3D Systems Corporation (NYSE:DDD) released the earnings results from its third quarter before opening bell this morning, posting earnings of 18 cents per share on revenue of $166.9 million. Analysts had been expecting earnings per share of 17 cents on $167.7 million.
3D Systems see higher demand in manufacturing, design printers
In this morning’s earnings report 3D Systems said stronger demand resulted in a 57% increase in sales of its manufacturing and design 3D printers. However, management expressed disappointment that they did not “fully capitalize on the robust demand” for their consumer and direct metal products.
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President and CEO Avi Reichental said they were unable to demand the products as quickly as they had previously expected. The executive added that they have resolved the “availability gaps” and that they expected to see their revenue growth rate improve further.
3D Systems’ revenue by segment
The 3D printer manufacturer reported a 1215% increase in healthcare revenue, which rose to $37.4 million due to added capabilities and services. The company saw a 29% increase in services revenue due to the expansion of its “expertise and footprint.
Revenue from the company’s design and manufacturing rose improved by 27%, rising to $155.2 million due to a 57% increase in unit volume. 3D Systems also saw its installed base improve and greater printer utilization, which resulted in an 18% growth in materials revenue.
The company also reported $11.8 million in consumer revenue, which was held by delays in product availability. However, 3D Systems reported higher bookings, which increased its consumer backlog to $8.3 million in the quarter.
On a sequential basis, 3D Systems reported a gross margin improvement in its materials segment, which rose to 73.1% in the quarter. The company’s Quickparts gross margin rose to 44.7% in spite of a drag from acquisitions during the third quarter. Not counting those gains, the consolidated gross margin was flat sequentially at 47.8% due to the sales mix and volume and residual costs from ramping up manufacturing.