Shares of 3D Systems Corp. (NYSE: DDD) slumped 7.7% after the company reported a first-quarter loss of 9 cents per share, wider than the street projection of 1 cent per share. The top line declined 8% to $152 million, hurt by demand weakness. Analysts were expecting revenues of $166.16 million.
The company reported 90% higher printer unit sales, but as a result of the mix of unit sales, printer revenue decreased 29% year-over-year.
3D Systems has been witnessing a steady deceleration in top-line growth, which has also started affecting its stock.
On a reported basis, net loss widened to 22 cents per share in Q1 from 19 cents per share a year earlier.
CEO Vyomesh Joshi said, “While we expected seasonality in our revenue this year from ordering patterns of enterprise customers, the first quarter was lower than anticipated as a result of shipment timing and additional on-demand weakness.”
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DDD shares have been almost flattish so far this year, gaining a modest 2%. During the same period, Israel-based rival Stratasys Ltd (NASDAQ: SSYS) has recorded a growth of 26%.
There are multiple product launches in the cards this year and going forward, the focus will be on investments in material innovations and software growth opportunities. Also, the cost-cutting program will continue in the coming months, with the goal of better cash generation.
On Friday, Stratasys reported quarterly adjusted earnings that doubled, helped by its cost control measures. Revenues edged up 1% to $155.3 million.