As of late, 3D Systems Corporation (NYSE:DDD) has been struggling to maintain its stock. From operating expenses to abysmal revenues, there are a number of reasons behind this struggle, and here’s a quick look at them.
3D Systems has seen a 30.5% loss in its stock, while the rest of the industry has grown by 9%. This has led to many questions regarding what’s been going on at the company.
During its third quarter, there have been several legacy issues challenging the company. 3D Systems has claimed that it can no longer accurately predict earnings and sales numbers, which has caused several investors to become nervous.
There were also several market conditions throughout the third quarter that negatively affected capital investment cycles and caused much of the demand to decline. The company did not perform well in the Americas or in the Asia Pacific, both sites seeing struggling revenues.
Furthermore, the high research and development, along with the acquisition costs have been severely hurting the company, and the expenses are only expected to increase. There were also legal expenses during the third quarter.
Overall, there have been many factors negatively affecting the financial outcomes for the company. These include economic slowdown, currency fluctuations, inflation, credit availability, and commodity prices. Add to that the alterations in user and customer requirements/preferences and the rapid technological changes, and it begins to become as little wonder that 3D Systems has been struggling so much.
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