Boston, MA 02/07/2014 (wallstreetpr) – Recently, 3D Systems Corporation (NYSE:DDD) is on record for having issued a warning regarding its profits. What DDD did is not something that is strange for publicly quoted companies. Such acts are too common across a wide range of companies. The reason that the warning issued by DDD has caused such high levels of excitement is because of the 3D printer bubble, which is still fresh in the minds of most people in this industry. DDD has said that it expects to make profits, but not to the high levels that it had at first issued for 2013 fiscal year.
The fear that the warning from 3D Systems Corporation (NYSE:DDD) has created, is not entirely attributable to this company in isolation. It is a fear that has been prevalent within the 3D printing industry for quite some time. Until now, not many people have shown a high level of confidence on the future prospects and viability of the 3D printing industry and from the reaction that the warning by DDD has solicited, the fear is quite justified. Although the industry enjoys a high presence of investors, most of them remain unsure about its prospects and if it will bring the ROIs, which they need.
The reason behind the huge amount of apprehension exhibited by investors in the 3D printing industry after 3D Systems Corporation (NYSE:DDD) made its announcements is based on the fact that this is the largest company here. You will not get a larger company in the 3D printing industry than DDD. The thinking behind this reaction is that if the largest company in the industry will not make profits as expected, then perhaps it is true that the huge interest and buzz regarding 3D printing is nothing more than a bubble, which could burst any time soon, before investors reap their rewards fully.
The 3D printing industry has been around for years, although the technology has only been favored among manufacturers. On the other hand, in the recent years, 3D Systems Corporation (NYSE:DDD) has been devising ways of adapting the technology to make it suitable and popular with individual consumers and users as well. The reason behind the company’s decision to cut down its projections in terms of profits for the fourth quarter of 2013, which it believes will continue into 2014, is that it spent a large chunk of its financial resources on research, marketing campaigns, and manufacturing.
3D Systems Corporation (NYSE:DDD) said that it had not seen the high level of demand for its 3D printers as it hoped. It lays the blame for this on the fact that consumer demand for its 3D printers is much lower than what it anticipated. On the other hand, the company says that the professional demand for its 3D printers is still quite good and as strong as what it expected. When DDD announced that it was willing to tolerate the drop profits, the market reacted negatively to this piece of news. DDD expects its revenue to double in the next two years, and it believes this will be due to a 30% organic growth.
