BOSTON - Desktop Metal, Inc. (NYSE:DM), known for its additive manufacturing technologies, has announced a new sale of its PureSinter Furnace to AmPd Labs, a Houston-based service provider in the additive manufacturing (AM) sector. The PureSinter Furnace, which promises high-purity vacuum performance for both additive and traditional manufacturing methods, is set to begin customer shipments this quarter.
AmPd Labs, a customer of Desktop Metal since 2021, incorporates a range of AM services from initial design to full-scale production, utilizing technologies such as Desktop Metal's laser-free binder jetting alongside other methods for fabricating metal and polymer parts. With the addition of the PureSinter Furnace, AmPd Labs aims to enhance its production capabilities to meet high-volume customer demands.
The PureSinter Furnace, introduced in June, features a design intended to address common challenges in traditional furnace operations. It boasts hot walls to prevent contamination and an airtight processing environment that facilitates efficient waste exit while maintaining high purity levels. This design is patent-pending and is said to be a significant technological advancement in the field.
Desktop Metal's CEO, Ric Fulop, expressed enthusiasm for AmPd Labs' adoption of the new furnace, highlighting it as an example of the innovation that Desktop Metal is known for in the industry. AmPd Labs COO & Co-Founder, Sean Harkins, echoed this sentiment, labeling the PureSinter as a game-changer for the company's production processes.
The PureSinter Furnace is compatible with various manufacturing methods, including Metal Injection Molding (MIM) and Press and Sinter (PM), in addition to additive manufacturing processes such as Bound Metal Deposition® (BMD) and Binder Jetting (BJT).
Desktop Metal, headquartered in Boston, continues to drive forward the Additive Manufacturing 2.0 era, focusing on digital mass production across industrial, medical, and consumer sectors with its array of 3D printers, materials, and software solutions.
This announcement is based on a press release statement from Desktop Metal, Inc. and provides an overview of the transaction without endorsing the claims. The information regarding the new PureSinter Furnace and its capabilities has not been independently verified and should be understood as claims of the company.
In other recent news, Desktop Metal Inc (NYSE:DM). experienced a change in its stock rating. An analyst from Cantor Fitzgerald downgraded the company from Overweight to Neutral, setting a new price target of $5.50. This adjustment follows the anticipation of Desktop Metal's impending merger with Nano Dimension (NASDAQ:NNDM). The company also implemented a 1-for-10 reverse stock split of its Class A common shares to comply with the New York Stock Exchange's minimum bid price requirement, leading to Cantor Fitzgerald raising its price target for Desktop Metal from $1.25 to $12.50.
In financial updates, Desktop Metal reported a slight decrease in its revenue for the first quarter of 2024, amounting to $40.6 million. However, recurring revenue reached a record 43% of total revenue, indicating strong product utilization. The company managed to reduce its operating expenses for eight consecutive quarters and improved its adjusted gross margin for nine consecutive quarters.
For 2024, Desktop Metal anticipates generating revenue between $175 million and $215 million and expects to achieve positive adjusted EBITDA in the second half of the year. These recent developments highlight the company's strategic actions to maintain its market position and financial health.
InvestingPro Insights
As Desktop Metal, Inc. (NYSE:DM) gears up to ship its new PureSinter Furnace, investors and industry observers are closely watching the company's financial health and market performance. With a market capitalization of $174.47 million, the company's size is modest relative to some of its peers in the technology sector. Notably, Desktop Metal's revenue over the last twelve months as of Q1 2024 stands at $188.98 million, although it has experienced a slight decline of 8.54% during this period. This trend is mirrored in the quarterly revenue growth, which dipped by 1.73% in Q1 2024.
Despite the challenges, the company's liquid assets have been sufficient to cover its short-term obligations, which could offer some reassurance to investors concerned about the company's immediate liquidity. This insight aligns with one of the InvestingPro Tips, which highlights that Desktop Metal's liquid assets exceed its short-term liabilities. However, the company's gross profit margins remain weak at 13.65%, underscoring the importance of operational efficiency and cost management as it scales up production and sales of its new furnace.
Investors may also take note of the stock's price volatility, as Desktop Metal's shares have exhibited significant fluctuations. Over the last year, the price has decreased by 70.55%, indicating a period of bearish sentiment. Yet, there's a silver lining with a strong return over the last month, showing a 29.78% increase, which could suggest a potential turnaround or a positive market reaction to recent developments.
For those considering an investment in Desktop Metal, it's worth noting that the company does not currently pay a dividend, which may influence the decision-making of income-focused investors. Additionally, with analysts not expecting profitability this year, potential investors should carefully weigh growth prospects against the current financial metrics. For a deeper dive into Desktop Metal's financials and additional InvestingPro Tips—such as the company's cash burn rate and valuation implications—visit https://www.investing.com/pro/DM. There are 12 additional tips listed in InvestingPro that could provide further insights. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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