Home Industry Fathom: 3D printing service provider experiencing financial ups and downs

Fathom: 3D printing service provider experiencing financial ups and downs

Fathom, a company specializing in additive manufacturing, has had a turbulent year. The annual report for 2023 reveals considerable financial challenges for the listed 3D printing service provider. The tense economic situation and an increasingly competitive market had a negative impact.

Turnover fell by 18.5 percent year-on-year to 131.3 million US dollars. Divisions such as sheet metal processing, injection molding and CNC milling were particularly affected. The 3D printing sector generated USD 11.7 million, which only accounted for 8.9 percent of total sales, but represented a decline of 21.5 percent. Despite the general downward trend, Fathom sees great growth potential in additive manufacturing and intends to expand its market leadership in this area.

The restructuring and cost-cutting measures could not prevent the operating loss of 23.2 million US dollars. However, this was significantly lower than the massive loss of 1.21 billion US dollars in the previous year, which was mainly due to a billion-dollar impairment.

In order to stabilize the financial situation, Fathom implemented a massive staff reduction of around 20 percent and closed loss-making locations such as the one in Miami. Additional cost savings resulted from the consolidation of facilities and restructuring.

There were also personnel changes at the top of the company. In the fourth quarter, Carey Chen replaced long-standing CEO Ryan Martin. Chen takes the helm during a critical transition phase for Fathom. The company is facing a planned merger with the financial investor CORE Industrial Partners, which already holds over 60 percent of the shares.

It remains to be seen whether the restructuring and cost-cutting measures will have a lasting effect. The management hopes that focusing on innovative digital manufacturing processes will improve growth prospects. The 3D printing division will play a key role in this.

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