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Gain: $112.9 million, down 9% from the previous year.
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Industrial income: $57.9 million, down 19% due to a decline in printer sales.
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Healthcare income: $55.1 million, up 5% year over year.
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Consumables growth: An increase of approximately 10% compared to the previous year.
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Gross margin: 37.6%, affected by reserves for inventory obsolescence; normalized margin at 40.2%.
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Operating costs: $61.4 million, an increase of $5.6 million from the previous year, but a sequential decrease of $2.7 million.
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Adjusted EBITDA: Negative $14.3 million, compared to a profit of $4.7 million last year.
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Net loss per share: $1.35, including non-cash charges of approximately $144 million.
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Cash and cash equivalents: $190 million at the end of the quarter.
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Inventory reduction objective: A 20% reduction by the end of the year.
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Revenue guidelines for the entire year: $440 million to $450 million.
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Gross margin guideline for the entire year: 38% to 40%.
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OpEx target for Q4: Less than $60 million.
Release date: November 27, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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3D Systems Corp (NYSE:DDD) reported 10% year-over-year growth in consumables sales, indicating increased utilization of their installed base.
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The company’s industrial applications group saw sales increase 26% this year, reflecting strong customer interest in new 3D printing applications.
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Healthcare segment revenues increased 5% year-over-year, driven by a significant recovery in the dental and personalized healthcare businesses.
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3D Systems Corp (NYSE:DDD) has introduced new products, including the PSLA270 printing platform and QuickCast Air, that are expected to drive future growth.
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The company is on track to achieve a 20% inventory reduction by the end of the year, improving cash flow and working capital management.
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Third quarter revenues were flat sequentially, declining 9% year over year, mainly due to macroeconomic pressures impacting hardware system sales.
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Non-GAAP gross margin decreased to 37.6%, driven by higher inventory obsolescence reserves and lower factory utilization.
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The company reported an adjusted EBITDA loss of $14.3 million for the third quarter, compared with a profit in the same quarter last year.
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3D Systems Corp (NYSE:DDD) has adjusted its full-year revenue guidance to $450 million from $440 million, reflecting a more modest recovery than previously expected.
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The company faces inventory management and factory absorption challenges, which could continue to negatively impact gross margins.
Q: With only a month left in the quarter, why is there a relatively wide range of scenarios for Q4 revenue guidance? A: Jeffrey Graves, CEO, explained that the uncertainty is due to customers cautiously managing their inventories amid geopolitical and economic uncertainties. In addition, the timing of capital expenditures (CapEx) is uncertain as some installations may be delayed, impacting revenue recognition.
Q: Can you please explain the gross margin guidance for the year as the nine-month gross margin was 39.5%? A: Jeffrey Graves, CEO, noted that gross margin expectations reflect potential adverse absorption if fourth-quarter revenues are at the lower end of expectations. In addition, a mix effect due to an expected increase in printer sales, which typically have lower margins, could impact overall gross margins.
Q: Is profitability a realistic goal for 2025, and what factors could influence this? A: Jeffrey Graves, CEO, expressed optimism about achieving profitability by 2025, driven by new application developments and potential revenue growth. However, the timing of customers’ capital investments remains uncertain, and cost management capabilities will also play a critical role.
Q: Can you provide an update on the Oqton software and its impact on production processes? A: Jeffrey Graves, CEO, emphasized that Oqton software is integrated into high-reliability markets, such as oil and gas, to improve productivity and quality. It enables real-time monitoring and traceability, making 3D printing a real manufacturing process.
Q: What are the plans for the convertible debt due 2026? A: Jeffrey Graves, CEO, stated that the company is exploring traditional methods to address convertible debt, with the goal of settling it well in advance of maturity. More details will be provided in 2025.
For the full earnings call transcript, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
