Tag Archives: Bespoke Innovations
3D Systems: Will the 3D Printing Giant Continue to Thrive?
What is next for the $5 billion 3D printing company?
In a critical analysis published in the Wall Street Journal, Rolfe Winkler wrote, ”[3D Systems'] valuation and the insider selling are potentially worrisome signs that 3D hype may be outpacing reality.”
Winkler has a number of concerns, from adoption of consumer 3D printing to distribution risks to weak materials sales.
Let’s take a deeper look at how far this 3D printing giant has come.
Since May 2011, when the company transferred from the NASDAQ to the NYSE, its stock price has grown nearly 300%. Their stock is riding near its all-time high, shown in the chart below.
Expanding Revenue and Building a Consumer Business
The company expects to generate around $500 million of revenue this year, with the majority of sales in the industrial sector. But it has also expanded aggressively into the consumer business with the Cube and CubeX 3D printers, and expects prices of desktop 3D printers to come down from $1300 to below $500 over time.
3D Systems recently presented a full business update at the Citi 2013 Global Technology Conference; you can read the full transcript at Seeking Alpha.
The company has acquired 37 companies since 2009 and continues to look at M&A as a way to fill in the gaps of their business. Here are some key acquisitions:
- Bespoke Innovations in May 2012 for 3D printed personalized prosthetics
- FreshFiber in May 2012 for 3D printed electronics accessories
- My Robot Nation in April 2012 for creative solutions to support 3D printing community Cubify for kids and adults
- Paramount Industries in April 2012 to advance aerospace and medical device 3D printing
But the company missed their chance to acquire MakerBot, the leader in desktop 3D printing. MakerBot was acquired by Stratasys, 3D Systems’ competitor, for $403 million earlier this year.
Challenges and Opportunities Ahead
3D Systems has had its share of success. In fact, it was recently ranked #5 of the Fortune Magazine’s top 100 fastest growing companies. But will that success continue and what are it’s challenges?
Can the Cube 3D printer series beat out the Stratasys-MakerBot partnership? Can 3D Systems maintain its industrial 3D printer sales growth and continue to optimize its supply-chain and reseller network? Will its entry into the consumer market distract from its larger industrial business?
Perhaps only time will tell. With $350 million on the balance sheet and a $5 billion market cap, 3D Systems seems poised to be competitive as the 3D printing industry continues to accelerate.
3D Systems Issues New Common Stock; Watch Out for M&A
3D Systems Stock Issue Hints at New M&A Activity
3D Systems Corporation (NYSE:DDD) today announced that, at its annual meeting held today, its stockholders approved an amendment to its Certificate of Incorporation to increase the authorized number of shares of Common Stock from 120,000,000 to 220,000,000.
“We are grateful to our stockholders for their support,” said Avi Reichental, President and Chief Executive Officer, 3D Systems. “This increase in our authorized shares restores our flexibility to use newly issued shares of our common stock for appropriate corporate purposes.”
What could those corporate purposes be? Likely more M&A. Last year, 3D Systems acquired a number of companies, including:
- Bespoke Innovations in May 2012 for 3D printed personalized prosthetics
- FreshFiber in May 2012 for 3D printed electronics accessories
- My Robot Nation in April 2012 for creative solutions to support 3D printing community Cubify for kids and adults
- Paramount Industries in April 2012 to advance aerospace and medical device 3D printing
3D Printing Future is Bright, Say Industry Leaders on SXSW Panel
The 3D printing future is bright. That was the consensus of industry leaders on a panel at SXSW this year in Austin, Texas. The show kicked off with MakerBot’s Bre Pettis unveiling the new MakerBot Digitizer 3D scanner and closed with 3D printed toys producer MakieLab winning the SXSW Accelerator top prize.
CNET’s Rich Brown hosted a panel on “The Future of 3D Printing“, featuring 3D Systems CEO Avi Reichental, MakieLab CEO Alice Taylor, and Bespoke Innovations founder Scott Summit.
