The wave of the future in printing is leaning towards the direction of three dimensional printing. Major manufacturers of 3D printers are enjoying the ride up. Leading companies like 3D Systems (DDD) and Stratasys (SSYS) have been upbeat since the start of 2012. They have been profitable, as well. Both 3D Systems and Stratasys show solid financials. They consistently beat estimates quarter over quarter for the past 2 years. We know that 3D printing, actually, has been around since the early seventies. But the companies recently gained rising popularity. 3D printing used to be available only in automotive designs, aerospace, and in several medical settings. But now it gradually invades other industries like construction, engineering, and jewelry, among others. Soon, it may invade the education and the business sectors. Many believe that schools and offices will start using 3D printers in the near future.
Presently, 3D printing has already penetrated the toy manufacturing industry. In fact, in London there are stores selling dolls manufactured using 3D printing technology. Soon, more toys will be made using the same technology amid the declining prices of 3D printers. 3d Printing Ventures is a matchmaking website that puts investors in touch with firms needing capital. The sanguine future of 3D printing got a boost when it was especially highlighted in the speech of US president Barrack Obama. 3D printing was mentioned as a technology that could possibly fuel more high-tech jobs for the unemployed Americans.
About 3D Systems
Year over year, 3D Systems reported increasing total revenue. The fiscal year 2011 ended with $230 million revenue, up by 43% from $160 million in 2010. In 2012, growth in total revenue was higher at 54% when it posted revenue of $354 million.
The net income, on the other hand, also experienced the same steady growth year-over-year. In 2010, net income was posted at $19.5 million. The following year, it saw 81% growth in net income at $35.4 million. However, a slower growth was seen in 2012 at 10% when the company posted net income of $38 million. Nonetheless, 3D systems still showed a good performance with growth in both the total revenue and the net income. In the balance sheet, 3D Systems lowered its debt exposure. The total liabilities were minimized from $208 million in 2011 to $197 million in 2012. The company’s cash and cash equivalent, on the other hand, is $155 million. The company is worth approximately $8 billion on the stock exchange.
3D system’s financial performance for 2012 is generally better than its closest peer, Stratasys. But in terms of revenues, Stratasys has robust revenue growth compared to 3D systems. It gained 38% from $156 million in 2011 to $215 million in 2012. But unlike DDD, its net income declined from $20.6 million to $8.5 million with growth of -58%.
As you can see, there is much activity and volatility in the 3D Printing Industry.