3D Systems released its second quarter earnings report before opening bell this morning, posting non-GAAP earnings of 3 cents per share on revenue of $170.5 million, a 13% year over year increase on a reported basis. Analysts had been looking for earnings of 9 cents per share and revenue of $173.9 million.
3D Systems sees organic revenue decline
GAAP losses were 12 cents per share. Management noted a 5% decline in organic revenue year over year. In constant currency, revenue increased 2%.
3D Systems noted stronger demand for its products, which brought a 25% year over year increase in revenue from Europe, the Middle East and Africa. Revenue declined 9% in the Asia Pacific region as a result of the macroeconomic environment. The 3D printer manufacturer also noted “moderate” recovery in the Americas, which brought a 15% increase in sales in the region.
The company saw growth in its SLA, SLS and DMP 3D printers on the back of resumed purchasing in the Industrial sector, particularly among healthcare and aerospace customers. 3D Systems saw a sequential leveling-off of its MJP and CJP printers following several quarterly declines.
3D Systems management disappointed
“We are disappointed with our overall results,” 3D Systems President and CEO Avi Reichental said in a statement. “While a period of high growth enabled us to acquire strategic assets and build critical expertise, our rapid expansion permitted certain operating inefficiencies that we are currently addressing. Specifically, we are enhancing the quality of our products and services, accelerating synergy and cost reduction measures, driving process improvements and working closely with our channel partners to improve our sales operations and worldwide coverage.”
Currently 3D Systems is expanding its footprint in China by acquiring Easyway and has added new partners Konica Minolta Australia, HK 3D, and MLC CAD Systems. The company also secured contracts with the U.S. Navy, Honeywell and the Air Force Research Laboratory.
As of this writing, shares of 3D Systems were down 1.71% at $11.50 per share.
