Arcam AB Kicks Off the 3-D Printing Q2 Earnings Season With Weak Results

Despite the drop in revenue and earnings, there was some good news in Arcam's second-quarter results.

Jul 18, 2014 at 9:43AM

Swedish industrial metals 3-D printing company Arcam (NASDAQOTH:AMAVF)reported weak second-quarter 2014 earnings before the Stockholm exchange opened today. Arcam, which sells its electron beam melting 3-D printing systems to the orthopedic implant and aerospace markets, is the first company in the volatile 3-D printing sector to report Q2 results.

After initially dropping more than 11% on the Stockholm exchange, Arcam's stock price is now down about 8% in mid-day trading. Markets in the U.S. have not yet opened. (Arcam is listed on the Nasdaq OMX Stockholm, but it also trades over the counter in the U.S.)

Arcam

Source: Arcam.

Arcam's Q2 results 
Here are the highlights: 

  • Revenue decreased by 14.6% to 46.1 million Swedish krona (MSEK), or about $6.75 million, from 54 MSEK in the year-ago period.
  • Net income plummeted 95% to 400,000 Swedish krona (SEK), or about $58,568, from 7.5 MSEK. 
  • Earnings per share dropped to 0.02 SEK, or about $0.003, from 0.47 SEK, or about $0.07. (Note: These numbers should be very close. Arcam only list EPS (and certain other data) for the six-month period, so quarterly EPS (and other data) has to be calculated. Additionally, the number of shares changed, so there were a couple calculations involved. At a minimum, Arcam should release its quarterly EPS on its quarterly earnings releases, as is customary. Further, it would also be a plus if the company included equivalent U.S. dollars in its financial releases. (The company would draw more U.S. investors, in my opinion, if it didn't make folks jump through hoops to obtain basic data.)
  • Four (4) electron beam melting systems were delivered versus seven (7) in the year-ago period.

There's no way to spin the quarterly financial results as anything but weak. Revenue was down somewhat, earnings were down even more (which means that margins contracted), and the company delivered only four 3-D printers, three fewer than in the second quarter of 2013. Additionally, on a pro forma basis, revenue (and possibly earnings) was surely down an even greater percentage, as Arcam completed the acquisition of the metal powder manufacturer AP&C in mid-February 2014. So AP&C's revenue was included in this year's Q2 results.

The forward-looking good news: increase in new orders
There is some good news: Arcam received 10 orders for 3-D printers in the quarter, which is three more than in the prior-year's quarter. Order backlog at the end of the second quarter was 16, versus 13 at the end of the second quarter of last year. (Note: While Arcam's current release lists 13 printers as the backlog for the year-ago period, the company's Q2 2013 earnings release shows 12 as the backlog at the end of the quarter. However, 13 was the backlog at the time of the earnings report. My guess is that 12 is the correct number, and this is likely a Swedish to English translation issue.)

At the time of this writing, Arcam had only released its earnings highlights, rather than its full results, so I can only provide results, not an analysis at this point. Stay tuned, Foolish investors! 

The best way to play the disruptive 3-D printing sector? Find out here!
Our Motley Fool analysts believe the stocks named in this video are the best way to play the 3-D printing sector, which could be "the next trillion dollar industry." 

Beth McKenna has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers