Tag Archives: FreshFiber
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 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.
Top 10 Countdown: Most Popular 3D Printing Stories in May 2012
Here are the top 10 most popular stories On 3D Printing brought you in May 2012.
10. 3D Systems acquired FreshFiber for 3D printed electronics accessories.
9. We wrote an editorial analyzing the space of 3D printing creators and consumers.
8. We reviewed SketchUp, Tinkercad, and 123D modeling software.
7. The fashion runway was 3D printed in Belgium.
6. The Motley Fool weighed in on public 3D printing manufacturers.
5. We featured companies exhibiting at Maker Faire Bay Area 2012.
4. Why Google sold SketchUp and what it means for 3D printing.
3. A 3D printing vending machine surfaced at Virginia Tech.
2. This New House: constructing and printing WikiHouse.
1. We featured Brad Feld as a premiere venture capitalist looking at 3D printing investments.
Thanks for reading in May!
3D Systems CEO: 3D Printing Will Be As Big As the iPad
The Cube is coming and it’s going to help 3D printing be as big as the iPad.
That’s the message 3D Systems CEO Abe Reichental wants you to understand. The Cube is 3D Systems’ new printer targeted at the mass consumer. It simplifies the process of getting from design to print via embedded Wi-Fi and cloud printing. The Cube will retail for $1,299 which undercuts the current consumer standard MakerBot Replicator by $500.
There is no doubt that Mr. Reichental has conviction about his belief in the growth of the 3D printing industry. 3D Systems transfered from NASDAQ to NYSE just one year ago and has grown its market cap by 40%. It has since been on an acquisition tear, picking up My Robot Nation, FreshFiber and several other companies. The 3D printer company recently reported record revenue for Q1 and is now placing bets on its Cube consumer printer and Cubify design portal.
In an interview with VentureBeat, Mr. Reichental commented on why 3D printing will become as big as the iPad:
There are very few artists around the world that can start painting on a blank canvas, but there are millions of people who can use a coloring book.
And further on his expectations for printer prices over time:
The prices will come down. It’s inevitable that in the next year or year-and-a-half prices will be half of what they are today, and then come down again.
We are excited to see the launch of the Cube printer!
Via VentureBeat.
iPad Crowd photo from niallkennedy used under Creative Commons license.
