DDD - Earnings call transcript Q3 2019

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Operator

Good afternoon, and welcome to 3D Systems conference call and audio webcast to discuss the results of the third quarter of 2019. My name is Robert, and I will facilitate the audio portion of today's interactive broadcast. [Operator Instructions].

As a reminder, this conference is being recorded.

At this time, I'd like to turn the call over to Melanie Solomon, Investor Relations.

Melanie Solomon

to conference welcome and afternoon, XD call. Systems Good Johnson, are our Booth, Legal President me and Vice on Chief Officer. Joshi, call the Andrew Officer; Financial Todd With and and Vyomesh Executive and Chief Vice Executive President President Chief Executive Officer;

refer website. on to that on on slide our provided related The will ask so the at issued we the may in Investor this wish Participants access discussed conference the the phone call of of that release number matters of call. phone this this do the session portion contains today. a the slide who during webcast questions using who would presentation the should call Relations and section Those portion like end in presentation slide the call to we to following in along press of the to

of that seconds For you questions streaming have please able to web. portion the via few a webcast, be post the aware those accessed delay not may be the be will who and there

results reflect differ and statements described questions and Actual to this your will as as views The following slide. today discussion include of responses forward-looking materially. management's on only may

XX-K could that quarterly Additional information Form financial our included results reports is today's impact about factors on XX-Q. press with SEC, and potentially annual including on recent report our the in Form filings and release our most

the disclosures measures. available financial our regarding certain additional GAAP including In this and discuss this press you non-GAAP which slides measures. measures of webcast, these measures, website, non-GAAP will Investor call, on will we with reconciliations both During accompanying comparable the these our Relations find are release

be results in period unless this the comparisons call all comparable Finally, against stated, our will of XXXX. for otherwise

Joshi, VJ? our I'm to Vyomesh over turn the CEO. pleased to Now call

Vyomesh Joshi

decrease reflect These our Thanks, divestiture GAAP entertainment and revenue difference would business been margin in and the the from July. a revenue by of quarter afternoon, million X.X%. profit entertainment XX.X%. X.X%, being gross was everyone. in profit completed million. non-GAAP $XXX.X excluded Good revenue $XXX.X XX.X%, the GAAP results was third was decreased the gross was results, margin The but had have non-GAAP Melanie.

quarter $X.XX and a loss we reported third per $X.XX the of share per of of a loss GAAP For non-GAAP XXXX, share.

industry well-known from has demand our and manufacturing decline our this in The year down. activity is impacted overall industrial customers business as production

a a challenges also experience We continued headwinds taken large and customer impacted the these by this to the we EMEA the which on and healthcare. geographic in due of standpoint, driven ordering results the region, in Pacific, From strength quarter by systems. metal revenue slightly to have Americas pause primarily patterns enterprise factory offset was Asia

a positive developments I want few to from quarter. highlight this

our working with As customers have we in find growth workflows. returned right expected, we are materials, closely production and to the to

production. to consumer that and our in for production these markets from very customers customers We that are production. resins us health they end-user PRO-BLK include production our target enabling for materials earnings about from Early our we are of materials transition new tell workflows medical are MED-AMB and prototyping Figure These EGGSHELL, TEMP open very since industrial eight XX call, the care, feedback excited production resins innovative, XXX. platform. HI resins excited like up last and application-specific MED-WHT will and new like new These automotive, have other and segments, X materials electronics us like to introduced

