* Second-quarter revenue $151.5 mln vs est $162.3 mln
* Adjusted profit $0.16/share vs est $0.18/share
* Sees full-year revenue $700 mln-$740 mln, vs est $713.8
* Shares down as much as 14 pct
(Adds executive, analyst comment; updates shares)
By Subrat Patnaik
July 31 3D Systems Corp's quarterly
profit missed the average analyst estimate, as higher costs
associated with the launch of new products ate into the
three-dimensional printer maker's profit margins.
The company's shares fell as much as 14 percent in heavy
morning trading, making it one of the top percentage losers on
the New York Stock Exchange.
3D Systems is still absorbing the costs it incurred while
launching a number of new products over the past few quarters,
Janney Montgomery Scott analyst John Baliotti told Reuters,
adding that not all of these products had started selling yet.
3D Systems had said in April that it expected to get most of
the revenue and profit it forecast for 2014 in the second half
of the year.
The company now expects to liquidate $15.1 million of new
product inventory buildup by the end of 2014, Chief Financial
Officer Damon Gregoire said on a post-earnings conference call
"The second half of the year should show the benefit of the
costs they incurred in the first half," Baliotti said.
3D Systems' operating costs rose more than 50 percent to $68
million in the second quarter ended June 30.
Product launches and the company's attempts to increase its
manufacturing capacity also weighed on gross margins, which
shrank 4 percentage points to 47.8 percent.
The nascent 3D printer industry has generated a lot of
investor interest over the past couple of years, but has also
drawn criticism from some analysts for being over-hyped and
Net income attributable to the company fell to $2.1 million,
or 2 cents per share, from $9.3 million, or 10 cents per share,
a year earlier.
Excluding items, the company earned 16 cents per share.
Revenue rose to $151.5 million from $120.8 million.
Analysts on average had expected a profit of 18 cents per
share on revenue of $162.3 million, according to Thomson Reuters
3D Systems said it now expects 2014 revenue of $700
million-$740 million, up from $695 million to $735 million.
Analysts on average expect the company to post full-year
revenue of $713.8 million.
3D Systems shares were down trading down 9.6 percent at
Shares of rival 3D printer makers Voxeljet AG,
Exone Co and Statasys Ltd were down more than
4 percent on Thursday.
(Additional reporting by Lehar Maan in Bangalore; Editing by
Joyjeet Das and Simon Jennings)