The unnoticed 3D Systems quarterly results
The Atomic Layers: S4E30 (00116)
Atomic Layer of the Day:
In the shadow of Formnext and the troubling events that accompanied it (the end of Kimya's operations, Forward AM's insolvency, VoxelDance IP controversy), the quarterly financial results of 3D Systems, published four days ago, went almost unnoticed.
But not for me…
Once again, the company faced issues with the timely release of these results due to the need for an additional, unplanned valuation of the company’s goodwill and long-lived assets. However, the company had already warned two weeks ago that there would be no pleasant surprises—just more of the same…
3D Systems' financial results for the third quarter of 2024 indicate difficult times for the company, with significant challenges in revenue and profitability. Revenue totaled $112.9 million, marking a -9% decline compared to the same period in 2023, primarily due to lower 3D printer sales. The results were somewhat salvaged by a +10% increase in consumables sales.
The Healthcare Solutions segment recorded a +5% year-over-year increase in revenue, reaching $55.1 million. Dental solutions and personalized medical technologies performed particularly well. The Application Innovation Group's revenue grew by more than +26% year-over-year, driven by sectors such as semiconductor manufacturing, oil and gas, aerospace, defense, and healthcare.
The gross margin was 36.9%, while the non-GAAP margin stood at 37.6%. This was a decline from last year's 44.7%, attributed to lower sales volumes and a $3 million increase in inventory reserves. Operating expenses rose to $222.5 million (up from $68.9 million a year earlier), mainly due to asset impairment charges totaling $143.7 million. The net loss was $178.6 million, compared to a $11.7 million loss in Q3 2023.
In terms of adjusted EBITDA, the company reported a loss of $14.3 million, a deterioration of $19.1 million year-over-year. For the full year 2024, projected revenue is expected to be between $440-450 million, with a non-GAAP gross margin ranging from 38-40%.
The third-quarter results highlight 3D Systems' weakening financial condition, primarily due to challenges in 3D printer sales and high restructuring costs. With current losses and reduced cash reserves ($190 million at the end of September), the company faces the challenge of stabilizing its financial position.
Atomic Layer from the Past:
11-30-2014: a fan-made model of BB-8 from Star Wars: The Force Awakens appeared on Thingiverse.
News & Gossips:
Stratasys continues its efforts to introduce PolyJet technology into the world of fashion and design (marketed under the name 3DFashion). While the results are truly spectacular—such as the recent creation by Alexander McQueen—we all know it's extremely expensive to produce, limited to single pieces rather than mass production, and not resistant to high temperatures (since it’s resin, which becomes pliable at 50-60°C).
Bechtle Additive Manufacturing Deutschland GmbH has entered into a new partnership with Formlabs.
Shoutout to my fellow countrymen at 3D Lab, who presented the ATO Suite at Formnext—a comprehensive ecosystem for metal powder production. The system includes a metal melting furnace (capable of processing scrap), a raw material cleaning unit for atomization, a next-generation atomizer, and a sieve for finished powders.