X And very significantly materials, with will Figure X scale in with industrial new these successful months. the dental materials. platform Our our NextDent platforms has Figure production we been X coming

enterprise customer, excluding it grew and X%, grew revenue healthcare large XX%. Our our

focused and flow. cash excellence operational on to committed cost and are are We keenly structure

we year time, in believe, by focus business. And to environment, costs out achieve million X% $X.X of quarter, to Compared by and most take quarter-over-quarter important this the million operations. R&D this, $XX.X we at X%. net continue of reduced is decreased third to last generated profitability. SG&A the by We and that area of uncertain inventory this cash our we In from

in of We lowered out and have we the X% been business R&D XX%, taking X% throughout cost nine XXXX. of in first the expense operating total by XXXX. for And by SG&A months, have reduction

will have that so strategic In XXXX, the the for will right the be reductions coming months, cost we we enter company. we our as structure accelerating

suspension suspension perform a with the of pleased this eligible to States new two United disclosed Force, and we contracts Air we execution and the quarter, without obtain U.S. a them, Force X, from has year the Air that government and contracting restrictions. On following been September of our I'm agreement are Last now lifted federal resolved. administrative now

Finally, for third we generation common I goal and Booth, Todd? XXXX. new profitability Todd our will the who on in September. a of of us driving for provide introduce focus details now have would partnering here, cash as are excited like XD CFO, very Todd results and quarter joined on more operational I'm excellence toward to to Systems. Todd our to

Todd Booth

VJ. afternoon, everyone. Thanks, Good

loss revenue in For million. in million, quarter profit loss of third of a the the was to XXXX compared to GAAP X.X% of third to operating expenses reported XXXX. the per XX.X% $XX.X quarter third per quarter, of a decrease the margin third XXXX. of compared gross XX.X% we decreased $XXX.X $X.XX a of to compared reported share GAAP in GAAP XXXX. quarter GAAP $X.XX of We XX.X% share

Printer customer quarter to and $XX.X of a softer the patterns the loss quarter enterprise large environment. of of in by share of non-GAAP reported third industrial XXXX. We XXXX macro the of driven the earnings ordering XX.X% million, per share decreased to in compared per revenue $X.XX third $X.XX

quarter. revenue Materials to increased $XX.X in the third X.X% million

going We to and forward. are pleased to continue have turned that growth expect to corner

Healthcare increased million. and simulation to $XX.X services revenue X.X%

customer As VJ year, each excluding orders increased large healthcare the mentioned, XX%. from revenue enterprise

simulators medical advanced Virtual Planning, be continue pleased Surgical manufacturing. demand overall for and to trends We with the our

in in our decreased activity in $XX.X revenue manufacturing industry attributable the million decline headwind the manufacturing resolved government and now to with the XX% On-demand to associated the quarter suspension. the

impact We the persist the expect to to due on pipeline. its quarter this headwind in fourth

$XX.X revenue million X.X% third quarter. Software to the increased in

still We headwinds in in enhance are continue product some fourth to software to our and that expect so Cimatron taking slowdown the expect actions portfolio we seeing growth. our we from automotive quarter, the are long-term revenue

ongoing XX.X% Looking basis and quarter persistent we margin at GAAP facing, previous given the revenue of mid-single-digit reported sequential year. growth. We fourth quarter, XXXX, the headwinds macroeconomic a the we profit third from point challenges been of in gross decrease the have XXX are that expecting

point the prior margin driven the from by year. XXXX profit inventory of gross XXX decrease factory was was The quarter in third Non-GAAP basis mix primarily and XX.X%, utilization, a decrease adjustments.

margins continue drive QX range to near As reductions our expect cost term. remain and we in in chain efficiencies, mid-XXs the we the gross during profit supply

$XX.X in X.X% X% decrease third and third sequentially. the the prior operating quarter compared XXXX, XX.X% GAAP for expenses expenses quarter decreased the and in quarter in quarter, including the SG&A the SG&A $XX.X year of decrease quarter operating a X.X% decrease the the expenses to third $XX.X Non-GAAP R&D a decrease were non-GAAP XX.X% XXXX to of of expenses million, million. decrease were Compared million, in a expenses. to X.X%

million. Non-GAAP R&D expenses X.X% decreased to $XX.X

growth. lowering expenses, while to drive by our cost and reduce on investments structure and We are prioritizing to reducing efficiencies drive profitable operating continuing to headcount cost focused sales of

million on We operations sequentially, $XXX.X the $X.X $XX cash of million. unrestricted to quarter and with debt of ended the $XXX.X $XX.X by million paid We hand. generated working inventory million by during cash We reducing performance quarter. million improved down from third capital

with While cash use continue to and the cash very quarter. for to pleased will fluctuate period generation third the are we results period,

