* Second-quarter adjusted earnings $0.20/share vs est $0.24
* Revenue $120.8 mln vs est $114.5 mln
* Shares of rivals also fall
(Adds details from conference call and analysts' comments;
By Sruthi Ramakrishnan
July 30 3D Systems Corp's quarterly
profit miss and concerns over slowing growth in its gross margin
pushed shares of the 3D printer maker down 11 percent in early
Analysts said 3D Systems may not be able to meet its
full-year forecast due to the slowing growth in its high-margin
printing materials business.
Revenue from the high-margin print materials rose only 11.8
percent to $29.3 million in the quarter, compared with a 60
percent jump a year earlier.
"People are kind of drawing a line and saying if the mix is
going to continue to favor machines over materials, the gross
margin increase that you need to actually get to the guidance
can be difficult to envision," BB&T Capital Markets analyst
Holden Lewis told Reuters.
Gross profit margin expanded 40 basis points to 51.8 percent
in the second quarter, compared with 570 basis points to 51.4
percent a year earlier.
The company backed its adjusted earnings forecast of $1.05
to $1.20 per share on revenue of $460 million to $510 million
for the year.
Printing material sales usually accompany higher sales of
production printers, which analysts estimate sell for between
$10,000 and $1 million.
Revenue from 3D printers and other products more than
doubled to $54.2 million in the second quarter, primarily on
higher sales of professional printer units, the company said.
"The anticipated leverage from higher-margin materials sales
is not being expressed in the business model, raising questions
regarding utilization rates on new machines," JP Morgan analyst
Paul Coster wrote in a note.
Sales of production printers boost demand for printing
materials as buyers usually stock up.
Revenue from sales of professional and production printers
grew 78 percent in the quarter, Chief Financial Officer Damon
Gregoire said on a conference call with analysts.
Net income rose to $9.3 million, or 10 cents per share, in
the second quarter, from $8.3 million, or 11 cents per share, a
Earnings per share fell in the latest quarter as the number
of shares outstanding increased following a public offering in
Operating expenses jumped 58 percent jump during the quarter
offseting a doubling in revenue from printers and printed parts.
Excluding items, the company earned 20 cents per share.
Revenue jumped 45 percent to $120.8 million.
Analysts on average had expected earnings of 24 cents per
share on revenue of $114.5 million, according to Thomson Reuters
Rock Hill, South Carolina-based 3D Systems' shares down 7.3
percent at $46.77 in midday trading on the New York Stock
Exchange. The shares have more than doubled in the last year.
Shares of rivals Stratasys Ltd and ExOne Co
were also down.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by