As in the years 2010 – 2015 3D Systems was the absolute leader in the 3D printing market, the last few years can hardly be considered successful. As we describe it on the pages of the portal, the American company loses money on current operating activities quarter by quarter – year by year. It recently published the results for Q2 2020 – the first quarter entirely affected by the lock-down caused by the COVID-19 pandemic and it’s really bad…
The company’s revenues in the second quarter of this year amounted to $ 112 million, i.e. -28% less than in the corresponding period last year ($ 157.2 million in Q2 2019). For the entire first half of 2020, it recorded revenues of $ 246.7 million, which was a decrease of -20% from the first half of 2019 ($ 309.2 million). The source of these results is certainly the still declining sales of 3D printing machines – revenues from this title decreased by -34% quarterly (year-on-year) and -24% semi-annually (also year-on-year). Service revenues decreased by -20% and -13% respectively.
On a quarterly basis, 3D Systems posted an operating loss of $ 33.9 million and a net loss of $ 38 million. Half-yearly, the loss was $ 52.1 million and $ 56.9 million, respectively. As we have mentioned it many times, no organization can waste money forever. As of June 30, 2020, the company had inventory of $ 125 million, an increase of + 11% from the end of the last fiscal year. The company’s assets fell from $ 133.6 million at the beginning of Q1 2020 to $ 63.9 million at the end of the second quarter…
The good news is, at least, that 3D Systems is systematically reducing its own costs – on a quarterly basis, costs fell by 25%, and on an annual basis by 20%. The new CEO of the company – Jeffrey Graves, does not stop there and announces further job cuts. Every fifth employee of 3D Systems is to lose a job in the near future. Combined with other austerity measures, this is expected to lead to $ 100 million in annual cost savings by the end of next year (2021). Jeffrey Graves says this will keep the company profitable at its current revenue levels and prepare it for future sales growth (???).
In order not to risk too much, the board of directors of 3D Systems has additionally agreed to issue shares worth $ 150 million, which is intended as an alternative way to raise cash and rebuild declining financial reserves. Will this plan be successful in the current economic climate? The second half of the year should give us answers to all of this …
Source: www.3dsystems.com