Shares Of 3D Systems Modestly Lower Despite Mixed Q1, Withdrawn Outlook

Shares of

were trading lower by one percent during Wednesday's pre-market trading session after the company reported its first quarter results and withdrew its full year outlook. 3D Systems earned $0.05 in the first quarter, a penny better than analysts expected while revenue of $160.722 million fell short of the $161.78 million analysts expected. The company noted that negative currency headwinds and demand weakness resulted in lower than expected purchases of its products from clients in aerospace, automotive and healthcare segments. Despite falling short of estimates, sales for the quarter rose nine percent from the same quarter a year ago and 17 percent higher on a currency constant basis. Direct metals printers revenue rose 39 percent on a 46 percent increase in units sold, Healthcare revenue rose 38 percent despite delayed purchases of 3D printers, consumer revenue grew 65 percent on a 169 percent increase in consumer printers sold and services revenue rose 31 percent. "We were surprised and disappointed by the abrupt interruption in customer demand late in the quarter from several economic factors that we believe caused many of our customers to defer their planned investments," said Avi Reichental, President and Chief Executive Officer, 3D Systems. "However, we believe the fundamentals of our business model and the strength of our portfolio are intact, and we are encouraged to see certain OEMs resuming purchasing activities they deferred during the first quarter." 3D Systems also noted that its focus has shifted to "fine-tuning and leveraging" its portfolio of products and services in 3D digital fabrication. Construction of its new 70,000 square foot healthcare facility continued duringthe quarter while the company completed the installation and startup of its continuous, high-speed 3D printer in its Wilsonville, OR facility.

3D Systems continued that given "marketplace uncertainties," the company believes it is "prudent" to withdraw previously issued annual guidance for 2015. "While the current economic climate interfered with our planned cadence for 2015, we believe that the fundamentals of our business and the strength of our portfolio are intact. We remain optimistic about the market opportunities ahead and are fast tracking our planned integration, productivity and efficiency measures without impairing future growth," concluded Reichental.