After positive Q2 results for Stratasys and especially Materialise, 3D Systems Corporation reported 11% revenue growth, driving revenues to $176.6 million compared to $159.5 million in the second quarter of the previous year. This makes it the AM company that reported the highest quarterly revenues, beating out even current market leader Stratasys that closed at $170.2 million.
3D Systems also reported a GAAP loss of $0.08 per share in the second quarter of 2018 and 2017, and non-GAAP earnings of $0.06 per share in the second quarter of 2018 compared to non-GAAP earnings of $0.08 per share in the second quarter of 2017. The DDD stock value has been climbing since Q2 results were published (see chart below).
“We are pleased with our results for the second quarter, which were driven by strong revenue growth, including growth in both printer revenue and units as we continue to improve execution and are seeing the early returns on our investments in both innovation and go-to-market,” commented Vyomesh Joshi (VJ) chief executive officer, 3D Systems.
AM hardware sales driving business
Industrial AM Hardware is once again driving the market as the company reported 41% higher printer revenue on 37% higher printer unit sales (meaning higher value systems are being sold), coupled with 26% growth in healthcare solutions, and growth in materials and on-demand manufacturing. The relatively small GAAP loss is due to the impact from the mix of sales and investment in services and on-demand manufacturing offsetting cost improvements from ongoing supply chain cost reduction initiatives. R&D expenses decreased 7% from the second quarter of the prior year to $22.7 million as the company began to ship the previously announced new products. The company expects to continue to roll out new products as planned throughout 2018.
”We are very pleased with the progress we are seeing in the first half of 2018 from both our investments and the hard work by our employees,” commented John McMullen, executive vice president and chief financial officer. “We continue to make the investments we believe are critical for success while at the same time improving our cost structure over the long term.”
During the quarter, the company generated $10.7 million of cash in operations and ended the quarter with $119.3 million of unrestricted cash on hand.
“In addition to our performance in the second quarter, we are also very pleased to be partnering with Georg Fischer, a highly regarded leader in machining solutions, to create new integrated solutions and expand our global network and market opportunity. With our product rollouts in 2018, we believe our portfolio is second to none in regards to breadth and competitiveness, and we continue to be keenly focused on execution and operational efficiency to drive long-term growth and profitability,” concluded Joshi.