Avi Reichental
3D printing giant 3D Systems (NYSE:DDD) has revealed that its revenue for the third quarter of 2013 has grown by 50 per cent year on year to a record $135.7 million (£84.3 million, €98.6 million).
This is on the back of a 76 per cent increase in printers and revenue from other products, and 30 per cent overall organic growth, resulting in GAAP earnings of $0.17 per share and non-GAAP earnings of $0.26 per share.
CEO and President of 3D Systems Avi Reichental commented: "We are very pleased to report another record revenue quarter on unprecedented printer units demand that more than tripled last year's unit sales.
"Stronger materials sales, increased advanced manufacturing activities and meaningful consumer products revenue contribution fueled our growth. We are accelerating developments of key products, channels and technologies to capture a broader share of upstream production applications and downstream consumer opportunities."
3D Systems' gross profit increased by 52 per cent and gross profit margin has grown by 80 basis points to 52.6 per cent, contributing to GAAP net income of $17.7 million and non-GAAP net income of $26.2 million. This represents an improvement of 44 per cent over the same three-month period in 2012.
For the first nine months of 2013, revenue jumped by 42 per cent to $358.6 million on an 81 per cent increase in demand for 3D printers and other products and 27 per cent organic growth. Gross profit increased by 46 per cent and gross profit margin expanded by 120 basis points to 52.3 per cent.
Moreover, print materials revenue rose by 30 per cent to $33.2 million, services revenue increased by 38 per cent to $42.7 million and consumer solutions contributed $13.5 million to 3D Systems' total revenue.
The industry juggernaut has continued to up its research and development and marketing activities over the past quarter, investing in support of its near-term opportunities and expanding portfolio of products, which spans the entire 3D printing spectrum.
The July-September period was the third consecutive quarter 3D Systems expanded its manufacturing capacity to accommodate increasing demand for its products and services.
Moreover, the company has received much interest in its recent acquisition of metal 3D printer experts Phenix Systems, a deal that has also compelled the business to increase its revenue guidance to be in the range of $500 million to $530 million and - consistent with the rise in discretionary expenditure - reducing non-GAAP earnings per share guidance to between $0.93 and $1.03.
Reichental concluded: "For the next few periods we are going for accelerated market-share expansion ahead of earnings per share. We believe that our portfolio's diversity, ranging from direct metal printers at the high end to desktop consumer printers at the low end, is best positioned to capture this unprecedented market opportunity, and expect that our decisive actions will extend our first mover advantage in key verticals. With the fundamentals of our business model remaining intact, we fully expect that the higher investments we are making currently will favourably influence our results in the coming periods."
At close of play last night (October 28th) 3D Systems shares on the New York Stock Exchange fell by 2.8 per cent to $56.98 per unit.
