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3D Systems financial results for Q1 of 2019 show a decline in revenue at the 3D printer manufacturer. Dissatisfaction with the latest results led to a dramatic 20% fall in the company’s share-price.
On a call with investors and analysts, 3D Systems CEO Vyomesh “VJ” Joshi stated, “Revenue in the first quarter was $152 million, an 8% decrease from the first quarter of 2018. Excluding large enterprise customer orders from both periods, total revenue decreased 5%.”
Earnings - Call - VJ - Efforts - Operating
In the earnings call, VJ detailed the ongoing efforts around reduced operating costs and the continued development and sales of materials, in particular, dental materials.
Q1 2019 revenue drivers for 3D Systems. Image via 3D Systems.
Systems - Revenue - Company - Business - Segments
3D Systems revenue is reported by the company in two business segments: Products and Services. In Q1 2019, Products revenue for the company fell 12.4% to $92.3 million from the comparative figure of $105.4 million in Q1 2018. Services revenue in Q1 2019 decreased 1.3% to $59.6 million from $60.4 million in Q1 2018.
In the Products segment, despite the fact that the number of 3D printers sold rose by 90% in Q1 2019, total 3D printer revenue dropped by 29%. In addition to this, income from software fell by 8% to $20.8 million and materials revenue declined by 3% in Q1 2019.
Services - Segment - Manufacturing - Services - Revenue
In the Services segment, on-demand manufacturing services revenue fell 12% to $20.8 million in the first quarter of 2019. Healthcare and simulation revenue (also in Services segment) increased in Q1 2019. Joshi explained the movements were offset by the timing of large customer orders, therefore the total healthcare solutions revenue dropped by 5% to $50 million in the first quarter of 2019.
Executive Vice President and Chief Financial Officer of 3D Systems, John McMullen, said, “Excluding the larger enterprise customers orders from each year, healthcare revenues increased approximately 18%.”
In this regard,...
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