Seeking Alpha

3D Systems Corp. (DDD)

  • May. 27, 2014, 4:20 PM
    • 3D Systems' (DDD) stock offering stands to increase the company's share count by 5.8%. At current levels, it would yield gross proceeds of $327M.  Underwriters have an 892.5K-share overallotment option.
    • The M&A-hungry company names "future acquisitions" as one of its planned uses for the proceeds.
    • 3D carried out a 7.5M-share stock offering (6.2M new shares) last year. The company ended Q1 with $306.7M in cash, and $18.9M in debt.
  • May. 22, 2014, 11:53 AM
    • 3D Systems (DDD +6.1%) and Stratasys (SSYS +5.1%), both hit hard by the March-May momentum stock rout, are posting big gains on a day the Nasdaq is only up 0.5%. Beaten-down ExOne (XONE +6.8%) and Voxeljet (VJET +3.1%) are also rallying.
    • Stratasys could be benefiting from a BB&T note praising MakerBot's potential. Last month, UBS cited MakerBot's strong position in the consumer/enthusiast 3D printer segment as a reason for being positive on Stratasys.
    • Voxeljet closed yesterday near its 52-week low of $12.85. Likewise, ExOne wasn't too far removed from its 52-week low of $24.34. Shares had been trading close to the low since ExOne posted a Q1 miss last week.
  • May. 14, 2014, 7:27 PM
    • Good news for 3D printer vendors: (DDD, SSYS, VJET, XONE): CAD software giant Autodesk (ADSK) plans to launch Spark, an open-source software platform it hopes will lower software costs (both 3rd-party licensing and in-house R&D) for printer makers, and also improve/ease the design process for users.
    • Bad news: To show off Spark, Autodesk plans to make a reference printer whose design "will be made publicly available to allow for further development and experimentation." CEO Carl Bass calls the printer "a midmarket industrial machine," and notes similar hardware typically costs ~$5K.
    • Autodesk's printer will rely on stereolithography (SLA), a printing process  less frequently used than fused deposition modeling (FDM) in mass-market printers, but which is gaining steam thanks to speed/reliability benefits and patent expirations. The company promises a wide range of materials will be supported.
    • Autodesk, which reports tomorrow, is undoubtedly hoping to drive further usage of its CAD software, already used in plenty of 3D printing projects. Its efforts could have implications for software vendor Materialise (recently filed for an IPO).
    • Earlier: ExOne -12.8% AH on Q1 miss, margin pressure
  • May. 9, 2014, 8:20 AM
    • Stratasys (SSYS) is reiterating guidance for 2014 revenue of $660M-$680M ($674.8M consensus) and EPS of $2.15-$2.25 ($2.21 consensus). Organic growth (excludes MakerBot) is still expected to total 25%.
    • Q1 EPS was only in-line (in spite of a $7.9M revenue beat) thanks in large part to Stratasys' aggressive spending: SG&A spend +56% Y/Y to $67.6M, R&D spend +56% to $16.8M. Gross margin rose 70 bps Q/Q and 190 bps Y/Y to 60.9%.
    • Product revenue +58% Y/Y to $129.3M, services revenue +41% to $21.7M. MakerBot, acquired in mid-2013, saw revenue grow 79% Y/Y to $20.6M.
    • Rival 3D Systems (DDD) is following Stratasys lower. The shoe was on the other foot last month.
    • Q1 results, PR
    | Comment!
  • Apr. 30, 2014, 10:02 AM
    • Down 10.5% yesterday after reporting a gross margin decline with its Q1 results, 3D Systems (DDD +3.3%) is recovering some of its losses with the help of an upgrade to Buy from Gabelli, and a bullish coverage launch from Imperial Capital.
    • The gains come even though Citi, RBC, and Canaccord have slashed their PTs. Sell-side ratings for 3D remain largely bullish.
    • The company was questioned on its CC (transcript) about slowing U.S. growth (+19% Y/Y in Q1 vs. 66% for Europe and 97% for Asia-Pac). CEO Avi Reichental insisted 3D isn't seeing a U.S. market slowdown. He also predicted gross margin will rebound due to rising materials sales and improving services margins.
    • Shares currently go for 39x 2015E EPS, and 5.3x 2015E sales.
  • Apr. 29, 2014, 9:12 AM
  • Apr. 29, 2014, 8:39 AM
    • 3D Systems (DDD) is reiterating full-year guidance for revenue of $680M-$720M and EPS of $0.73-$0.85; the consensus is at $701.1M and $163.2M.
    • Gross margin (a concern as of late) fell 60 bps Q/Q and 130 bps Y/Y in Q1 to 51.5%; 3D attributes the decline to a larger printer mix. As promised, 3D is ramping its internal investments: SG&A spend rose 65% to $48.7M, and R&D spend 164% to $17.3M.
    • Product revenue (inc. printers) rose 53% Y/Y to $60.8M after growing 76% in Q4. Print materials grew 41% (to $40.4M) vs. 39% in Q4, and services 38% (to $46.6M) vs. 33%.
    • Design/manufacturing printer sales rose 76% Y/Y (mix shift towards cheaper printers?), and quarter-ending backlog totaled $28.8M. Consumer revenue rose 150% to $9.7M (6.5% of total revenue).
    • Rival Stratasys (SSYS), which reports on May 9, is joining 3D Systems in trading lower.
    • Q1 results, PR
    | 1 Comment
  • Apr. 29, 2014, 8:01 AM
    • 3D Systems (DDD): Q1 EPS of $0.15 misses by $0.01.
    • Revenue of $147.8M (+44.8% Y/Y) beats by $2.3M.
