Sequential trends are positive, as the manufacturer of Rapid Manufacturing and 3D Printing machines reversed its net loss from 2008. 3D Systems stock is trading near its 52-week high.
March 19, 2010–3D Systems Corporation (NASDAQ: TDSC) revenue was up 4% for the fourth quarter of 2009, but down 19% for all of 2009. The company notes that all sequential trends are favorable, as companies increase purchases of materials and are again buying new 3D printers and higher-end SLA devices.
Total revenue in 4Q09 (ending December 31, 2009) was $36.4 million, up 4% from a year earlier. For the year, total revenue was $112.8 million, down from $138 million in 2008.
The company reported $3.6 million of 4Q09 net income, a $2.7 million sequential increase. Net income for all of 2009 totaled $1.1 million, compared to a net loss of $6.1 million in 2008.
Systems revenue for the fourth quarter increased sequentially by $6.1 and by $1.2 million compared to the fourth quarter of 2008. Systems revenue for the
year declined to $30.5 million from $41.3 million in 2008. 3D Printer sales increased relative to the third quarter but decreased as a percentage of total systems revenue due to increased sales of large- and mid-frame systems.
Materials sales continued to improve sequentially, a trend the company says resumed in 2Q09. Materials revenue grew by $1.7 million over the third quarter of 2009. Integrated materials for the quarter increased by $0.5 million to $4.4 million, which contributed to the sequential quarterly growth.
Service revenue, including revenue from businesses acquired in the fourth quarter, rose by 12% sequentially and by 4% year-over-year. 3D Systems attributes part of the growth to sales from its new 3Dproparts service. The increase was partially offset by a decrease in system upgrade sales.
During 2009, the company generated $7.7 million of net cash from operations, of which $5.2 million was used to fund its strategic investing activities. The company is debt free and ended 2009 with $24.9 million of available cash compared to $22.2 million at December 31, 2008.
Cash per share on December 31, 2009 was $1.09.
The Final Analysis
3D Systems weathered 2009 better than we thought they would. The company managed to improve its bottom line for three straight quarters despite lower revenues. The cost reductions and productivity improvements started in 2008 have paid off.
Looking ahead, 3D Systems has a significant new competitor, HP. Next month’s launch of is first product—a variation on the Stratasys uPrint—will provide plenty of tough competition in the low end. As we will explain in a separate article closer to product launch, HP intends to duplicate its success with wide-format printers for engineering, where it came to market late, started with a partner, and wound up owning the market. §
Five charts, provided by 3D Systems, follow.