3D Systems Corp.
) 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
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
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%,
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
Mercury Systems Inc
). While Logitech and Mercury sport a Zacks Rank #1 (Strong Buy),
Voxeljet has a Zacks Rank #2 (Buy).
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3D SYSTEMS CORP (DDD): Free Stock Analysis
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