreign currency rates," said Avi Reichental, 3DS' President and Chief Executive Officer. "We are taking decisive steps to improve the productivity and coverage of our North American and APAC channels to the level of our EMEA region." - See more at: http://globenewswire.com/news-release/2015/02/26/710216/10122089/en/3D-Systems-Reports-Record-Revenue-for-Fourth-Quarter-and-Full-Year-2014.html#sthash.EKUiwBOo.dpuf

Management expects several transitional factors to constrain its top line growth-rate during the first half of 2015.

  • The company entered 2015 at a lower revenue run-rate than previously expected as a result of delayed new products and gaps in its North American channel performance, and expects that it may take several periods to make up this shortfall.
  • The company expects that the planned discontinuation of several legacy products and ongoing pruning of lower margin services will reduce historical revenue contributions.
  • Management anticipates ongoing foreign currency headwinds well into the second half of 2015.

Management expects 2015 revenue to be in the range of $850 million to $900 million, with a greater percentage of revenue generated during the second half, GAAP earnings per share in the range of $0.35 to $0.45 and non-GAAP earnings per share to be in the range of $0.90 to $1.10.

The Street sees FY15 revs of $873.2 million and EPS of $1.02. The Street is also looking for Q1 EPS of $0.21 with revenue of $194.2 million.

Management plans to keep its 2015 capital expenditures at 3% of revenue and expects to moderate its M&A activities as it decisively shifts its focus towards leveraging recently acquired assets to generate greater profitability progressively throughout 2015.

"We are in the early innings of mainstreaming adoption for our products and services and believe that the effective and disciplined investments we have made over the past 15 months position us extremely well for the open-ended opportunities in front of us," continued Reichental. "Having assembled the technological building blocks, infrastructure, talents and partners required to scale our business and extend our first mover advantage in key verticals, we are now poised to strengthen our execution to create greater value faster."

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



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