3D Systems released its third quarter earnings report before opening bell this morning, posting earnings of 1 cent per share and revenue of $151.6 million, a 9% year over year decline or a 3% decline in constant currency. Analysts had been expecting earnings of 8 cents per share and revenue of $184.6 million.
3D Systems sees product sales fall
3D Systems’ GAAP losses were 29 cents per share. The company’s gross margin fell 90 basis points year over year to 46.9%, mostly due to negative impacts from its consumer products. Product sales plunged from $111.9 million last year to $87.7 million this year, while services revenue increased from $55 million to $63.8 million.
“We are disappointed with our overall results and the lower revenue from our 3D printing products and services, which we believe were negatively impacted by continued challenging market conditions that extended customers’ capital investment cycles and reduced demand across all geographies,” 3D Systems Interim President, CEO, and Chief Legal Officer Andrew Johnson said in a statement. “However, we are pleased that our 3D healthcare simulators and services and 3D software contributed favorably to our results.”
3D Systems expands its reach
During the third quarter, 3D Systems expanded its reach in healthcare through new cardiology training and surgical planning modules. The company also acquired Methods Machine Tools as a channel partner and teamed up with GPI Prototype and Manufacturing Services on its Direct Metal Printers.
As of this writing, shares of 3D Systems were off slightly at $10.42 per share in premarket trades.