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ROCK HILL, S.C. - 3D Systems (NYSE:DDD), a leader in additive manufacturing technologies currently valued at $287 million in market capitalization, has finalized the sale of its Geomagic software suite to Hexagon’s Manufacturing Intelligence Division for $123 million, the company announced today. This divestiture is part of a strategic move to focus on its core software solutions, including 3D Sprint®, 3DXpert®, and Oqton Industrial Manufacturing OS. According to InvestingPro data, this sale comes at a crucial time as the company has been quickly burning through cash with a negative free cash flow yield.
The sale, which was completed after meeting customary regulatory approvals and closing conditions, is expected to net approximately $100 million in proceeds for 3D Systems. These funds are earmarked to reinforce the company’s balance sheet and to invest in initiatives aimed at driving future growth and profitability in the production application space. The company maintains a healthy current ratio of 3.08, with liquid assets exceeding short-term obligations, though it operates with a moderate debt-to-equity ratio of 1.56.
Dr. Jeffrey Graves, president & CEO of 3D Systems, expressed confidence in Hexagon’s capability to elevate the Geomagic portfolio and gratitude towards the Geomagic team members for their contributions. He emphasized the company’s intention to continue enhancing its core platforms through research and development, with a particular focus on integrating artificial intelligence and automation. The goal is to expedite the adoption of 3D printing technologies in high-volume production environments.
The transaction significantly bolsters 3D Systems’ cash reserves, providing a robust foundation for the company to execute its strategic plans in the coming quarters. The company’s dedication to advancing its additive manufacturing software platforms is poised to improve workflows, reduce costs, and enable customers to scale production effectively.
This news is based on a press release statement and contains forward-looking statements regarding the company’s future performance and results. These statements are subject to risks and uncertainties, and actual outcomes may differ materially from those projected in the forward-looking statements. 3D Systems has not made any further commitments to update or revise these projections, except as required by law. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional ProTips and comprehensive financial metrics available to subscribers through the Pro Research Report, helping investors make more informed decisions about the company’s prospects.
In other recent news, 3D Systems reported a challenging fourth quarter of 2024, with revenues falling short of expectations. The company announced total revenue of $111 million, a 3% year-over-year decline, which was below the $115.6 million forecast. The Healthcare Solutions segment saw a significant revenue drop of 21% to $40.4 million, partly due to an accounting adjustment in the Regenerative Medicine program. Despite these setbacks, 3D Systems’ Industrial Solutions sector experienced an 11% increase in revenue, reaching $70.7 million. The company’s non-GAAP earnings per share (EPS) for the quarter was reported at $(0.19), missing the projection of $(0.12) by Cantor Fitzgerald, which maintained its Overweight rating on the stock with a $5.00 price target. Conversely, Craig-Hallum lowered its price target for 3D Systems to $2.50, citing ongoing challenges and potential improvements in financial performance. The company is expected to enhance its balance sheet following the anticipated closure of the Geomagic business sale, projected to bring in approximately $100 million.
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