ROCK HILL, S.C., May 02, 2018 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today its financial results for the first quarter ended March 31, 2018.

For the first quarter of 2018, the company reported six percent revenue growth to $165.9 million compared to $156.4 million in the first quarter of the previous year. The company reported a first quarter 2018 GAAP loss of $0.19 per share compared to a loss of $0.09 per share in the prior year, and first quarter 2018 non-GAAP loss of $0.03 per share compared to non-GAAP earnings of $0.06 per share in the first quarter of 2017.

“We are pleased with our revenue in the first quarter, which was driven by printers, healthcare and software,” commented Vyomesh Joshi (VJ), chief executive officer, 3D Systems. “While we still have work to do, we believe our investments in go-to-market, process improvements and better execution worldwide are starting to show returns. We remain excited about the new products we plan to bring to market throughout the year and the incremental opportunity we believe they will provide for long term growth.”

The company reported 24 percent higher printer revenue on 44 percent higher printer unit sales as well as growth in software, on demand manufacturing and healthcare solutions.

The company reported GAAP gross profit margin of 46.9 percent for the first quarter of 2018 compared to 51.3 percent in the first quarter of the prior year. The impact of mix of sales and continued investment in services and on demand manufacturing offset cost reductions achieved from ongoing supply chain cost reduction initiatives.

For the first quarter of 2018, GAAP operating expenses were $95.4 million compared to $89.3 million in the prior year period. SG&A expenses increased 5 percent to $69.5 million, which included continued investment in go-to-market and IT transformation. R&D expenses increased 13 percent over the first quarter of 2017 to $25.9 million, including continued investments in support of the previously announced new products the company plans to start shipping throughout 2018.

”We have made significant progress in many areas of the company, and we continue to make strategic investments in organizational and operational improvements which we believe are critical for long term success,” commented John McMullen, executive vice president and chief financial officer. “We remain committed to improving our cost structure over the long term. In line with that, during the first quarter, we put in place a cost optimization plan to drive efficiencies, continue to focus resources around our strategic priorities, and leverage our IT investments.”

During the quarter, the company used $1.5 million of cash in operations and ended the quarter with $121.6 million of unrestricted cash on hand.

“We believe 2018 is a corner turn year in our multi-year turnaround and transformation process. We are focused on execution, operational efficiency and bringing our new solutions to market to drive long-term growth and profitability,” concluded Joshi.

Q1 2018 Conference Call and Webcast
The company expects to file its Form 10-Q for the quarter ended March 31, 2018 with the Securities and Exchange Commission on May 2, 2018. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results on Wednesday, May 2, 2018, at 4:30 p.m. Eastern Time.

Date: Wednesday, May 2, 2018
Time: 4:30 p.m. Eastern Time
Listen via Internet: 
Participate via telephone:
Within the U.S.:  1-877-407-8291
Outside the U.S.:  1-201-689-8345

A replay of the webcast will be available approximately two hours after the live presentation at

Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology.  Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company.  The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.

Presentation of Information in This Press Release
To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, the company reported non-GAAP measures excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses, stock-based compensation expense, litigation settlements and charges related to strategic decisions and portfolio realignment. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.

About 3D Systems
3D Systems provides comprehensive 3D products and services, including 3D printers, print materials, on-demand manufacturing services and digital design tools. Its ecosystem supports advanced applications from the product design shop to the factory floor to the operating room. 3D Systems’ precision healthcare capabilities include simulation, Virtual Surgical Planning, and printing of medical and dental devices as well as patient-specific surgical instruments. As the originator of 3D printing and a shaper of future 3D solutions, 3D Systems has spent its 30 year history enabling professionals and companies to optimize their designs, transform their workflows, bring innovative products to market and drive new business models.

More information on the company is available at 

Tables Follow

3D Systems Corporation
Unaudited Condensed Consolidated Balance Sheets
March 31, 2018 and December 31, 2017

(in thousands, except par value)March 31, 2018 December 31, 2017
Current assets:   
Cash and cash equivalents$121,607  $136,344 
Accounts receivable, net of reserves — $11,246 (2018) and $10,258 (2017)134,470  129,879 
Inventories110,383  103,903 
Insurance proceeds receivable50,000  50,000 
Prepaid expenses and other current assets22,761  18,296 
Total current assets439,221  438,422 
Property and equipment, net101,675  97,521 
Intangible assets, net91,800  98,783 
Goodwill235,323  230,882 
Deferred income tax asset3,965  4,020 
Other assets, net25,674  27,136 
Total assets$897,658  $896,764 
Current liabilities:   
Current portion of capitalized lease obligations$661  $644 
Accounts payable55,405  55,607 
Accrued and other liabilities66,442  65,899 
Accrued litigation settlement50,000  50,000 
Customer deposits5,718  5,765 
Deferred revenue39,694  29,214 
Total current liabilities217,920  207,129 
Long term portion of capitalized lease obligations6,932  7,078 
Deferred income tax liability8,031  8,983 
Other liabilities46,665  48,754 
Total liabilities279,548  271,944 
Redeemable noncontrolling interests8,872  8,872 
Commitments and contingencies   
Stockholders’ equity:   
Common stock, $0.001 par value, authorized 220,000 shares; issued 117,180 (2018) and 117,025 (2017)116  115 
Additional paid-in capital1,333,378  1,326,250 
Treasury stock, at cost — 2,358 shares (2018) and 2,219 shares (2017)(9,041) (8,203)
Accumulated deficit(698,157) (677,772)
Accumulated other comprehensive loss(14,137) (21,536)
Total 3D Systems Corporation stockholders' equity612,159  618,854 
Noncontrolling interests(2,921) (2,906)
Total stockholders’ equity609,238  615,948 
Total liabilities, redeemable noncontrolling interests and stockholders’ equity$897,658  $896,764 

