ROCK HILL, S.C. - 3D Systems (NYSE:DDD), a key player in additive manufacturing solutions, has announced a strategic partnership with Precision Resource, a leader in critical component production. The collaboration aims to enhance and expedite metal additive manufacturing (AM) applications in sectors where precision is paramount, such as automotive, aerospace, and medical devices.
As part of the agreement, Precision Resource will add two 3D Systems DMP Flex (NASDAQ:FLEX) 350 Dual 3D printers to its AS9100-certified facility in Huntington Beach, California. This move is expected to integrate seamlessly with Precision Resource's existing production capabilities, which include 5-axis machine centers and advanced inspection systems. The partnership is intended to expand the company's offerings and open new market opportunities.
The DMP Flex 350 Dual printer is renowned for its environmental control and inert atmosphere, which are critical for producing high-quality parts. Its design features a vacuum chamber concept that significantly reduces argon gas consumption while ensuring the production of strong parts with high chemical purity and excellent surface finishes.
Chris Gratton, General Manager of Precision Resource, expressed enthusiasm for the partnership, highlighting the potential to leverage advancements in metal AM to maintain their position at the forefront of technology.
Jeph Ruppert, Vice President of Technical Business Development at 3D Systems, echoed these sentiments, emphasizing the importance of innovation in meeting the demands of complex production environments.
The collaboration is not only a testament to both companies' commitment to excellence and innovation but also a strategic move to address supply chain issues through vertical integration. The combined expertise of 3D Systems and Precision Resource is expected to result in a robust, end-to-end manufacturing solution for AM parts that satisfies the rigorous performance requirements of high-criticality components.
The information in this article is based on a press release.
3D Systems has been a pioneer in 3D printing technology for over 35 years, offering comprehensive solutions across healthcare and industrial markets. Precision Resource, with its heritage as a tool shop since 1947, has grown to become a prominent supplier of fineblanked components and other precision manufacturing services globally.
In other recent news, 3D Systems has made significant strides in the digital dentistry market, securing a multi-year contract estimated to be worth nearly a quarter-billion dollars through 2025. This deal, which supports the production of clear aligners, reinforces the company's role as a leading supplier of 3D printing technology in the orthodontics space.
Further diversifying, 3D Systems is also moving into the production of night guards and pursuing regulatory clearances for its innovative dentures. The company anticipates FDA clearance for its denture solution in the second half of 2024.
In another development, 3D Systems has obtained FDA 510(k) clearance for its VSP PEEK Cranial Implant, a 3D-printed, patient-specific implant for cranial reconstruction. This approval broadens the use of the company's additive manufacturing solutions in the United States. The VSP PEEK Cranial Implant system, which produces implants with significantly less material than traditional methods, has already been used in nearly 40 successful cranioplasties across Europe.
The market for cranial reconstruction is expected to grow, reaching $2.1 billion by 2030, providing a solid base for 3D Systems to expand its PEEK product portfolio and explore additional orthopedic applications.
InvestingPro Insights
In light of 3D Systems' (NYSE:DDD) recent strategic partnership with Precision Resource, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, 3D Systems has a market capitalization of 427.58 million USD. Despite a challenging environment, the company managed to secure a gross profit margin of 40.73% over the last twelve months as of Q1 2023. However, the company's revenue did see a decline of 9.29% during the same period.
Investors should note that 3D Systems has experienced significant volatility, with a price total return of -66.49% over the past year as of a recent 2024 date. This could be indicative of market sentiment and the risks associated with investing in a company that is rapidly evolving its technology and market strategy. Additionally, InvestingPro Tips suggest that the company's net income is expected to grow this year, which could signal a turnaround from its current state of not being profitable over the last twelve months.
Another critical factor for potential investors is the company's cash flow situation. One of the InvestingPro Tips states that 3D Systems is quickly burning through cash, which could raise concerns about its long-term financial sustainability, especially considering that the company does not pay dividends to shareholders. On the positive side, the company's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term.
For those interested in a deeper dive into 3D Systems' financials and market performance, InvestingPro offers additional insights and tips. There are 15 more InvestingPro Tips available for 3D Systems, which can be accessed by visiting https://www.investing.com/pro/DDD. To get the most out of these insights, use the coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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