As predicted, 3D Systems (NYSE:DDD) has buoyed investor hopes this week with an impressive first quarter earnings report.
The industry giant rallied by 2.3 per cent shortly after the teleconference held by President and Chief Executive Officer Avi Reichental, sending shares in DDD up to $36.62 per unit.
3D Systems reported non-GAAP earnings of 21 cents per share - which was in-line with or better than analyst predictions - for the first three months of 2013. GAAP earnings were posted as being six cents per share.
The organisation reported that its first-quarter revenue increased by nearly one-third (31 per cent) year-on-year to $102.1 million (£65.6 million, €77.4 million). This was thanks to a 61 per cent rise in revenue generated by printer and other product sales and 22.1 per cent overall organic growth.
Gross profit rocketed by 38 per cent and gross profit margin expanded by 250 basis points to 52.4 per cent.
3D Systems anticipates it will continue to benefit from investment in research and development and manufacturing in spite of economic uncertainties in some parts of the world.
During the first quarter of 2013, 3D Systems introduced significant new products to its portfolio, including both personal and industrial 3D printers, powerful design software suites and consumer apps. The business also upped its research and development spend by $1.6 million compared to 2012 in support of its larger range of products and services, while it has also broadened the reach of its sales channels and manufacturing capacity.
Mr Reichental commented: "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 research and development and manufacturing spending by our customers worldwide."
3D Systems ended March 2013 with $110.5 million in cash driven by $10.7 million of cash from operations.