3D Systems shares fell 1.28% to $23.90 in pre-market trading Wednesday after the company released its fiscal first-quarter results. On April 24, the 3D printing firm had reported poor preliminary results, so the official figures did not come as a big surprise. 3D Systems said its revenue rose a modest 9% YoY to $160.7 million in March quarter.
3D Systems EPS edges part consensus estimate
That’s slightly higher than the company’s preliminary projections of $158-$160 million revenue. Before the preliminary results were announced on April 24, analysts were expecting $182.78 million in revenue. But they trimmed their estimates to $161.78 million in the past two weeks. It means 3D Systems’ Q1 revenue also missed the revised consensus estimate.
The Rock Hill-based company said it incurred a GAAP net loss of $13.2 million or 12 cents a share. Non-GAAP earnings came in at $5.2 million or 5 cents a share, compared to the consensus estimate of 4 cents a share. 3D Systems had generated $147.76 million revenue and 15 cents in EPS in the same quarter a year ago.
3D Systems CEO Avi Reichental said that currency headwinds and lower oil prices hurt the company’s revenue. A steep decline in oil prices forced many automotive, healthcare and aerospace clients to delay their purchases. However, its gross margins improved sequentially to 49.1% during March quarter. 3D Systems ended the quarter with $200 million in cash, after paying $78 million for Cimatron acquisition.
3D Systems’ operating expenses jump 46%
The company said revenue from direct metal printers rose 39% YoY, while healthcare revenue jumped 38% from the comparable quarter a year ago. Services revenue went up 31%. But the biggest driver was consumer segment, where revenue rose 65% and the number of printers sold skyrocketed 169%. 3D Systems said revenue from the Americas rose 27% and Asia Pacific revenue was up 20% YoY. But its revenue from Europe, Middle-East and Africa increased only 2%.
Operating expenses increased 46% to $97 million, while R&D expenses shot up 29%. 3D Systems said it had withdrawn its previous full-year guidance due to “marketplace uncertainties,” but did not provide a new guidance.