By Poco a poco (Own work), via Wikimedia Commons
Wall Street by Poco a poco (Own work), via Wikimedia Commons
Wall Street
3D Systems (NYSE: DDD) has dazzled the tech investor set yet again with a robust parcel of second quarter results.
The industry giant announced this week that its revenues for the April-June period of 2013 increased by 45 per cent from the previous year to $120.8 million (£79.6 million) on a 108 per cent rise in revenue made from printers and other products.
3D Systems reported 30 per cent overall organic growth resulting in GAAP earnings of $0.10 per share and non-GAAP earnings of $0.20 per share.
3D Systems' President, CEO and TCT Show + Personalize keynote speaker Avi Reichental commented: "We are pleased to report record revenue and expanded gross profit margin.
"We believe that our effective advanced manufacturing and consumer growth initiatives are fueling our growth. 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."
Gross profit soared by 46 per cent and the gross profit margin expanded by 40 basis points to 51.8 per cent.
Looking at the first half of the year, revenue for 3D Systems has risen by 38 per cent to $222.9 million on an 85 per cent printers and other products revenue increase and 26 per cent organic growth.
Reichental said he was "pleased to report record growth revenue and expanded gross profit margin".
"We believe that our effective advanced manufacturing and consumer growth initiatives are fueling our growth. We are experiencing heavy demand for our advanced manufacturing and consumer solutions and expect to continue to benefit from accelerated adoption of our products and services that is driven by our customers' robust R&D and manufacturing spending worldwide," he stated.
3D printers and other products revenue for the second quarter of 2013 increased by more than twofold to $52.2 million on the back of professional printer units. Revenue from print materials also grew, rising by £3.1 million year-on-year to $29.3 million and services revenue jumped to $37.3 million,
During the three-month period, the company introduces new products including professional 3D printers, advanced 3D print materials and new design programs to its portfolio, while also setting up new merger deals including the acquisition of Phenix Systems and Rapid Product Development Group.
3D Systems nearly doubled its R&D expenditure and turned up the heat on its marketing spending strategy over the second quarter to support near-term opportunities, while it also expanded its manufacturing capacity amid heavier demand for products and services.
Higher costs from its strategic R&D and marketing initiatives and the drag from the Phenix Systems acquisition have meant 3D Systems has reiterated its annual guidance for the entire year, anticipating revenue to be in the range of $485 million to $510 million.
When the New York Stock Exchange closed trading yesterday (July 31st), 3D Systems shares were down by 1.9 per cent following a spike preceding the announcement of the results.