With the call VJ. back that, I'll to VJ? turn

Vyomesh Joshi

Thanks, Todd.

the Over since the last joined XD company. I three we have years, Systems, stabilized

Figure and we for are our new introduced with share plastics innovative We gaining our And production XXX X metals SLA, have platforms in platform. materials.

the up confident system that become opportunity metal XXXX, of first are our of will quarter by ramp and we metals good end the for We the a factory company. will solutions

of cash generation. profitability For focused on and remainder the we year, this remain

non-GAAP our in be quarter environment. operating months. first in We company the in We will are and XXXX uncertain company the reduced X% by lean expenses in to on And rightsize cost profitable. out the cost taking structuring and the structure to enhanced this continue have we focus nine fourth

our focus materials, innovative revenue software on professional workflows, profitable production hardware will believe platforms, services including we drive and ahead, growth Looking in XXXX.

questions. And for with we floor Operator? that, open the now will

Operator

[Operator Instructions].

comes first with Our from question Gabelli Hendi & Company. Susanto

Hendi Susanto

structure Good for share VJ and upcoming XXXX. Todd. are and VJ cost you like Todd, to about planning questions take? may I would evening And address and more Can welcome, areas to long your to rightsize how it strategic you major what initiatives Todd. the ask

Vyomesh Joshi

cost. reduction and throughout XXXX, think are we cost I reducing So started the we

drive we and cost getting healthcare two on side which towards hardware, to as organize would understand We both that about, there will lot revenue software. that talked on us models the model and parts, can to And that X%, business to smaller company. really enable business So What to our we to is SG&A. in the a the focus how opportunity to we simplify X you that and want on-demand because And materials R&D we work talked the is we and printer, companies SG&A we in want do profile about better, so to reduced need business have like and those I reduction. model, want where And on of the company, we SG&A second continue as generate. is believe focus profitable. the a we -- I

upfront develop plastics I've to drive now which R&D talking for platforms very concerned, specific As category, really is far product on as can we the solution metals, really we that about. as to platforms. strategy overall developed dollars are And have going both been been focus and R&D had

production to production workflow, combination we we new production SG&A. think R&D do look workflow, software have we’re where reduce production line we and find materials, going production to dental about, can And We What both to try dollars workflows. and medical are more workflow. find that's production R&D hardware, of if devices a workflow, is And focus to want going professional for and services you workflow. so to jewelry

Hendi Susanto

see second how it material And is is great sustainable to VJ. in [recent] the [ph] it, that? business, your question Got growth is,

Vyomesh Joshi

Yes.

delivering in second that, growth. about, to and able the that So half, all I materials our done we see have installed we think, I've should be fundamentally, always work hard we base believe as in growing talked

I XXXX. So this we that in have will material next quarter growth believe do and

believe, are could on flexibility. materials for some But we Now there onwards. that now seasonality growth path I and be do a fundamentally,

workflows. important is The of production part really to -- the materials those right said, have the growth as I

Our really well. doing is enterprise customer

contribute So that materials growth into is growth. positive going the overall to

NextDent, we We very is market, that doing also where feel introduced dental our well.

is and growth we We that material seeing. also are then dental are gaining -- share

to us materials We have taken more we go approach also and that feel enable more after that production will drive the to workflows growth.

new And of hardware remember, will industrial introduced, The see materials take just new of going that of time in it's to have we then our materials. now results Figure the XXXX X. we some production production this this, the because XXXX, the also in we will with growth

no, growth materials are think can that positive I about. the sustain we So we talking

Operator

Chris next FBR. Our Horn with from question comes Van

Christopher Van Horn

Todd. Welcome,

Todd Booth

Thank you.

