3D Systems reports Q4 and full year 2020 results
March 3, 2021
3D Systems, Rock Hill, South Carolina, USA, has announced unaudited fourth quarter and full year 2020 results.
For the fourth quarter, the company posted a GAAP operating income of $7 million and a GAAP net loss of $19.8 million. Revenue of $172.7 million was seen in Q4 2020, compared to $168.2 million in Q4 2019. An increase of 26.8% was seen over Q3 2020’s figure of $136.2 million. Restructuring and improvements in efficiency are believed to have driven a non-GAAP operating income of $16.2 million and adjusted EBITDA margins of 13%.
Operating expenses decreased by 9.2% to $71.7 million in the fourth quarter of 2020, compared to the same period in 2019. On a non-GAAP basis, operating expenses were $58 million, a 15.8% decrease from the fourth quarter of the prior year.
Gross profit margin in the fourth quarter of 2020 was 42% compared to 44.1% in the same period last year. Non-GAAP gross profit margin was 42.9% compared to 44.3% in the same period last year.
Full year 2020
The reported revenue for the full year 2020, $557.2 million, had decreased 12.4% compared to 2019, primarily due to the impacts of the coronavirus (COVID-19). Revenue from the company’s Healthcare sector increased 9.1%, to $245.4 million, compared to the prior year, driven by stronger sales in both dental and medical applications. Industrial sales decreased 24.2%, to $311.9 million, compared to the previous year, as demand has not currently returned to pre-pandemic levels.
Gross profit margin for the full year 2020 was 40.1% compared to 44.1% in 2019. Non-GAAP gross profit margin was 42.6%, compared to 44.8%. Gross profit margin decreased, primarily due to the under-absorption of supply chain overhead resulting from lower production, as well as an end-of-life inventory charge of $12.4 million.
Operating expenses for the full year increased 1.4% to $342.3 million compared to 2019. On a non-GAAP basis, operating expenses were $236.9 million, a 16.2% decrease from the prior year. The lower non-GAAP operating expenses reflect savings achieved from cost-restructuring activities, as well as reduced hiring and lower travel expenses due to the pandemic.
Dr Jeff Graves, 3D Systems CEO, stated, “While 2020 will always be known as a year of great challenges, I am very proud of our efforts to focus the business on the increasingly exciting opportunities we see ahead for Additive Manufacturing, across both Healthcare and Industrial markets. With the progress we have made over the last year, we can now clearly see a future of exciting growth, expanding applications, and increasing profitability that will allow us to invest for the future, creating true value for our customers, our employees and our shareholders.”