3D Systems said that its fourth quarter sales will be well above targets and that it will take a hefty goodwill write-down.
The sales outlook was a rare batch of good news in the 3D printer sector, which has been rattled by slower capital spending, decreased manufacturing and a pause ahead of HP's entry into the market.
In a statement, 3D Systems said it expects fourth quarter sales to be about $183 million, well above the $161 million expected. 3D Systems' sales have missed expectations the last six quarters, according to Thomson Reuters.
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However, 3D Systems did say that it will take a non-cash goodwill charge of $510 million to $570 million. Companies typically evaluate the value of intangibles and previous acquisitions in the fourth quarter. 3D Systems, like its rival Stratasys, has largely reached scale via acquisitions.
Interim CEO Andy Johnson said that "industry conditions remain challenging and demand may be uneven in the coming periods," but long-term prospects are promising. The company will release its fourth quarter results Feb. 29.
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