The company expects to generate significant revenue in the upcoming quarters as it begins to ship its previously announced products.
The company reported 11-percent revenue growth to US$176.6 million for the period, as compared to US$159.5 million in the year-ago quarter. Further, 3D Systems reported 41-percent higher revenue on its printer verticals due to a 37-percent increase in printer unit sales.
Its GAAP loss came in at $0.08 per share in the second quarters of both 2017 and 2018. 3D Systems’ non-GAAP earnings came in at $0.06 per share in the second quarter of 2018 as compared to $0.08 per share in the second quarter of 2017.
“We are pleased with our results for the second quarter, which were driven by strong revenue growth, including growth in both printer revenue and units as we continue to improve execution and are seeing the early returns on our investments in both innovation and go-to-market,” said CEO Vyomesh Joshi.
R&D expenses decreased 7 percent to US$22.7 million as 3D Systems began shipping previously announced products, including the FabPro 1000 Industrial desktop 3D printer and the ProX SLS 6100.
Joshi said in the company’s earnings call that the ProX SLS printer offers the widest range of materials and has a lower cost of operation than similar competitive systems, including those from HP (NYSE:HP).
Further, Joshi provided an update on the company’s product portfolio, saying that 3D Systems has planned launches throughout 2018.
“We already talked about that we are shipping FabPro 6100. We started shipping last week our NextDent 5100 and we are slowly ramping our figure for standalone,” Joshi said. “So my view will be a ramp — kind of a slow ramp that you could see in Q3 and Q4, but 2019 we should have a significant revenue.”
Joshi commented that 3D Systems is focused on its installed base as the company’s sales declined 3 percent year-over-year even as its printer products verticals recorded growth.
“But as the installed base grows, the new opportunity of maintenance contracts will appear. So I think you need to really look at that as a build,” Joshi said.
The company ended the quarter with US$119.3 million in unrestricted cash on hand after generating US$10.7 million in cash in operations during the quarter.
In the earnings call, Joshi said that the partnership with Georg Fischer is significant.
“Having a partnership with a leader in precision machining … which has a global footprint, I think you’re going to see us also accelerating our metal and the automation of the factory system that we can apply across our product line,” Joshi said.
Following the announcements, shares of 3D Systems rose as much as 36 percent before closing the trading session on Wednesday at US$17.96, up 32.25 percent. Over 17.25 million shares were traded over the one-day period.
The stock has a “strong buy” ranking on TradingView with 17 verticals in favor, seven neutral and two against. On TipRanks, 3D Systems has a “moderate sell” ranking with an analyst target price of US$13.25, a high estimate of US$17 and a low estimate of US$9.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.