3D Systems Corporation (DDD) reported a wider loss in the second quarter due to an increase in selling, general and administrative expenses as well as higher cost of sales. However, revenue climbed by 11% to $176.6 million, driven by the printers, healthcare and manufacturing businesses. The top and bottom line exceeded analysts’ expectations. Shares of the 3D printers maker grew more than 16% in the after-hours trading.
GAAP net loss for the quarter was $8.9 million or $0.08 per share, wider than last year’s loss of $8.4 million or $0.08 per share a year ago. Non-GAAP net income fell to $6.2 million or $0.06 per share from $8.6 million or $0.08 per share last year. The top and bottom line exceeded analysts’ expectations.
Printer revenue grew 41% while printer unit sales rose 37%. The company saw growth in healthcare solutions, materials, and on-demand manufacturing.
Gross margin fell to 48.8% from 50.6% a year earlier. The impact of the mix of sales and investment in services and on-demand manufacturing offset cost improvements from ongoing supply-chain cost reduction initiatives.
The company expects to continue to roll out new products as planned throughout 2018. 3D Systems partnered with Georg Fischer to create new integrated solutions and expand its global network and market opportunity. With the product rollouts in 2018, the company continues to be keenly focused on execution and operational efficiency to drive long-term growth and profitability.
The company’s competitor Stratasys Ltd. (SSYS) reported Q2 2018 results during early August with revenues of $170.2 million and GAAP net loss of $0.08 per share. Stratasys’ revenue rose slightly by 0.14% from last year mainly due to recovery in high-end system orders in North America and in certain verticals, specifically its customers in government, aerospace, and automotive.
Shares of 3D Systems ended Tuesday’s regular trading session up 1.65% at $13.57 on the NYSE. The stock has risen more than 57% for the year-to-date and more than 4% for the past year.