Christopher Van Horn

soft get environment. You into macro silver statement? there -- wondering was cited linings could industrial you was if or some I within positive that any

Vyomesh Joshi

Sure.

to healthcare pressure So in course, I for positive lot I the Europe those business. us has then know think of about side for want and we now, categories and the the think market, And China. and market, healthcare the especially industrial really Americas manufacturing of overall our automotive I category, right is, talk all a in

just big Planning, in simulators, for quarter. our at grew grew enterprise do out XX%. you we in those healthcare, customer, in Every If advanced third the devices the three you medical quarter, take healthcare manufacturing we category Virtual if device third all company, single look medical Surgical of the businesses

absolutely So that and from making that quarters in XXXX. I going segment, tell in the the is to continue in I point coming to see I growth thing of progress that that forefront. and can the have And particular the healthcare view, are you in we are believe, we

XXXX. that our company. said, I start for have for Once let the we completely other you that we believe all QX, in customers as our metal end qualified get of I factory The waiting will systems growth thing stabilized us that, help in want our that know I do solutions. the shipping also are to and just

us new So focus software. materials, especially fundamentally Cimatron. Right we the on I with XXXX. solution seeing issues, have some software healthcare our sales having in we software that the believe enable But on in on now, are we do healthcare then also are that growth and and and and XXXX will platforms the focus

Christopher Van Horn

that on markets due are in maybe other competitors you healthcare are change the to front, it. in Got all, maybe landscape seeing at softness? leaving Okay. And the and competitive specifically

Vyomesh Joshi

you of the competitors. this I have category, about thing think So lots

you So about really a and segment competitor. specific talk

mind, in are for issue on real SLA as I So a in end. for is end, category, the there my example, seeing the than think the demand low people low

very platform competitive. are very, SLA Our

matter world. of much the do growth. you, proposition. a in And fact, a better As the we value category, But I'm telling I we have seeing that that in we are are best just believe

The MultiJet category. printing

very competitor. jewelry continue in and SLS. And in do success there. that and good The drive we very And Our think good we pressure, I share growing, is market overall, see SLS need a to that is have U.S. a under what But gains can product. segment is more we market pressure. to is is

plays Of course, segment. particular into HP that

our to in device think to very, I a believe healthcare much with healthcare, With do that focus with off. paying absolutely There, really grow is XXX the we a side, I in believe respect in our continues value XXXX. proposition. I that, do that to medical segment, have product, have Materialise, clearly, metals compete software that the we healthcare. innovative is I And better I medical the -- especially but competition much category we very on devices. for believe don't see don't In

focus the the one. macroeconomic we're in than But that to back, the trying right when be making and we market. are market be is faster sure now, right auto we doing comes profitability think the now able what is, market really view the I and My will industrial issue grow will on to

Operator

Our is Capital with Palm next Craig-Hallum Greg question from Group.

Gregory Palm

VJ, and Todd. welcome aboard,

see I'm it's you the sort of sequentially, I gives the anyway. what mostly bigger sales So the you of is? the starting of kind now? visibility pipeline a guess I scenarios. off just now, kind those with to just flush-type a of time December in QX tend that How the lot think due jump to given where right Normally, frame that's guidance. curious And so... of Is come budget sort developing

Vyomesh Joshi

No.

