2019 3D Systems’ total revenue for the third quarter was $155.3 million (approximately RMB 1.08 billion) compared to $164.5 million for the same period last year.
Headmap Source: 3D Systems official website
Editor’s note: This article comes from the WeChat public number “Antarctic Bear 3D Printing” (ID: dddyin), the author of the Antarctic Bear 3D printing, the original title “3D printer market is weak, 3D Systems third quarter revenue of 1 billion yuan, medical health and The material business has grown considerably, with a slight cut.
On November 4, 2019, Antarctic Bears learned that 3D Systems, the world’s leading 3D printer manufacturer, released its third quarter financial report for 2019. According to the report, 3D Systems’ total revenue for the third quarter of 2019 was $155.3 million (approximately RMB 1.08 billion) compared to $164.5 million for the same period last year; operating loss was $11.9 million, equivalent to $0.15 per share, while 2018 The operating loss for the third quarter of the year was $11 million, equivalent to $0.10 per share.
Image Source: 3D Systems Third Quarter 2019 Financial Report
From the income component, the main income of Q3 comes from medical health and material sales. During this period, revenue from sales of 3D printers decreased by 17.2% compared to the third quarter of 2018, due to “the timing of large enterprise customers and the weakness of the macro industrial environment.”
Vyomesh “VJ” Joshi, President and CEO of 3D Systems, spoke to investors and analysts at a performance conference call: “For the rest of the year, we will continue to focus on profitability and cash income. We are improving the company’s lean management and profitability.
“We increased our focus on cost structure in 2019 and reduced non-GAAP operating expenses by 8% in the first nine months. Continue to cut costs in the fourth quarter so that in this uncertain environment The company makes rational adjustments. Looking ahead, we believe that our drive to innovative production processes, including hardware platforms, materials, software and professional services, will achieve significant revenue growth by 2020.”
Materials & Healthcare Business Growth Drives Revenue
3D Systems typically divides revenue into two parts: products and services. In addition, it further subdivides the revenue generated by each of its products or services, namely printer sales, materials, healthcare, on-demand manufacturing and software.
The report shows that 3D Systems product revenue was $94.9 million in the third quarter of 2019, compared to $99.9 million in the third quarter of 2019. Service revenue in the third quarter of 2019 was $60.8 million, compared to $200.8 million in 2018. The third quarter was $64.5 million.
In the market segment, the health care sector reported the highest revenue for all products and services reported in the third quarter of 2019. For the period ended September 30, 2019, 3D Systems Healthcare reported revenue of $56.4 million, a year-on-year increase of 6.3%, and revenue for the first half of 2018 was $53.1 million. In a conference call with Todd Booth, Executive Vice President and Chief Financial Officer of 3D Systems, “We are pleased with the overall demand trends for virtual surgery plans, medical simulators and advanced manufacturing.”
The second largest contribution was 3D Systems’ materials division, which was $41.4 million, compared to $40.3 million in the third quarter of 2018. Since the last earnings conference call in August 2019, VJ has emphasized that the company has released eight new materials for the Figure 4 platform, including BLK 10 and HI TEMP 300. Analysts questioned the sustainability of material growth in the third quarter of 2019, VJ added: “I do believe fundamentally that we are now moving towards material growth. In the coming months, The President and CEO also said that 3D Systems plans to significantly expand the application of Figure 4 by relying on the release of new materials.
VJ said: “Despite the industry’s continued disadvantage, we have achieved good growth in materials and healthcare in this quarter due to customer demand for our core and new product solutions.”
