3D Systems (NYSE:DDD) has reported optimistic results for its first quarter despite a choppy ride on the markets, which saw the industry giant sink from $96 per unit to sub-$50.
Despite the bearish atmosphere, 3D Systems has been business as usual, reporting a rise in Q1 revenues of 45 per cent year-on-year to $147.8 million on 28 per cent overall organic growth.
Increased demand across the board for 3D Systems' products and services was powered by a 76 per cent surge in unit sales growth of 3D printers for design and manufacturing applications, while advanced 3D printers helped accelerate the growth rate of materials to 41 per cent, delivering a record $40 million in revenue for the company.
This growth is especially positive when compared to the company's progress report 12 months ago. This time last year, 3D Systems was reporting first quarter revenues of just 31 per cent year-on-year to $102 million. Nevertheless, in the first quarter of 2013, 3D printer revenue was up by 81 per cent.
The highlights of the January-March period included a year-on-year rise in 3D printer revenues to $60.8 million, services revenue increase to $46.6 million, healthcare revenue increase to $21.7 million and consumer revenue hike to $9.7 million.
Furthermore, the first quarter saw a continued investment in research and development, while the company signed more deals to acquire innovative firms within the 3D printing arena, including Robtec and Medical Modeling.
CEO Avi Reichental stated: "Our first quarter results reflect expanding demand across all of our revenue categories, led by strong 76 per cent unit sales growth of design and manufacturing printers and the ongoing placement of manufacturing printers that continued to increase the growth rate of materials.
"We believe that 3D printing is on the cusp of accelerated design and manufacturing adoption and the ultimate measure of our success will be the value we create from our market share and scale gains over time. While our stepped up strategy and investments continue to pressure our quarterly earnings, we believe that our actions set the stage to substantially compress the time required to deliver greater value. Accordingly, we expect operating leverage to resume in the second half of 2015 and be fully restored the following year."
3D Systems has reiterated its guidance for 2014, anticipating revenue to range between $680 million and $720 million.
At start of play in Manhattan this morning (April 29th), shares in 3D Systems were down by nearly 10 per cent to $44.49 per share.