Pacific Crest: 3D Systems Moving In Right Direction, But 'A Lot' Of Work Remains

Pacific Crest’s Weston Twigg maintained a Sector Weight rating for 3D Systems Corporation DDD, after the company preannounced its 4Q results for the second time.

3D Systems reaffirmed Q4 revenue at approximately $183 million, while guiding to operating expenses of $90 million, compared to Q3 GAAP operating expenses, excluding a one-time arbitration award, of $94.4 million.

“We model Q4 non-GAAP operating expenses of $64.3 million. At first blush this looks like a positive indication that the company is cutting costs, but it is unclear what Q4 operating expenses are on a non-GAAP basis,” analyst Weston Twigg pointed out.

3D Systems raised an inventory write-down related to consumer products to $27 million, from $19 million to $25 million. The company guided to cash on hand of $156 million, down from $157.5 million in Q3.

3D Systems extended its 10-K filing to March 15 to complete accounting work related to its anticipated goodwill and intangible asset impairment charges.

The company continues to restructure and generate meaningful write-downs, Twigg mentioned. He added, “We believe the company is struggling to right-size its business in the current soft demand environment. It is also still looking for a full-time CEO. We believe 3D Systems is moving in the right direction, but a lot of work remains as it tries to streamline its business after years of acquisitions.”