3D Systems Corporation (DDD) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $5.23 million, or $ 0.05 a share in the quarter, against a net loss of $596.37 million, or $5.32 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $16.71 million, or $0.15 a share compared with $20.88 million or $0.19 a share, a year ago.
Revenue during the quarter dropped 9.50 percent to $165.94 million from $183.36 million in the previous year period. Gross margin for the quarter expanded 1714 basis points over the previous year period to 49.95 percent.
Operating income for the quarter was $4.07 million, compared with an operating loss of $565.92 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.80 million compared to $21.17 million in the prior year period. At the same time, adjusted operating margin contracted 142 basis points in the quarter to 10.12 percent from 11.54 percent in the last year period.
"Demand from industrial customers combined with growth in software and healthcare services were not enough to offset the impact of weaker sales of professional printers and on-demand services, resulting in a 10% decrease in revenue in the fourth quarter of 2016 compared to the fourth quarter of 2015. "Continued demand for our production printers and materials reaffirms our belief that our industry is at an inflection point in the transition from prototyping to production," commented Vyomesh Joshi (VJ), chief executive officer, 3D Systems."
For fiscal year 2017, 3D Systems Corporation forecasts revenue to be in the range of $643 million to $684 million for fiscal year 2017. The company expects diluted earnings per share to be in the range of $0.02 to $0.06. The company expects diluted earnings per share to be in the range of $0.51 to $0.55 on adjusted basis.
Operating cash flow turns positive
3D Systems Corporation has generated cash of $56.90 million from operating activities during the year as against cash outgo of $3.13 million in the last year.
The company has spent $21.88 million cash to meet investing activities during the year as against cash outgo of $120.86 million in the last year.
The company has spent $3.93 million cash to carry out financing activities during the year as against cash outgo of $2.16 million in the last year period.
Cash and cash equivalents stood at $184.95 million as on Dec. 31, 2016, up 18.83 percent or $29.30 million from $155.64 million on Dec. 31, 2015.
Working capital increases
3D Systems Corporation has recorded an increase in the working capital over the last year. It stood at $302.54 million as at Dec. 31, 2016, up 5.42 percent or $15.55 million from $287 million on Dec. 31, 2015. Current ratio was at 3.32 as on Dec. 31, 2016, up from 2.97 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 70 days for the quarter from 62 days for the last year period. Days sales outstanding went down to 35 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has increased to 57 days for the quarter compared with 40 days for the previous year period. At the same time, days payable outstanding went up to 22 days for the quarter from 17 for the same period last year.
Debt comes down
3D Systems Corporation has recorded a decline in total debt over the last one year. It stood at $8.16 million as on Dec. 31, 2016, down 6.39 percent or $0.56 million from $8.72 million on Dec. 31, 2015. Total debt was 0.96 percent of total assets as on Dec. 31, 2016, compared with 0.98 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year.
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