3D Systems slips; BofA/Merrill worried about printer mix


After looking at 3D Systems' (DDD -1.2%) 2013 10-K, BofA/Merrill thinks the company's printer mix is shifting towards cheaper systems that tend to have lower materials attach rates.

3D states in its 10-K price/mix had a $397.7M impact on printer and other products revenue in 2013, up from just $109.1M in 2012, and that the "trend toward smaller, lower-priced printers has continued." At the same time, volume growth had a positive $498.9M impact.

The company's big Q4/2014 warning was partly attributed to gross margin pressure resulting from an unfavorable mix.

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Comments (6)
  • Esekla
    , contributor
    Comments (4479) | Send Message
     
    I've been warning all along that the cheaper "prosumer" segment where 3D Systems has its roots is not where this technology will really change society:

     

    http://seekingalpha.co...
    12 Mar 2014, 10:31 AM Reply Like
  • 3D Printing Investor
    , contributor
    Comments (525) | Send Message
     
    Barron's published this weekend that 3D printing software companies that have an established revenue mix beyond 3D printing are the safest buys in 3D printing right now. I agree.

     

    Cimatron (CIMT) has a trailing PE of 16 and is entering 3D printing software sales this year. More at http://bit.ly/1i6boD3
    12 Mar 2014, 11:38 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    Software - not printing. That moat (patents) is not impressive really. Also, in all your comments you seem to have only one thing in mind - pumping $CIMT.
    12 Mar 2014, 11:50 AM Reply Like
  • GaryStoltz
    , contributor
    Comments (28) | Send Message
     
    Which company is in the best position as of now?
    12 Mar 2014, 01:31 PM Reply Like
  • etienne79
    , contributor
    Comments (60) | Send Message
     
    This is a one million dollar question, in a sector that became way too hot. I'm personally betting on SGLB, considering the .12-.13 range a good point to add more. I'm screening and waiting a little more time before re-entering on Arcam AB.
    12 Mar 2014, 02:47 PM Reply Like
  • J Michael McKay
    , contributor
    Comments (30) | Send Message
     
    I am still thinking that the market is young and maturing. DDD is a staple for 3d printing whose strategy has always been around educating the consumer base which in my mind is the user of parts and products that makers will make. DDD also has financed educating youth to ensure there are makers and designers to fill 3ds potential and growing acceptance and demand. I would just ask yourselves some of the broader questions out there. DDD has been invested in providing answers by involving the future maker and their customers. Each stakeholder will have to buy for their own needs. I look forward to the digital file library companies that will distribute the keys / licensing to each 3d print stakeholder, providing single use digital licensing for replacement parts for end users and multi-licensing for printing many of the parts for say an online hardware store.

     

    You might envision a Sears maker community or business that specializes in providing digital files for anything Sears. Or parts specialists for their Kenworth line only.

     

    I am convinced SA is where the self motivated mask the potential of technology to make a little green.
    12 Mar 2014, 05:32 PM Reply Like
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