I market. I make in the to reflect. there think are think that's to what is trying we are trying And that we sure uncertainty just

focus that healthy, I flow. we and profitability on but want but prudent at and I look is do think really our revenue pipeline are to sure our cash not just profile to make I really want

that directionally, say, am So Whether the is what what of want with let's because out. we not Cost help, us." "Okay, digits think may minus, drive. cost and doing, take we I that's what company we talking that's out Todd's will really to enable be plus about that to make or it sure I really the mid-single are

the making are as I we take want but as as focus get to to we sure revenue think company much get, I can -- really on going the cost out. we

Gregory Palm

basis? on as an the if to on or think year helpful. you commentary, absolute That's either a can make for mean is care you cost Yes. long-term And do any next basis of I or either company don't maybe a I structure percentage. this you quantify what appropriate know sort

Vyomesh Joshi

of what margin I to that our do are margin. mid-XXs at kind size the we the in guidance structure. of be and how really first so terms mid-XXs I conservative in Look the -- we in our think out, in need the And that gross profitable? starting what let's -- -- have guideline we appropriately of just mind us think Well, the to half figure we growth. gives gross revenue then XXXX, is could be And saying,

we thing second manage make is capital to expenditure look that our cash. and we do that at to really the The want sure

team believe and of much pride are consuming to in do QX, inventory that sure a In on angle. that that my be making focus to revenue be we which revenue, so As quarter, cash, structure we'll I do you not get basically kind our really cash. I have, consumed because I in profitable. lower don't an at that that we right because the million And We $X.X want just we took we as we count having level generated need down, with as want revenue absolutely cash. take this saw that say, want continue tremendous think to I this the $X.X operating that use cash. I million on getting profitable to cost to we I of

Gregory Palm

sense. makes then Yes, is profitability in this in And your point goal at QX and starting obviously... 'XX

Vyomesh Joshi

I would say...

Todd Booth

profit half the expect We -- XXXX first year of profitability. non-GAAP

Gregory Palm

Yes.

would XD guess to mean sense are your and of obviously, first Todd, But of operating costs priorities about other I lastly, get some you near it some longer-term be just it on helpful I sort joining and what sounds then maybe are foremost. Systems? And excites like what Okay. here?

Todd Booth

stress I'll that. do

very but has going the just and company partnering excites VJ I'm with we're So the and the me. where generation, cash with and the we healthcare here the happy direction really have, and technology that on metals profitability with platforms software,

Operator

Our next comes from Jensen Piper with Jaffray. question Troy

Troy Jensen

little you for dive factory the at to this you to Quick Are is all we curious too, bit into handling that more know, you, earlier had I'm this year? comment Todd. VJ. Can problem And a metal related the Welcome, just in metal these... material made?

Vyomesh Joshi

things. exactly the Yes, same

think problem that. when lot of to solution electrostatic to, that a are we we root that the see, incredible that's a it you have ship we pay to reliability the any making really that sure part are are management cause. we and very sure progress. XXX, planning we issues. and you I and make to a moving clamp know need of attention so paused, things we with Troy, we tough We to up. what we unit the make that because over why And forces that wanted look So don't it's at are good And powder, And doesn't finding metal

thoroughly. than would a having years, been a product, testing want issue. that, I've been focusing And you That for know, last the fundamental quality it make sure. of We reliabilities a rather to I ship We Number three are one. thing has job. Quality, wait a as on.

taking yes, a believe an so, we And are solution. months, that absolutely it's to I but have going few incredible

you look an management actually, provide the that kind printer. there metal the if powder company are for there can which companies no marketplace, many this of unit at automatic are really not And --

that able we So this of proposition, want to will that right. end be ship in to we And it be solution QX. excited a will value we unique have but very a are do we

Troy Jensen

So for have and through confirming you you the are just a going problem, solution the final it's testing?

Vyomesh Joshi

Yes. Yes, yes.

Troy Jensen

Perfect.

then about -- give think for Okay. transparency. and just us appreciate great dollar flat margins, the Cool. And going mainly Todd, you how Sequentially, revenues go on you is guidance just help can OpEx down we on to or sequential up, basis basis, if to do a that sequentially?

