3D printing maker boosts production to meet growing demand for products
3D printing manufacturer 3D Systems Corp. (3DS) Tuesday posted a 58 percent jump in second quarter operating expenses leading to quarterly profit of $9.3 million, or $0.10 a share, missing analysts’ expectations.
The Rock Hill, S.C.-based company’s stock fell more than 10 percent Tuesday after results were announced before rebounding to $46.75 in mid-morning trading.
3DS (NYSE: DDD) manufactures and markets commercial and consumer 3D printers, printing materials and software services as well as CAD modeling, reverse engineering and inspection software tools.
Sales for the quarter were up 45 percent to $120.5 million, beating analysts’ estimates of $114.6 million. 3D printer sales more than doubled to $54.2 million in the second quarter, due mainly to better sales of its professional printers, the company said.
3Ds debuted several new products during the second quarter including professional 3D printers, advanced 3D print materials and new designer software packages.
“Factoring the significant increase of inbound interest, in the period we made the affirmative decision to step up certain discretionary expenses to accelerate the adoption of our products and services,” said Reichental
3DS said it nearly doubled R&D spending, boosted spending on marketing, and cranked up manufacturing capacity during the second quarter to meet growing demand.
The company said it expects a material revenue contribution from its consumer business, which includes its Cube printer, from the second half of the year.
3DS set fiscal year 2013 guidance at $1.05-1.20 earnings per share; analysts’ expectations are for $1.06 EPS. The company’s FY2013 revenue guidance of $485-510 million beats analysts’ expectations of $483.92 million.
The company’s 52-week stock price ranges from $21.57 to $51.94. 3DS has a market cap of $4.4 billion and a P/E ratio of 102.51.