CEO: 3D Systems to increase focus on lower-priced products
3D Systems Corp. (Nasdaq: TDSC) CEO Abe Reichental said during a morning conference call that the maker of three-dimensional prototyping systems will continue to focus more on lower-priced products.
The company unveiled the new version of its V-Flash Desktop Modeler in late September. The modeler is a rapid prototype machine designed for home, educational and office environments. To raise awareness, Reichental said the Rock Hill, S.C.-based company will launch an e-commerce site during the fourth quarter that will focus on V-Flash.
“Upon successful completion of our initial rollout phase in the United States, we anticipate expanding the marketing reach of our V-Flash modeler in Europe during the first quarter of 2008,” Reichental said.
The company expects to place about 100 V-Flash systems in the United States before the end of calendar 2007. The unit sells for about $9,900.
“V-Flash is going to represent a game-changing device. We have never had a device that could potentially be sold in the thousands,” he said. “Before we get overly excited, we want to make sure that the system is tested and verified en masse.”
After Thursday’s close, 3D Systems reported third-quarter revenue of $38.2 million, up 21% from $31.5 million and on par with analyst estimates of $38.2 million. The firm’s quarterly profit totaled $0.3 million, or $0.01 per share, below Wall Street projections of $0.05 per share but compared with a loss of $11.3 million, or $0.61 per share, during the same period of 2006.
“As demonstrated by our progress to date, we believe that we are continuing to turn the company around and place it on a solid, longer-term, sustained profitable growth path,” Reichental said.
The company’s operating expenses for the three-month period ended Sept. 30 declined 20% to $15.5 million, from $19.4 million in the prior-year quarter. Gross profit jumped 48% to $15.9 million, from $10.7 million during the same period of 2006. Last year, the firm incurred restructuring costs associated with the move of its headquarters, CFO Damon Gregoire said.
For the fourth quarter, 3D Systems projects selling, general and administrative expenses in the range of $11 million to $13 million. The firm also raised its estimate of fourth-quarter research and development expenses to a range of $13 million to $14 million, from a previous range of $12 million to $13 million.
“In the following quarters, we expect to move SG&A costs lower to our historical levels,” Gregoire said.
In response to an analyst’s question, Gregoire said the company does not expect to increase its share count.
In midday trading, TDSC shares are down 3.8%, or $0.80, at $20.26. Over the last 52 weeks, shares have ranged from $13.62 to $26.50.
