3D Systems Revenue Rises 42% in Second Quarter

The maker of 3D printing and additive manufacturing units experienced good recovery in all aspects of their business.

3D Systems Corporation (NASDAQ: TDSC) has announced second quarter results that show overall improvement in all sectors of its business compared to its disastrous showing in 2009.

Total revenue for the quarter ending June 30, 2010 was $35.1 million, up 42% from a year earlier. Net income was $2.7 million, compared to a net loss of $1.3 million a year earlier.

Systems revenue (large additive manufacturing units) increased by $4.8 million compared to the 2009 quarter and by $8.7 million for the first six months of 2010. The company achieved record revenues from its 3D Printers which resulted in a 92% improvement over the 2009 quarter.

Both divisions are seeing most of the increase from products brought to market in the last year. The company has worked the kinks out of its production line for the new low-cost VFlash 3D printer and is starting to market the product more aggressively, specifically against the uPrint from Stratasys.

Materials sales grew by $2.3 million and $5.3 million over the second quarter and first six months of 2009, indicating a continued recovery across the installed base. Cash per share on June 30, 2010 was $1.13, down slightly from $1.16 at the end of the previous quarter. The company generated $7.4 million of cash from operations during the first half of 2010 and used $6.2 million to fund “strategic investing activities,” including the purchase of two French rapid prototyping and manufacturing services providers.

What We Think
Two years ago Scott Crump, competitor of rival Stratasys, said he wished 3D Systems’ business would improve, because his company needed healthy rivals to expand the market. With strong VFlash sales on the low end and renewed interest in additive manufacturing systems among larger companies, Crump’s wish seems to be coming true.

Key financial metrics for 3D Systems