Todd Booth

relatively a percentage Sure. we're to dollar up. down, go on as flat Slightly it So be going will a sales, of to basis slight but up.

look it of continue to to long-term need at You a we drive it more down. as

Troy Jensen

Yes, I this... figured

Vyomesh Joshi

think, on is -- the Troy, the you out. as taking focus cost But I

So you think three it X% last done for now operating in expenses. have we it, quarters that and -- the if about down overall, year-to-date,

to So of cash kind profitability -- generation. that continue I we to because up just company the to want set for would like see profile and

Troy Jensen

Yes.

about you How quick sir. Okay, just VJ. for

be give pipeline? Any on many? big update you a would us Is you there an production shipping great. for platforms Figure X? update could Have been Just

Vyomesh Joshi

now NextDent and what said, X. so we we finding extremely think well as -- material, dental doing think with are on I Figure our I So are I

about, customers an that BLK materials BLK I With where the very is consumer the they have new excited have Troy, customer doing workflows will really any able material, be especially -- in They we the of material X using I to believe Out they end-user to this part find material. for we very it with the -- these healthcare, without provided think excited. production a about. this that we production tooling. The they XX, time, in beta think which XX talked XX want game-changing are the electronics of could I really with X have parts that lot fundamentally new that first materials, a industry, I'm be production

time think into be a go the be will to service this the will excited segment. able very be with industrial We they to getting able doing. And short because very the for are even on will production they turnaround bureaus I parts runs also that use

I innovative that XX really think So a is really BLK material.

is the people about because of one talk TEMP HI other high lot The temperature. a

centigrade, I really have think be think lot this HI first really the is important the is time, automotive, to another a XXX-degree of going think to now, we which hood. new under going for TEMP in I applications up for I open very, very material. material

us doing will I very a kind healthcare That's The believe elastomeric biocompatible a applications. And allow material. the silicon application, then which EGGSHELL, go is of innovative to into also but an of material molding. for kind do

all with have the I I the product, we have think told sites, dental, we materials, industrial I and the seeing materials -- with were beta NextDent. plus always for I we the change that right one production you both do our that And trajectory. also. the the In right now believe, think modular, I'm have right, our from getting we stand-alone our shown you, feedback with and arrived really new can that whenever software and

these excited about very So I'm materials.

Operator

Drab Blair. next with William is Our from Brian question

Brian Drab

First, talking SG&A. R&D cost I've And on lot it's had time I think a call, really here. we're interesting reductions, about enough this and that

about over the talking And about going that on million about over OpEx. $XX the had at quarter, So used from And of and it at the and two at to third flat in $XX with OpEx there. in call quarter I and forward. per transcript, to was listening reference word time, million going looked now we're down quarters us you we're you to and wanted was think quarter call that how the second

you specifically shift you're you the in manage how related not want to how thinking is Is -- to this are joining? what Todd adjusting... So company? about a this Like

Vyomesh Joshi

No, no.

one. started XXXX quarter I is think think this I -- something there I in accelerating no,

that take aggressive. in what already, Then flat, flat get also, meaning And the first think think we X% be and want were that time we I our at seeing you year-to-date, saying. XX% in out right? -- months. expenses I, the we John nine what operating for And to sequentially. we in when we That's SG&A and could same took see it were R&D but the I time, we'll at

So this this company that's path not what about much are on like a profitable the -- I so have we I And This quarter is talking was on. you think it. would when have uncertainty. rather because I'm smaller we are focused

you believe My on expensive a get platforms. view of that once growth materials of have put R&D I are we you R&D all kind spend the paying -- is, to designing is is And more solution develop that very relying right of a platforms. important cost we and had off the whenever also uncertainty, get platforms you're rather their to profile have said, once the very that the Because very workflow because have be want other to platforms. sizing. And important is the not thing which our revenue going than you to of that developed, kind that we right is on software, right

software that. saying investment I've the must been the and material. be consistently Now in

to make we to this have do Yes? has is right thing. want thing. something last quarter we really been been on, like Brian, focused want and that So sure not the This we

