3D Systems Corporation (NYSE: DDD) announced today its financial results for the first quarter ended March 31, 2019.
For the first quarter of 2019, the company reported revenue of $152.0 million, a decrease of 8 percent compared to $165.9 million in the first quarter of the previous year. The company reported a GAAP loss of $0.22 per share in the first quarter of 2019 and a GAAP loss of $0.19 per share in the first quarter of 2018, and a non-GAAP loss of $0.09 per share in the first quarter of 2019 compared to a non-GAAP loss of $0.03 per share in the first quarter of 2018.
The company reported 90 percent higher printer unit sales, but as a result of the mix of unit sales, printer revenue decreased 29 percent compared to the first quarter of the prior year. Healthcare services and simulation increased, however timing of large customer orders for printers and materials offset the increases, and total healthcare revenue decreased 5 percent from the first quarter of 2018. During the first quarter, materials revenue decreased 3 percent, software decreased 8 percent and on demand services decreased 12 percent.
The company reported GAAP gross profit margin of 43.2 percent for the first quarter of 2019 compared to gross profit margin of 46.9 percent in the prior year period. Under absorption of overhead driven by lower revenue and production combined with mix of sales resulted in lower gross profit margin in the first quarter of 2019.
For the first quarter of 2019, GAAP operating expenses decreased 9 percent to $87.0 million compared to $95.3 million in the prior year period. SG&A expenses decreased 6 percent to $65.1 million and R&D expenses decreased 15 percent from the first quarter of the prior year to $21.9 million.
The company used $15.2 million of cash in operations and ended the quarter with $157.3 million of unrestricted cash on hand. The use of cash during the first quarter was driven by lower than anticipated sales during the quarter and higher inventory in support of new product ramps.
“While we expected seasonality in our revenue this year from ordering patterns of enterprise customers, the first quarter was lower than anticipated as a result of shipment timing and additional on demand weakness,” commented Vyomesh Joshi (VJ) chief executive officer, 3D Systems. “We are taking actions to improve performance for the balance of the year, including accelerating cost reductions.”
“With the breadth and strength of our portfolio, we continue to have significant market opportunities to expand our market share and are committed to executing our plans to drive long term profitable growth,” concluded Joshi.