3D printer manufacturer eyes market share as it boosts spending on R&D, marketing
3D Systems, Inc. reported Tuesday third quarter earnings per share of $0.26, a 24 percent increase, on record third quarter revenue of $135.7 million, up 50 percent compared to last year’s third quarter.
Shares of the Rock Hill, S.C.-based company closed at a record high Tuesday of $59.83, up 5 percent for the day, with trading volume more than double the average. 3D Systems has a market cap of $6.1 billion and a P/E ratio of 132.87.
Avi Reichental, 3D Systems CEO, said demand for printer units was “unprecedented” during the quarter. Earnings for the quarter were inline with analysts’ estimates, and revenue beat expectations by $3.7 million.
The company said sales of printers and other products soared 76 percent to $59.8 million, print materials revenue grew 30 percent to $33.2 million. and overall organic growth grew 30 percent.
3D Systems also boosted its full-year 2013 revenue guidance, but lowered the outlook for earnings due to heavier spend on R&D and sales and marketing in order to grab market share. In the third quarter alone, the company’s R&D expenses soared 95 percent to $10.8 million.
“For the next few periods, we are going for accelerated market-share expansion ahead of earnings per share,” Reichental said.
Based on the quarterly results, the company increased its revenue guidance for 2013 to be in the range of $500 million to $530 million, ahead of analysts’ estimates. But due to increased spending EPS guidance was lowered to a range of $0.93 to $1.03 versus consensus estimates of $1.01.
In related news, 3D Systems on Tuesday rolled out new consumer modeling, parametric CAD software called Cubify Design.
How it works : Cubify Design
The software is based on “foundational skills mastered in entry-level Cubify Invent and completes the advanced 3D printing toolbox for CubeX users,” the company said.
Cubify Design costs $199 and has a 14-day free trial.