Geo Week News

April 30, 2013

3D Systems hits record Q1 sales; sells 81% more 3D printers in first quarter

Quarterly sales of consumer 3D printers jumps 85%

3D Systems Corporation on Tuesday reported record quarterly revenue of $102.1 million, up 31 percent, on 81 percent higher printer sales.

First quarter net income dropped to $5.9 million, or 6 cents per share, but excluding one-time items, the Rock Hill, S.C.-based company earned 21 cents per share meeting analysts’ expectations.

 3D Systems (NYSE: DDD) sells 3D commercial and consumer printers, printing materials and software services as well as CAD modeling, reverse engineering and inspection software tools.

“We expect 2013 to be our most exciting and most productive new product introduction year in the history of the company,” said CEO Abraham Reichental.

Shares of 3D Systems jumped over 9 percent to hit $38.97 in afternoon trading Tuesday before closing at $38.24. The company’s 52-week stock price ranges from $17.04 to $47.99. The company has a market capitalization of $3.5 billion and a P/E ratio of 75.62.

Sales broken down:

  • 3D printers and other products revenue grew 61 percent to $39.7 million
    • 3D printers contributed $31.8 million, a 43 percent increase
    • sales of combined professional and production printers increased 41 percent
    • sales of its personal printers revenue increased 85 percent 
  • 3D print materials grew $4.1 million to $28.7 million and made up 28 percent of total revenue
  • Services revenue – a third of total quarterly revenue – increased $5.1 million to $33.6 million

The company increased its R&D expenditures by $1.6 million, or 32 percent, to $6.5 million compared to last year in support of its expanded product portfolio and extended its sales channels and printer manufacturing capacity. That appears to have paid off as first quarter revenue from new products grew 60 percent to $38.3 million.

    “We expect 2013 to be our most exciting new product introduction year ever, and as a reminder, we track new product revenue only for the first three years of a product’s commercial life,” the company said.

    Reichental said the company has two big growth opportunities. “In the here and now, and in the near term, it’s the migration from the traditional [sand]box of rapid prototyping firmly into advanced manufacturing opportunities, both in aerospace, automotive, and healthcare, with patient-specific medical devices,” he said. “And equally as excited about the opportunity in consumer. The advanced manufacturing opportunity is more obvious and more mature and actionable in the here and now. The consumer one we’re continuing to develop, and we’re very gratified by the results.”

    Meanwhile, healthcare solution revenue contributed $14.1 million to total first quarter revenue, on moderate growth as a result of timing of printer sales.

    “We expect the overall healthcare growth trajectory for the full year to remain robust,” Reichental said.

    The company’s 2013 outlook calls for EPS $1-$1.15 on revenue of $440 million to $485 million.

    First quarter full of new product rollouts

    3D Systems debuted several new products in the first quarter including personal and professional 3D printers, designer software packages and consumer apps.

    In January, 3D Systems launched its second generation home 3D printer, the Cube, with greater selection of printing materials, including recyclable ABS plastic and compostable PLA plastic in new colors.

    The same month, the company launched its next generation desktop printer, CubeX, with the largest print volume in its category, triple color printing and multiple print modes and settings.

    Reichental said sales of the company’s recently launched Cube and CubeX 3D printers are “at the top end of our expectations.”

    Since the beginning of the year, 3D Systems launched eight commercialized models of its new ProJet 3510 3D professional printers that produce higher definition printed parts. Just recently, the company launched the new ProJet X60 series of full color professional printers.

    In late February, 3D Systems acquired Geomagic, Inc., the leading global provider of 3D authoring software including design, sculpt and scan tools used to create 3D content and inspect products throughout the entire design and manufacturing process.

    The fair value of the consideration paid for this acquisition, net of cash acquired, was $52,687, all of which was paid in cash, 3D Systems said. The acquisition is not significant to the company’s operating results, it said.

    Earlier this month, 3D Systems rolled out Geomagic Design, a new suite of CAD design software, in personal, professional and expert versions.

    “We continue to experience positive sales momentum that is shaped primarily by increased demand from advanced manufacturing activities. While we may face lingering economic uncertainties in parts of the world, we expect to continue to benefit from robust R&D and manufacturing spending by our customers worldwide,” said Reichental.

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