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Healthcare business performance 3D Systems’ healthcare business, which includes both products and services, has generally been a bright spot amid what’s proved to be challenging overall 3D printing market conditions since 2015. We’d like to see this revenue growth driver continue to chug along. (The company only breaks out revenue, not operating income or any form of earnings.) As for benchmarks, the healthcare business’ year-over-year revenue increased 12%, 11%, and 23% in the first, second, and third quarters of2016, respectively, and 5% in full-year 2016. As with 3D printer revenue, 3D Systems did not break out the year-over-year revenue change in the fourth quarter of last year. However, it’s obvious from the numbers we do have that the healthcare business performed poorly in the fourth quarter. One thing investors should keep in mind is that healthcare revenue and total revenue will get a boost from the company’s January acquisition of NextDent’s portfolio of 12 dental materials, which have regulatory approvals in numerous countries. Ideally, 3D Systems will also provide an organic growth rate for its healthcare business, stripping out the revenue contribution that this acquisition made in the first quarter, so we can compare apples to apples. (Organic growth is growth in businesses owned for at least one year.) 3. Interest in Figure 4 Hopefully, management will provide some information on the conference call about interest in Figure 4, which is 3D Systems’ next-generation technology designed for the production of plastic parts. Figure 4 is a robotic, modular stereolithography (SLA) 3D printing system that the company claims is up to 50 times faster than conventional SLA 3D printing systems.
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