The panel discussed three topics:
- Business opportunities
- IP and copyright issues
- General thoughts about the industry
Key takeaways
Reichental discussed how 3D printing is already powering major industries. He noted that hearing aids are manufactured using 3D printing, many dental implants are 3D printed, and parts used in military jets and drones are created using 3D printing as well. 3D Systems has a partnership from the military to increase the number of 3D printed parts to 900 for the next generation jet.
While 3D Systems is a large public company, Taylor and Summit represented their experience in their respective startups. 3D printing enabled them to get manufacturing intensive businesses to market without incurring dramatic capital expenses. The things that kill startups – time to market, upfront costs, and inventory costs – go away with 3D printing.
Intellectual property concerns were somewhat dismissed by the panel, suggesting that piracy is simply a demonstration of market demand and loyalty. Summit argued that a larger risk for piracy is the counterfeit mass production of goods in China.
Likewise, the hype around 3D printed guns was suggested to be overplayed by the media and not a real risk. Taylor suggested it will continue to be easier to buy a gun than print one.
Looking to the future, the panelists commented on 4D printing (3D printing with functionality) and 5D printing (voxel manufacturing) as revolutionary directions the technology could go, while also acknowledging that there are real limitations with respect to materials and cost today.
The panel also suggested that prices of consumer 3D printers would fall as competition increased.
Tweets
Wow, deep “we lost a generation to video games, buy your kids a 3D printer and they’ll become a rocket scientist by college” #ftr3dprint
— Jake Frick (@JakeFrick) March 11, 2013
We won’t continue to see few design for millions. With 3D printing, we’ll start to see millions designing for themselves. #FTR3DPRINT #SXSW
— Sarah Schultz (@schultzse) March 11, 2013
Original panel description from SXSW
No longer is it necessary to create a mold and make 10,000 of an item in order to get it produced. Today, 3D printing allows almost anyone to create just about design they can imagine. The technology is being used to make everything from toys to motorcycles to airplane parts, and even houses, as well as incredible medical advances . Where is the tech going? Some think it can make new parts for the International Space Station. Others see it as a way for designers to make money selling 3D models.
What’s clear is that production will never be the same. The question is whether the technology behind creating 3D printed products can really be democratic, or if truly high-end production will remain in the hands of a skilled — and monied — few.
Experts in the field will share their thoughts on the state of the art, and where this exciting tech is likely to go in the years to come. CNET Reviews editor Rich Brown, who has been writing about 3D printing for years, will moderate.
Photo by William Hertling.
Video: Current and Future 3D Printing at Singularity University
In the video below, Scott Summit, co-founder of Bespoke Innovations, explains the current state and future potential of 3D printing. He talks about architecture, jewelry, medical, and biological applications, among other topics. He also discusses business models of existing 3D printing players, such as Shapeways and Freedom of Creation. The video was recorded at Singularity University.
3D Systems to Raise $100 Million in Common Stock for Acquisitions
3D printer manufacturer 3D Systems (NYSE:DDD) announced that it will raise $100 million by selling common stock.
[The company] intends to use the net proceeds from the offering to finance future acquisitions of other entities or their assets and for working capital and general corporate purposes.
The market did not respond well to this announcement, and shares dropped 6% in after hours trading. Their market capitalization this morning is $1.57 billion.
3D Systems has recently been on an acquisition bender:
- Bespoke Innovations in May for 3D printed personalized prosthetics
- FreshFiber in May 2012 for 3D printed electronics accessories
- My Robot Nation in April 2012 for creative solutions to support 3D printing community Cubify for kids and adults
- Paramount Industries in April 2012 to advance aerospace and medical device 3D printing
3D Systems also posted a healthy Q1 with record revenue and printer units sold. We reported how 3D printing stocks are hot, up 180% over 6 months and beating out the stock market indices.
Based on this announcement, it appears that more consolidation is on the roadmap for the 3D printing industry, and that 3D Systems is looking to take an early lead as juggernaut in the market.
