3D Systems Corp. (NYSE: DDD) reported second-quarter 2014 results before markets opened Thursday morning. The 3D printer maker posted adjusted diluted earnings per share (EPS) of $0.16 and $151.5 million in revenues. In the same period a year ago, 3D Systems reported EPS of $0.20 on revenue of $120.79 million. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.18 and $162.28 million in revenue.

3D Systems now expects full-year revenue of $700 million to $740 million and EPS of $0.73 to $0.85. The consensus estimates had called for EPS of $0.81 and revenues of $713.82 million. The midpoint of the company’s EPS range is now below the consensus estimate.

The company’s CEO said:

While transitional forces temporarily pressured our gross profit margin, a detailed examination of the specific drivers, confirms that the fundamentals of our business are intact and our gross profit margins are poised to rebound and resume their expansion trajectory. As we advance our market leadership and scale in key verticals through our increased investments, our progress is ahead of schedule and our enterprise-wide synergies are already generating substantial cash from operations. … Consistent with our historical performance, we expect to generate a higher portion of our revenue during the second half on rebounding margins. Record bookings for our design and manufacturing printers together with rising orders for our consumer products provides us with confidence in our ability to achieve our 2014 guidance.

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Gross margins fell four points to 47.8% as it “shouldered the transitional effects of concentrated new product launches as well as the absorption of legacy products obsolescence and manufacturing expansion costs.”

3D Systems issued nearly 6 million new shares in May and could do no better than meet expectations in its first fiscal quarter. Combined with the clear miss on both revenues and earnings, the stock will get hammered down in Thursday’s session.

After the markets closed Wednesday night, 3D Systems said it would acquire 3D virtual reality company Simbionix for $120 million in cash. 3D Systems expects the acquisition to be immediately accretive to cash flow and adjusted EPS.

Shares of 3D Systems were down more than 11% Thursday morning, at $49.81 in a 52-week range of $43.35 to $97.28. Thomson Reuters had a consensus analyst price target of around $66.10 before the results were announced.

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