3D Systems, Rock Hill, South Carolina, USA, has announced its financial results for the second quarter ended June 30, 2017. The company reported good performance in the healthcare and industrial markets, along with steady growth in revenue from software and on demand manufacturing, but experienced an overall drop in Additive Manufacturing (3D Printing) machine sales.
Of 3D Systems’ total revenue for Q2 2017, $27.7 million came from machine sales, down from $31.6 million in the previous quarter and $32.3 million in Q2 2016. Speaking with investors, John McMullen, Executive Vice President & Chief Financial Officer of 3D Systems, stated that while total reported machine revenue decreased, revenue for the company’s production printers, which include the full range of its metal AM systems, actually increased compared to the prior year’s quarter.
According to McMullen, growth in revenue from this range was offset by softer sales and quality issues in the company’s range of ‘professional printers’ – in particular, its polymer-based MultiJet AM systems. Regarding the rise in demand for the company’s ‘production printers’, CEO Vyomesh Joshi stated, “We are very successful in metals and in the healthcare industry. I think our main thing is we want to expand into the industrial, into aerospace with the metal opportunity.”
3D Systems’ total revenue for Q2 2017 was reported at $159.5 million, up 1% from $158.1 million in the same period 2016. “We are pleased with the growth in production printers, materials, software and healthcare,” reported Joshi. “However, we have work to do in the second half of this year to improve our execution across the company and position ourselves well for long-term success and profitable growth in 2018 and beyond.”
In light of the lower revenue achieved from machine sales overall and softer sales in the Asia-Pacific region, the company has revised its full year 2017 guidance. Full year revenue growth is now expected to be between 2% and 6%, having previously been forecast at 2-8%, resulting in a predicted revenue range of $643-671 million, down from the previous forecast of $643-684 million.