The company’s income has plunged 86% from a year earlier. The pressure to its bottom line came from substantial investments in research and development and acquisitions that the company has made in the last three quarters of the previous year.
“As expected, higher spending levels in support of our expansion plans pressured our earnings throughout 2014,” said the company’s CEO Avi Reichental. “We are in the early innings of mainstreaming adoption for our products and services and believe that the effective and disciplined investments we have made over the past 15 months position us extremely well for the open-ended opportunities in front of us.”
The slight raise in revenue that the company has been registering was mainly due to the spending done on markets like Europe, the Middle East and Africa. Unfortunately, the currency variations in these regions made the real profit diminish by a fair few percents. At the end of the day, the real earnings came in at 21 cents per share.
Looking forward to the near future, the company is thinking about readjusting the profit estimates for this year also, due to the delays that they might have in the launch of their new products.
In the first half of the last year, 3D Systems expected revenue to be fairly impacted by currency and by the discontinuing pace that is marking the sales for their newly launched products and applications. For this reasons, the company is trying to make an effort and start working to improve its operations in North America. This could mean bringing a new solution to the delays they encountered in new products’ launches and to the gaps in channel performance that are slowing down their distribution.
The market for the products that are just starting to get world recognition is indeed developing at a slow pace. One of the main reasons could be the high prices that these product manufacturers are putting out. Until patents will start expiring on these new applied inventions, we can expect many rises and falls of great companies and new start-ups alike.