3D Systems just announced that it now expects Q3 revenue of $164 million to $169 million, about $20 million shot of Wall Street’s expectations, and full-year revenue between $650 million and $690 million — far short of the $700 million to $740 million announced in July. At the time, CEO Avi Reichenthal said that 3D Systems expected to “generate a higher portion of our revenue during the second half on rebounding margins. Record bookings for our design and manufacturing printers together with rising orders for our consumer products provides us with confidence in our ability to achieve our 2014 guidance.”
What changed? I won’t be able to listen to the conference call about the preannouncement until later this week, but it seems that delays in consumer printer production and problems in direct metal printing are the culprits. In today’s announcement the company said that
Strengthening sales of the company’s design, manufacturing and healthcare products and services were not enough to overcome the revenue shortfall from the continued manufacturing capacity constraints for its direct metals printers and delayed availability of its newest consumer products.
Mr. Reichenthal further explained, “We are disappointed that we failed to fully capitalize on the robust demand for our direct metal and consumer products during the quarter. While we worked very hard to deliver these products sooner, achieving manufacturing scale, quality and user experience targets took significantly longer than we had anticipated … Now that we have closed these availability gaps, we expect our revenue growth rate to increase”.
But apparently not enough to close the gap for the year. More later on this.