3D Systems Corporation (NYSE:DDD)’s aggressive acquisition strategy is considered by many to be a bearish argument against the company. Over the past three years, the company has made 50 acquisitions, fueling concerns that the integration of the companies might create a problem. Not so smooth integration may hamper the operations, and could possibly lead to a write-down of the large amount of goodwill on the balance sheet, says a report from Motley Fool by Rex Moore.

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3D Systems CEO optimistic

Apart from the difficulty in integrating the acquired companies, it is believed that the acquisitions have not added much to the earnings of 3D Systems Corporation (NYSE:DDD). For the last quarter, earnings for the company increased by just 3% year over year. Also, the company is now looking to invest in R&D, which further highlights the fact that the acquisitions are not contributing much.

Despite the doubts on the acquisition model, CEO and president Avi Reichental looks optimistic. The CEO told analyst Rex Moore that 3D Systems Corporation (NYSE:DDD), and the industry as a whole will witness more consolidation in times to come. Referring to some of the products that the company has recently launched, Avi suggested that they are the evidence that the strategy is working.

HP may prove a threat

3D printing is one of the fastest growing industries, and is attracting many players. By the end of the decade, the 3D printing industry is expected to be worth over $6.5 billion compared to just $1.7 billion in 2011. Among the many new players making plans for the industry, one such company that could be a threat to 3D Systems is Hewlett-Packard Company (NYSE:HPQ).

Considering the size of HP, it would be relatively easier for the PC maker to make a mark on the industry. HP, whose R&D expenses amount to $800 million, could come up with its own 3D printers that will be more affordable along with providing better speed.

Recently, Hewlett-Packard Company (NYSE:HPQ) CEO Meg Whitman announced that the company will come out with a 3D printing plan in June this year. HP executives expect the sale of 3D printers and related software and services to amount $11 billion by 2021 versus just $2.2 billion in 2012.