3D Systems Declares Underwritten Public Offering - Analyst Blog

3D Systems Corp. DDD has announced an underwritten public offering of 5,950,000 shares of its common stock to enhance its liquidity. Canaccord Genuity will be the underwriter of the offering. Further, the company has allowed a 30-day window to the underwriter for the additional purchase of up to 892,500 shares of common stock.

The leading 3D printing manufacturer plans to use the net proceeds from this offering primarily to fund future acquisitions, to provide for its working capital, as well as for corporate purposes.

3D Systems has been executing strategic acquisitions to diversify its offerings and expand its operating markets. The company expects its portfolio of new and innovative products to lead to more than 30% organic growth in the next couple of years, thereby enhancing its margins and earnings.

Given the rapid adoption of 3D printing technology across various industries, technology and solutions are witnessing high demand from broad-end users. The rising demand for 3D printing technology also backs IDC research firm's prediction of 3D printing revenue and unit growth at a CAGR of 29% and 59%, respectively, in the 2012–2017 period.

A month back, 3D Systems reported strong first-quarter 2014 results with revenues up 45% year over year. This was primarily driven by a 76% rise in the demand for design and manufacturing printers. Moreover, the continuous placement of advanced 3D printers boosted the growth rate of materials to 41% in the quarter.

Further, sales in the 3D printers and other products category also grew 53% while print materials revenues grew 41%. Also, service revenues improved 38%, while healthcare and consumer solutions recorded revenue growth of 53% and 150%, respectively.

3D Systems is a leading provider of 3D printing centric design-to-manufacturing solutions. Its comprehensive range of 3D printers are the industry's benchmark for production-grade manufacturing in the aerospace and automotive sectors, patient-specific medical devices and a variety of consumer, electronic and fashion accessories.

3D Systems currently carry a Zacks Rank #3 (Hold). A few better-ranked companies in the sector include Logitech International SA LOGI, Mercury Systems Inc. MRCY and Voxeljet AG VJET. While Logitech and Mercury sport a Zacks Rank #1 (Strong Buy), Voxeljet has a Zacks Rank #2 (Buy).