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Prodways Group reports financial results for Q1 2020

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French 3D printer manufacturer and service provider Prodways Group has reported its financial earnings for the first quarter of 2020. 

Consolidated revenue for the three months ended March 31, 2020, amounted to €15.5 million, representing a decrease of 11 percent from Q1 2019, which was  €17.4 million.

With a mandatory home confinement order issued in mid-March, the effects of the COVID-19 pandemic have had a direct impact on Prodways’ revenue for the quarter. Some of the company’s short-cycle activities, particularly in the medical sector, have been affected by the lockdown measures in place in the countries where Prodways operates. 

3D printed products from Prodways. Image via Prodways
3D printed products from Prodways. Image via Prodways

Prodways Group Q1 2020 revenue

Prodways’ financial results are reported across two divisions: Products and Systems. Products refers to the company’s revenue generated from the design and manufacture of on-demand parts and medical applications. The Systems division, on the other hand, comprises 3D software, 3D printers, and related materials and services.

For Q1 2020, Systems contributed €9.8 million of the total €15.5 million revenue for Prodways. This figure represents a 6.3 percent decrease from the same period in 2019. The company explains that its Machines and Software activities posted a slowdown, however, its Materials activity performed well, up by 25 percent. 

Prodways states that the positive performance of its Materials revenue reflects the increase in installed base of 3D printers dedicated to production applications. As such, the company was able to secure major contracts in its liquid resin sales activity with two European dental specialists during Q1 2020. According to Prodways, both these firms alone are expected to use several dozens of tonnes of materials once their production cycles have stabilized.

(in € millions) Q1 2020 Q1 2019 Change
Systems 9.8 10.5 -6.3%
Products 5.6 7 -19.6%
Structure & disposals 0 -0.1 nm
Consolidated revenue 15.5 17.4 -11.00%

The Products division posted revenue of €5.6 million in Q1 2020, down 19.6% compared to the €7 million generated for the same period in 2019. Prodways’ medical activities (audiology, chiropody and dental) were affected by the sudden shutdown of its customers’ operations as of mid-March, with the total closure of most practitioners’ offices, bringing these businesses to a halt. The health crisis caused by the COVID-19 pandemic has also slowed down the company’s revenue from parts production, however this line of business is still in operation. Prodways explains that measures have been implemented to adapt the production environment and ensure people’s safety.

Activity in Q1 2020

Prodways posted a number of updates throughout the first quarter of 2020, including a series of 3D printer sales to major chemical companies for R&D and manufacturing applications. The company sold a selection of its selective laser sintering machines to DSM, BASF, and an unnamed French chemical company, including its ProMaker P1000 and ProMaker P2000 ST 3D printers. 

The company also announced that it will act as a reseller for 3DBioCAD, the dental CAD/CAM division of B&B Dental Ceramic Arts’ full-service dental laboratory. Prodways will be the first dental reseller for the Renton-based company, strengthening its footprint in the US. Prodways also revealed it was working with automotive manufacturing company Continental Engineering Services to 3D print tools and prototypes.

Additionally, the company announced that it had acquired a minority stake in its North American partner XD Innovation, a Dassault Systèmes Value Solutions Partner that supports customers in the energy, defense, automotive, and aerospace sectors.

ProMaker P1000 3D printer. Image via Prodways.
ProMaker P1000 3D printer. Image via Prodways.

Pandemic response and outlook for 2020

Prodways explains that it has taken steps to reduce its costs and adjust its production facilities since the start of the coronavirus crisis. The company adapted its on-site activities to protect the health of its employees and implemented a business continuity plan and partial activity measures for nearly 50% of its employees in France and abroad.

Prodways’ teams across Europe and North America have joined forces to help support the fight against COVID-19 through 3D printing certification. In partnership with its network of customers, the company has made its 3D printers available to manufacture parts used in protective face shields in order to address the needs of the medical professionals.  

On its 2020 outlook, Prodways states that it has taken all the necessary measures to best adapt to government recommendations and plans to resume certain activities as soon as it has secured the necessary means and fulfilled employee safety conditions. The company has available cash and cash equivalents of €20 million as of 31 March 2020.

Prodways expects a considerable impact on its Q2 income statement, with its activity having remained heavily disrupted in April,…