Contact: Scott Denne
An updated and reduced earnings outlook from 3D Systems suggests the 3-D printing market is developing slower than anticipated, which could slow the recent streak of acquisitions in the space.
Due in part to higher-than-expected costs for its acquisitions and less consumer demand for its products, earnings will be about 13% lower in 2013 than the guidance it gave last quarter. The company says its bets on marketing, product development and acquisitions haven’t produced results as quickly as anticipated. It now expects revenue to be $513m-514m, just a hair below the midpoint of its earlier forecast.
As the most active acquirer in the space, any new caution from 3D Systems will slow 3-D printing deal flow. Since the start of its recent spree in 2011, 3D Systems has acquired 18 companies, including seven in the last 12 months. It’s not the only reason deals are up in 3-D printing: Overall, there have been 24 acquisitions in that time (including more than $1bn in spending from 3D Systems’ competitor Stratasys), and none in the nine years prior, according to analysis of the 451 M&A KnowledgeBase.
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