3D Systems (NYSE:DDD) announced a multi-faceted restructuring initiative designed to improve operating efficiencies that include optimizing its European metal printer operations and streamlining its software organization. The initiative is expected to reduce operating expenses in 2023 by approximately $2.5 million to $3.5 million, and provide an annualized savings of approximately $5.5 million to $7.0 million in 2024 and beyond.
As a key aspect of the restructuring initiative, the company will consolidate the engineering and manufacturing of its metal printers to reduce cycle time on new product introductions and increase operational efficiencies. The company’s metal additive manufacturing products include the DMP 200 (small), DMP 350 (medium), and DMP 500 (large), direct laser sintering systems.
Also as part of the restructuring initiative, 3D Systems has streamlined its software development operating structure to further reduce ongoing operating expenses. Software is an essential element of the company’s future growth strategy, and over the past year, the company has merged its legacy portfolio of 3D printing applications with the Oqton Manufacturing Operating System organization, creating an integrated end-to-end software suite under a unified management structure. The software-related cost savings announced today reflect synergies derived from this successful integration effort.
Activities related to these restructuring initiatives will begin immediately and are expected to be completed by mid-2023.
Commenting on the initiative, 3D Systems’ President and CEO, Dr. Jeffrey Graves said, “These restructuring efforts are an extension of the work we began in late-2020 to streamline our operational footprint and better leverage our company scale in additive manufacturing. Over the last year, we have made significant progress through the focusing of our development activities and by selectively insourcing the manufacture of our high-complexity, high-value 3D polymer printers. These efforts have reduced operating costs while improving customer quality and delivery reliability. With momentum established in our polymer platform operations, we will now extend our focus to our metal systems, bringing together and streamlining our engineering and operations teams. With regard to software, through the acquisition of Oqton and the subsequent consolidation of our software platforms under a unified organizational structure, we have now enabled further operational efficiencies to be gained in this key area of the company. While we have significant benefits to realize from all of these efforts, they by no means represent the last chapter of efficiency improvements that are available to us. Moving forward, we will continue to implement improvement plans to meet our goal of being the leading, most successful additive manufacturing company in the world.”
Find out more about 3D Systems at 3dsystems.com.
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