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3D Systems Corporation 3Q17 Earnings Report Tanks Shares

3D Systems Corporation (NYSE:DDD) 3Q17 earnings were released after closing bell, and the company posted a surprise loss. Non-GAAP losses came in at 20 cents per share on $152.9 million in sales. Wall Street had been looking for earnings of 12 cents per share on $162.5 million in revenue. In last year’s third quarter, the 3D printer maker reported non-GAAP earnings of 14 cents per share on $156.4 million in sales.

3D Systems 3Q17 earnings

3D Systems 3Q17 earnings

The 3D Systems 3Q17 earnings report revealed GAAP losses of 34 cents per share, compared to losses of 19 cents per share in the year-ago quarter. The gross margin came in at 38.3% for the quarter, including a $12.9 million write-down for products and parts following a portfolio and inventory review. The gross margin in the year-ago quarter was 44.1%. 3D Systems used $700,000 in cash for operations and ended the quarter with $138.3 million in cash on hand.

“While third quarter results did not meet our expectations, we believe actions taken during the quarter both organizationally and operationally better position the company for long term success,” CEO Vyomesh Joshi¬†said in a statement in the 3D Systems 3Q17 earnings release.

The company reported strong demand among healthcare and industrial customers and strong execution in Europe, the Middle East and Africa. However, softer sales in the Americas and Asia Pacific region more than offset those strengths.

3D Systems withdraws guidance

The company also withdrew its guidance as management focused on building for “long term growth, profitability and success,” which it said is making it difficult to predict future results. 3D Systems said the work includes “solving for legacy issues” and addressing execution.

“We have increased investments and resources to resolve legacy quality and reliability issues faster and have implemented organizational changes to continue to improve execution. We have made significant progress in many areas over the first nine months of this year and are taking additional actions necessary to position the company for long term success,” Joshi added.

Following the 3D Systems 3Q17 earnings release, the company’s stock plunged by as much as 16% to $10.45 per share in after-hours trades.