3D Systems Corporation
Unaudited Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss)
Quarter Ended March 31, 2018 and 2017
 Quarter Ended March 31,
(in thousands, except per share amounts)2018 2017
Products$105,125  $97,039 
Services60,763  59,392 
Total revenue165,888  156,431 
Cost of sales:   
Products55,093  47,257 
Services32,913  28,988 
Total cost of sales88,006  76,245 
Gross profit77,882  80,186 
Operating expenses:   
Selling, general and administrative69,497  66,405 
Research and development25,883  22,852 
Total operating expenses95,380  89,257 
Loss from operations(17,498) (9,071)
Interest and other (expense) income, net(1,525) 201 
Loss before income taxes(19,023) (8,870)
Provision for income taxes1,954  1,041 
Net loss(20,977) (9,911)
Less: net income (loss) attributable to noncontrolling interests(16) 60 
Net loss attributable to 3D Systems Corporation$(20,961) $(9,971)
Net loss per share available to 3D Systems Corporation common stockholders - basic and diluted$(0.19) $(0.09)

3D Systems Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31, 2018 and 2017
 Three Months Ended March 31,
(in thousands)2018 2017
Cash flows from operating activities:   
Net loss$(20,977) $(9,911)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:   
Depreciation and amortization15,186  14,973 
Stock-based compensation7,128  7,131 
Impairment of property and other assets38  53 
Impairment of cost method investments1,373   
Provision for bad debts1,017  155 
Provision for deferred income taxes(898) (1,069)
Changes in operating accounts, net of acquisitions:   
Accounts receivable(3,774) 5,672 
Inventories(5,571) (4,116)
Prepaid expenses and other current assets(3,667) 41 
Accounts payable(647) (691)
Accrued and other current liabilities12,597  12,403 
All other operating activities(3,344) (5,253)
Net cash (used in) provided by operating activities(1,539) 19,388 
Cash flows from investing activities:   
Cash paid for acquisitions, net of cash assumed  (34,291)
Purchases of property and equipment(10,764) (5,620)
Additions to license and patent costs(230) (280)
Proceeds from disposition of property and equipment  24 
Net cash used in investing activities(10,994) (40,167)
Cash flows from financing activities:   
Payments on earnout consideration(2,675) (3,206)
Payments related to net-share settlement of stock-based compensation(837) (1,088)
Repayment of capital lease obligations(128) (120)
Net cash used in financing activities(3,640) (4,414)
Effect of exchange rate changes on cash, cash equivalents and restricted cash1,438  1,926 
Net decrease in cash, cash equivalents and restricted cash(14,735) (23,267)
Cash, cash equivalents and restricted cash at the beginning of the period (a)136,831  185,248 
Cash, cash equivalents and restricted cash at the end of the period (a)$122,096  $161,981 

(a) The amounts for cash and cash equivalents shown above include restricted cash of $489 and $318 as of March 31, 2018 and 2017, respectively, and $487 and $301 as of December 31, 2017, and 2016, respectively, which were included in other assets, net in the condensed consolidated balance sheets.

3D Systems Corporation
Schedule 1
Loss Per Share
Quarter Ended March 31, 2018 and 2017
 Quarter Ended March 31,
(in thousands, except per share amounts)2018 2017
Numerator for basic and diluted net loss per share:   
Net loss attributable to 3D Systems Corporation$(20,961) $(9,971)
Denominator for basic and diluted net loss per share:   
Weighted average shares111,819  111,289 
Net loss per share - basic and diluted$(0.19) $(0.09)

3D Systems Corporation
Schedule 2
Unaudited Reconciliations of GAAP to Non-GAAP Measures
Quarter Ended March 31, 2018 and 2017
 Quarter Ended March 31,
(in millions, except per share amounts)2018 2017
GAAP net loss attributable to 3D Systems Corporation$(21.0) $(10.0)
Amortization, stock-based compensation & other 115.2  16.0 
Legal and acquisition-related 20.5  1.1 
Cost optimization plan 30.5   
Impairment of cost-method investments 41.4   
Non-GAAP net income (loss) attributable to 3D Systems Corporation$(3.4) $7.1 
Non-GAAP net income (loss) per share available to 3D Systems common stock holders - basic and diluted 5$(0.03) $0.06 
1 For the quarter ended March 31, 2018, the adjustment included $0.1 in COGS and $15.1 in SG&A. For the quarter ended March 31, 2017, the adjustment included $0.1 in COGS and $15.9 in SG&A.
2 For the quarter ended March 31, 2018, the adjustment included $0.5 in SG&A. For the quarter ended March 31, 2017, the adjustment included $1.1 million in SG&A.
3 For the quarter ended March 31, 2018, the adjustment included $0.2 in COGS, $0.3 in SG&A, and approximately $32 thousand in R&D.
4 The Company has minority investments of less than 20% ownership in enterprises that benefit from, or are powered by its technology portfolio. The value of each of these investments is assessed periodically, and impairment recorded when required. For the quarter ended March 31, 2018, the adjustment included $1.4 in interest and other expense, net. The Company excluded this amount as it is not related to on-going operations, and intends to exclude these impairment amounts from non-GAAP net income going forward.
5 Denominator based on weighted average shares used in the GAAP EPS calculation.