    • Press Release
  • Apr. 28, 2014, 5:30 PM
  • Apr. 16, 2014, 9:35 AM
    • 3D Systems (DDD) is acquiring Robtec, a Sao Paulo-based firm declared to be the largest additive manufacturing service bureau and 3D printer/scanner distributor in Latin America.
    • 3D will initially buy 70% of Robtec, and the remainder of its shares in 5 years. The deal's price tag is undisclosed; 3D says it will be accretive to EPS within 12 months of closing.
    • Robtec, which operates in Brazil, Mexico, Argentina, Chile, and Uruguay, will support 3D's Quickparts custom manufacturing/prototyping service. 3D has already acquired a string of service bureaus over the last couple of years. Services accounted for 28% of the company's Q4 revenue.
  • Apr. 14, 2014, 9:52 AM
    • Stratasys (SSYS +1.5%) has been started at Buy by Goldman, and 3D Systems (DDD -3.1%) at Neutral. Shares of both companies (like those of many high-beta tech names) were clobbered last week. UBS issued similar opinions for Stratasys and 3D Systems two weeks ago.
    • VMware (VMW +1.3%) has received a two-notch upgrade to Outperform from CLSA ahead of its April 22 Q1 report.
    • F5 (FFIV +4.1%) has been upgraded to Buy by Stifel. Q1 results arrive on April 23.
    • Palo Alto Networks (PANW +1.2%) has been upgraded to Overweight by both Barclays and Stephens.
    • TTM Technologies (TTMI +3.1%) has been upgraded to Buy by Stifel and UBS.
    • CalAmp (CAMP +1.7%) has been upgraded to Buy by B. Riley.
    • STMicroelectronics (STM -2.3%) has been cut to Sell by UBS. Q1 results arrive on April 29.
    • AudioCodes (AUDC +4.1%) has been started at Buy by Needham. Shares rose last week after the Israeli government approved an R&D program involving the company.
    • ChannelAdvisor (ECOM +1.2%) has been started at Buy by Janney.
    • Paylocity (PCTY +1.4%) has received five bullish ratings and one neutral rating on underwriter coverage day. Q2 (QTWO +3.1%) has received six bullish ratings.
    | Comment!
  • Apr. 11, 2014, 11:34 AM
    • 3D Systems' (DDD +2.1%) Japanese reseller deal with Canon, which already covers most of the company's professional 3D printers, has been expanded to include 3D's entire ProJet professional printer line, its CubeX consumer/enthusiast-focused desktop printers and its Geomagic 3D object design/scanning software.
    • Shares are trading higher after falling over 10% yesterday in a brutal momentum stock rout. Peer Voxeljet isn't so lucky.
  • Apr. 10, 2014, 4:01 PM
    • Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
    • Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
    • Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
    • Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
    • Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
    • 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
  • Apr. 7, 2014, 1:00 PM
    • Punished less than high-beta Internet and enterprise software stocks last week, 3D printing firms are among today's biggest tech decliners as a take-no-prisoners selloff in momentum stocks continues. DDD -6%. SSYS -6.2%. XONE -7.3%. VJET -4.8%. CIMT -4.6%. CAMT -3.6%.
    • Printer makers are now off sharply from their 52-week highs: 3D Systems -46%, Stratasys -26%, ExOne -60%, Voxeljet -66%.
  • Apr. 3, 2014, 1:46 PM
    • Materialise (MTLS), a Belgian provider of 3D printing software and manufacturing services, has filed for a $125M IPO. No symbol has been given yet. The underwriters: Piper, Credit Suisse, BB&T Capital, Janney, Stephens, and KBC Securities.
    • Materialise's software handles data preparation/process planning for 3D printing projects, thereby interacting with both CAD software from the likes of Autodesk, and 3D printers from the likes of 3D Systems, ExOne, and Stratasys. Ford, Boeing, Airbus, and Toyota are among its 8K+ licensees.
    • The company uses 98 3D printers to provide rapid prototyping/additive manufacturing services. It also makes custom parts for automakers, and provides 3D medical imaging software and related clinical services.
    • The company has a complicated relationship with 3D Systems (DDD -2%) and Stratasys (SSYS +2.5%): Both 3D and Stratasys are among Materialise's software licensees, but they also compete with its services arm - Stratasys just bought two services firms - and are moving aggressively to expand their own software lineups. There has been speculation 3D might try to buy Materialise.
    • Materialise had 2013 revenue of $94.7M (+16% Y/Y), net income of $4.7M, and a gross margin of 60.5%.
    • Prospectus
  • Apr. 1, 2014, 12:46 PM
    • UBS' Steve Milunovich has launched coverage on Stratasys (SSYS +3.9%) with a Buy and $125 PT, and rival 3D Systems (DDD +0.4%) with a Neutral and $62 PT.
    • Milunovich prefers Stratasys on account of "better execution, a narrower focus, and immediate upside potential from MakerBot." He sees MakerBot, which accounted for 16% of Stratasys' Q4 sales, growing 70% this year.
    • At the same time, Milunovich likes 3D Systems' broad product line, M&A efforts (not everyone is a fan), and metal printing exposure. He's also upbeat about its long-term ability to grow aerospace, healthcare, and automotive sales.
    • Citron Research and Credit Suisse argued Stratasys is a better investment than 3D Systems in January.
Visit Seeking Alpha's
DDD vs. ETF Alternatives
Company Description
3D Systems Corp through its subsidiaries is engaged in providing 3D printing centric solutions, including 3D printers, print materials and cloud sourced custom parts.
Sector: Technology
Country: United States