3D systems released its fourth quarter and full year financial results. The shares of the company fell by 12.5% and reported a revenue decrease of 9.5% from a year ago to $165.9 million.
The company has to get geared to improve its financial results if it wants to retain their investors. 3D Systems announced its fourth-quarter financial results stating a decrease of 9.5% in revenues from a year ago, with earnings per share at $0.05. The led to a negative reaction in the market’s initial reaction was negative. 3D systems has assured its investors that the present 3D printing market is going through a transition and their continued demand for 3D printing materials and printers will make the situation normal for them.
The president and CEO, Vyomesh Joshi said that the company was focussing on innovation and execution to accelerate the 3D production and get better profits. While the analysts had predicted revenue of $176.1 million, but the results were at $165.9 million. 3D systems expect the revenue to grow from 2% to 8% in 2017, but in spite of the reassurance, the day ended at a 9.9 % low.
3D systems, however, has some reasons to be optimistic. The gross profit margin for the company for the quarter improved to 50%, up from 47.7% on the year. The company earned $18.7 million cash during the quarter, with $184.9 million cash at the year ending. The company recently took some cost cutting initiatives which reduced the operating costs by $10 million in the fourth quarter, to $78.8 million. 3D Systems CFO John McMullen said that the company was striving to establish a strong cost structure and achieve operational expertise. The 3D printing giant is geared to improve its infrastructure and other operations and expects continued cash generation and increased profitability.