What happened

Shares of "additive manufacturing" (that's "3D printing" to most of us) company 3D Systems (DDD 1.81%) are tumbling, down 10% as of 10:25 a.m. EDT. The reason: earnings.

Yesterday, after close of trading, 3D released its financial results for Q2 2020, reporting $112.1 million in quarterly sales (Wall Street wanted to see $117.9 million) and a $0.13 per-share pro forma loss -- where the Street had predicted only a $0.10 loss.

A glowing red stock chart arrow trending down

Image source: Getty Images.

So what

And that's the good news. The bad news is that, when calculated according to generally accepted accounting principles (GAAP), 3D actually lost more than twice its pro forma number -- $0.33 per share, a result 57% worse than last year's $0.21 Q2 loss. The sales decline, by the way, was 29% year over year.  

Now what

As you might expect, 3D blamed a once-in-a-century occurrence for its troubles: the "continued impact from the COVID-19 pandemic." To combat it, the company is taking dramatic moves to save itself. Among other things, 3D says it will try to cut $100 million out of its operating cost structure -- an effort that, if successful, will cut operating costs by roughly one-third. 3D will lay off 20% of its workforce, making other cuts to accomplish this, and will take a $25 million to $30 million cash charge "for severance, facility closing and other costs, primarily in the second half of this year," to pay for the cuts.

In addition, 3D announced today that it will be raising about $150 million in cash through the issuance and sale of new shares, diluting current shareholders out of about 17% of their ownership. With cash reserves down by more than half over the last six months, and free cash flow now turned negative, the company really has no other choice.