3D Systems prelim results – surprise: ahead of expectations!

Feb 11, 2016 | Hot Topics

3D Systems has been battered lately, as the consumer market for 3D printing hasn’t developed the way the company envisioned. A management shakeup, exiting the Cube businesses — it’s been a tough six months. Then, this morning, the news that Q4 revenue will be around  $183 million, WAY above expectations of around $160 million. We don’t really know why, yet, since Interim President & CEO and Chief Legal Officer Andy Johnson says that “Industry conditions remain challenging and demand may be uneven in the coming periods. However, we are confident about the long-term opportunities for our technology and solutions … We are prioritizing our resources around professional and industrial applications to foster sustainable growth and improve profitability.”

Aside from that nice unexpected bump in revenue, we’ll need to learn more about the non-cash goodwill and intangibles impairment charge the company will take in Q4 of $510 million to $570 million. That’s huge. 3D Systems has previously said it is consolidating facilities, reducing headcount and re-focusing investments to improve printer quality and develop products for the roughly 98% of the business that was focused on industrial users.

Important to note: the press release says that as of December 31, 2015, the company had $156 million of cash on hand and had made no borrowings under its $150 million revolving credit facility.

We’ll know more when the company releases earnings on 29 February.