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Thursday, 08/03/2017 11:57:26 PM

Thursday, August 03, 2017 11:57:26 PM

Post# of 6624
3D Systems has “work to do”, revises forecasts – market reacts badly

At 3dprintingindustry.com - 3D Systems has “work to do”, revises forecasts – market reacts badly - August 03rd 2017

3D printing industry earnings season continues with financial results from 3D Systems (NYSE:DDD), and the stock market is not reacting well to the news. The company’s share price has taken almost a 20% hit since publication of the Q2 results.

Is the sky falling?
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Speaking to investors and analysts Vyomesh Joshi (VJ), Chief Executive Officer, said, “we have performed very well in some areas and other areas require improvements.”

While it has taken longer and cost more than initially anticipated, we have made significant improvements in quality and reliability and expect these costs to continue throughout the balance of the year. We are putting very clear actions in place both organizationally and operationally to address short-term issues as well as longer term needs of the company to achieve accelerated performance in 2018 and beyond.

Healthcare sees double-digit growth

Healthcare is one area where 3D Systems undeniably performed well. Revenue for the second quarter of 2017 increased by 25% to $49 million. In Q1 the healthcare business grew 27%.

John McMullen, Executive Vice President and Chief Financial Officer explains that this was “result of growth in all categories within healthcare.”

When speaking about long-term strategy, VJ has consistently pointed to the importance of the healthcare vertical. This was reiterated on yesterday’s call.

3D Systems will seek to replicate success in the healthcare sector across other key verticals, including expansion of the aerospace segment.

We are leaders in precision healthcare and are growing that category at double-digit rates. … We are very successful in metals in the healthcare. And I think our main thing … is we want to expand into the industrial, into the aerospace with the metal opportunity.

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For reference:

http://www.medicalmodeling.com/





http://www.medicalmodeling.com/solutions-for-engineers/electron-beam-melting-ebm-for-titanium-implant-production





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