3D Systems profit misses estimates as costs jump
(Reuters) - 3D Systems Corp's quarterly profit missed analysts' expectation as higher costs ate into the three-dimensional printer maker's profit margins.
The company's shares slipped as much as 14 percent in heavy morning trading, to be one of the top percentage losers on the New York Stock Exchange.
3D Systems' operating costs jumped by more than a half to $68 million (£40.27 million) in the second quarter ended June 30.
Gross margins shrunk 4 percentage point to 47.8 percent as the company moved onto newer products and increased manufacturing capacity, 3D Systems said on Thursday.
Net income attributable to the company fell to $2.1 million, or 2 cents per share, from $9.3 million, or 10 cents per share, a year earlier.
Excluding items, the company earned 16 cents per share.
Revenue increased to $151.5 million from $120.8 million.
Analysts on average had expected a profit of 18 cents per share on revenue of $162.3 million, according to Thomson Reuters I/B/E/S.
3D Systems said it now expects 2014 revenue of $700 million-$740 million, up from $695 million to $735 million.
Analysts on average were expecting a profit of 81 cents per share on revenue of $713.8 million.
3D Systems shares were down 9.4 percent at 50.90, after falling to $48.26. Nearly 900,000 shares had changed hands in an hour's trading, more than double their 10-day average volume.
(Reporting By Subrat Patnaik; Editing by Joyjeet Das)