Brian Drab

flat, going last the over Okay. Yes. I mid-August, over it's long is flat, and forward. and -- it call mean though, it flat ago that was wasn't

down question. reason Then now it the sounds was I down, the the asked message. like is that So down, it's

you... that's So shift a like for

Vyomesh Joshi

quarter, you But if -- it year-over-year, then look out. at gone we have you you every if could down check

Brian Drab

I'm it. No. at looking Yes.

guess, And the one to then just could understood margin. want I gross sure I question, on just I I Okay. ask make philosophy. other if

So could forward. summarize gross quite why this from kind if going new a what in what I is higher we're wonder bit expecting the the just mid-XXs just past. margin model and shifting sounds is you profile higher XXs... like of It was

Vyomesh Joshi

-- to the the because want a sure want going revenue do inventory So to thing that, on actual the I reduce based -- factory that this do going when And we think revenue is is that is be the your you first while we utilization you down. to factor. yes, profile, make

And that in driving was the so to the make I utilization gross having pay want we and forces that of margin. attention one sure key lower

at that is -- The to we you thing do been to is production that second also mix reason then that we inventory third because we the the make is really are when the mix then That look the And you will want a adjustments. materials want to that a gross second driving margin do the we the category, and of ensure shipping in also. is our sure one have are we inventory the mix different have margin production platforms. gross what

the margin, looking X So those think, I think profile, right gross the are is way we are do to the to in things. getting I mid-XXs And thing at I our do. believe that now, the the

Operator

question Jim & comes Needham next Ricchiuti, from Our Company.

Michael Cikos

on This today. Jim is Mike for Ricchiuti Cikos

make I on sure First and resolution. correctly. the that. question I the heard was about just to Congratulations contracts government wanted that

in So QX was the the bit hangover guess because activity. pipeline a to this I sounds there's going like be by impacted of a it

to expectation wanted the that off into Or there So make you will, move some second, And first, needs then pipeline to hangover, that, be XXXX? I is guess, races? that to I gone confirm QX if to is will activity is backfilled as the that. still that be we sure

Vyomesh Joshi

Yes.

There in one particular two I of that the with think I sure work to thing. are is which make parts Air government government now have to export we just there want compliance. -- And but the then just Force there's understand we suspension, you do had our So is it then lifted is order lifted about. which and we And the talked -- September.

over talked So for that business. We the the have the to -- in for ODM especially pipeline to still QX. do about that work I

business do should come believe lead I cycles will -- that back. the generally, the sales But long it's it cycle. are sales

had, So on much some in especially should that we have quarter in there starting on, QX. be we second will in I impact the not also But as impact QX. think suspension

Michael Cikos

look is Okay. shoots? shifting weaker That's reason markets. get seen. the market, indications are there the to some we've automotive Or you pockets all green we then term? that obviously, be But market And you If might on based about just any near excited more helpful. at seeing any seeing where there

Vyomesh Joshi

automotive the about? Meaning you're market talking

Michael Cikos

Yes.

Vyomesh Joshi

Yes.

is think weak. I automotive market So globally

If to very they're our in not really plus, innovative has parts a on, industry that kinds vehicles. there doing market innovative market, clearly, -- certain fixtures And People a that reasons. market. companies, cars, And that about weakness electric prototyping electric we of read kind And when a solution and kind you our overall, electric are important. design you everything, the is But as impact lot talk auto for Uber, are of I cars automotive have jigs for lot of reasons. and think do. they using of Actually, to lot many asking applications, are which on-demand used to and market are manufacturing. there still new of doing are of additive all for models those a

using that technology. So engaged part innovative new still we see really this us and with

Operator

Melanie turn would There are no the other questions like to at remarks. over this time. for closing call Melanie? Solomon to back I

Melanie Solomon

after section of Thank us support continued the XD replay joining you, Relations in good the our Thank night. for you A for this available all and website. be of webcast today, will Systems. call Investor your of

Operator

conference. today's concludes This

this participation. time, your you thank disconnect for at lines and we your may You

3D Systems (DDD) 30 Oct 192019 Q3 Earnings call transcript