3D Systems, based in Rock Hill, South Carolina, has released preliminary revenue results for the third quarter of 2023, as well as providing a business update on the next phase of its comprehensive restructuring initiative.
For the third quarter 2023, the company expects revenues between $123.0-124.0 million, reported to be around $9.3-8.3 million lower than its third quarter 2022 results primarily due to continued weak demand for its machines. Although fourth quarter 2023 revenues are expected to improve consecutively, in line with historical seasonal trends, the full-year 2023 revenues will likely be lower than previously anticipated. Given this and the ongoing uncertainty in the macroeconomic and geopolitical landscape, the company has decided to withdraw its full-year 2023 financial guidance.
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The company also announced the next phase of its restructuring initiative, aimed at improving operating efficiencies across the organisation and driving long-term value creation. This phase is expected to deliver annual savings of $45-55 million by the end of 2024, with most of the cost reductions occurring by the first quarter of 2024. The initiative mainly focuses on reducing headcount and geographic locations across all company functions.
These efforts should streamline the organisation and lower operating costs, while improving customer quality and delivery reliability, states 3D Systems. These cost-saving measures are designed to maintain key investments in new product development. This is expected to result in the launch of several innovative new production AM platforms and advanced engineering materials in 2024. These will meet anticipated customer needs in coming years.
The net effect of these actions is expected to enhance short-term profitability and cash flow, while supporting long-term growth as Additive Manufacturing continues to expand in production environments worldwide.
The company emphasised it has not yet completed its financial and operational closing procedures for the third quarter of 2023. Moreover, the preliminary financial data it provided has not undergone review or other procedures by the company’s independent registered public accounting firm. Consequently, the actual results may differ and the final results will not be publicly available until the company releases its third quarter 2023 results in early November 2023.