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3D Systems Partners with PTC; Unveils New Strategy

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At an exclusive launch event yesterday, 3D Systems Corporation (DDD - Free Report) unveiled its new growth strategy and forged an important partnership with PTC. Further, the leading 3D printing player launched its 3DXpert software for direct metal 3D printing. The company also declared additions to its management team.

Collaboration with PTC

3D Systems believes that collaborations are a key part of its new growth strategy. In line with its plans of expanding the partner ecosystem, 3D Systems has entered into a fresh partnership with PTC, an American software company specializing in 2D and 3D design. PTC is also a leading provider of CAD, PLM, and IoT (Internet of Things) technology.

This alliance will see the two leaders joining forces to integrate 3D Systems’ 3D Sprint SDK into PTC’s flagship Creo CAD platform. This will, in turn, deliver seamless CAD-to-print functionality to Creo users, in addition to an entire set of print management tools.

Strategy: From Prototyping to Production

3D Systems has announced several vital changes to deal with the afflictions of the troubled 3D printing industry. The company launched its 3DXpert software solution for direct metal 3D printing,which assembles all necessary software features (like data importing, geometry optimization, etc.) into one package. This eliminates the need for multiple applications by different developers.

3D SYSTEMS CORP Price and Consensus

 

3DXpert also aids in saving valuable time and maintaining greater flexibility on change handling with history-based parametric CAD tools. Further, 3D Systems also revealed the latest advancements to its Figure 4 technology – the ultra-fast, modular Stereolithography system – designed for the production of plastic parts on the factory floor.

CEO Vyomesh Joshi – a relatively new addition himself to the company – appointed several new members to the team. This will facilitate the new business framework which will be centered around regional execution teams.

These initiatives are a bold, definite step toward the company’s transition from prototyping to production. They will enable its additive manufacturing clients to leverage its digital manufacturing solutions.

3D Printing at Inflection Point?

Most would agree that the 3D printing industry has failed spectacularly to live up to its initial hype. However, after a volatile few years, we believe that the industry might just be at an inflection point.

Even as some major 3D printing companies are taking a step back from the consumer market, most players have been diligently stepping up their efforts to carve a niche in the industrial market. Industry players are gradually shifting toward production of end-use products for industrial clients, in the face of weak demand from the consumer business.

In fact, some would say that this space is gaining serious momentum, if the actions of leading industry players are anything to go by. Last month, industry giant Stratasys (SSYS - Free Report) launched two new products and also entered into an alliance with Boeing Co. and Ford Motor Co. HP Inc. (HPQ - Free Report) launched its first set of industrial 3D printers in May.

Also, to top it all, just last week, General Electric Company (GE - Free Report) invested $1.4 billion to buy two European 3D printing firms — SLM Solutions Group and Arcam. For this conglomerate, the technology would give the flexibility to build custom parts with the latest metal-based additive manufacturing.

These developments mark the industry’s shift to production and new end uses in industries like aerospace and healthcare, though it may take a few years to take hold.

It seems like 3D Systems is doing all it can to stay ahead of this paradigm industry-wide shift. With major companies investing significant amounts of money in production-ready additive manufacturing firms, the signs indicate that the company is headed the right way.

3D Systems currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).

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