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3D Systems’ 2015 Fourth Quarter and Full-Year Financials Surprisingly Optimistic

by • March 14, 2016 • No Comments

3D_Systems_Logo_-_of_CommonsIt was just a few months ago that 3D Systems saw its stock prices bottoming out amid lawsuits, multimillion dollar judgments, allegations of misleading stockholders and worthwhile layoffs. It was seemingly a nonstop string of bad news, as hits, one after the other kept coming, all pointing to what most insiders called poor company management and dysfunctional company culture. Ultimately, the string of financial hits may bring with it the resignation of longtime CEO Avi Reichental and a few day end the Cube, 3D Systems’ unsuccessful take on to penetrate the fragile PC 3D printing device market. Whilst quite few mourned the demise of the Cube, it appears like exiting the PC market may bring with it a few new hope for beleaguered stockholders.

After filing late, this week 3D Systems Corporation released their financial results for the fourth quarter and full year ending December 31, 2015 and it held a few amazingly great news for the company. Predictions had been grim, yet final annual results showed an unexpected 2% increase in total rin factues, that cautilized a jump in trading that surged to an approximately 25% jump in value. Interest in the company’s stock had been dropping for approximately the entire 2015 fiscal year as share prices dipped down to a dismal $9.29 a share of a high of $97 back in December 2013. The jump in rin factue in fact seemed to take 3D Systems by surprise, as industry analysts predicted losses and they had been keeping silent on their financials.

3dp_3dsystems_earningsThe fourth quarter of 2015 in fact saw a minimize in rin factue of a little over 2% of the fourth quarter in 2014, yet rin factue estimates had predicted a much greater loss. The company reached $184.3 million in rin factue, additional than $17 million higher than original predictions. They in addition reported that the company took a GAAP loss of $5.32 per share, $595.4 million, and showed non-GAAP earnings of $0.19 per share inside the fourth quarter. Additionally, the full year 2015 financial results showed that 3D Systems in fact grew its overall rin factue by 2% to $666.2 million. That offered $0.27 earnings per share (EPS) when analyst predictions expected EPS of just $0.11 and final rin factues of just $646.55 million.

“Whilst market conditions stay challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions of acquisitions supported rin factue during the quarter. We believe that by leveraging our domain expertise, partner and customer relationships and high end innovation we are well positioned to capitalize on significant opportunities in key verticals. We are continuing an extensive and comprehensive review of our business and strategy and bringing steps to advantageous prioritize our resources and focus our investments,” explained 3D Systems Interim President Andrew Johnson, who in addition serves as Chief Executive Officer and Chief Legal Officer.

3D Systems Cube 3D Printer

3D Systems Cube 3D Printer

Actual fourth quarter 2015 showed a gross profit margin of 32.8% related to inventory and purchase commitments related to the end-of-life of the Cube 3D printing device. The resulting $27.4 million charge was a hefty price to pay for shifting the company away of consumer products, but it may leave a much healthier company behind it. If you exclude the negative impact of the charge, the gross profit margin jumps to 47.7%. That is yet a minimize of 20 basis points of fourth quarter 2014, but if the company can maintain its current sales level in industrial and medical applications it can appear much healthier upcoming year.

The company is heading into 2016 in amazingly great shape, revealing a flat $66.7 million in cash operating expenses, total operating expenses for the quarter at $626.1 million which include a greatcan and intangibles impairment charge of $537.2 million. Excluding the impairment charge makes total operating expenses $88.9 million with $22.4 million for R&D expenses and the staying $66.5 million designated as SG&A expenses. Fourth quarter produced $7.5 million in cash for operations and utilized $3.1 million in cash during the full year, already the company has a solid $155.6 million of cash on hand as of the end of December.

Whilst the 2015 end of year showed a glimmer of hope for the embattled 3D printing company, there is yet a worthwhile amount of work to be done to repair the last year and a half of injure. The initially step is finding a new, permanent CEO to replace Reichental, a search that has been ongoing since the end of the third quarter. Discuss in the 3D Systems Financials forum over at 3DPB.com.