3D Brings DuraForm to Market

3D Systems (TDSC - Snapshot Report) recently introduced a new fire-resistant sintering material, named DuraForm FR 100 Plastic. This new and innovative product meets the requirements of a broad range of aircraft and consumer-product applications.

The new DuraForm FR 100 Plastic offered by the company is somewhat different from other available flame-retardant sintering materials, passes the flame, smoke and toxicity tests for aircraft applications and has a UL 94 V-0 rating, which is absolutely essential for many consumer product applications. Aside from this, the product is non-halogenated and antimony free, and complies with many government directives for human health and safety.

We expect this product to create a niche market for itself, as it is amendable to broad-based applications like direct manufacturing of aircraft parts, including cockpit and cabin components, and direct manufacturing of parts for consumer products, including lighting, electronics and appliances.

This product is very effective, and at the same time it has progressed through government safety measures. This makes it a preferred raw material for industries like consumer durable, aviation, electronic and electrical appliances. This product has the potential to create value and generate demand for the company.

Introduced at a time, when things are not going smoothly for 3D Systems, we believe DuraForm FR 100, will take some time to make a mark for itself. Apart from introducing new products, the company is aggressively reducing operating expense, and increasing customer base. But we do not expect these to have a significant impact on the company's profitability in fiscal 2009. We reiterate our Hold rating on the stock.