- Acquired capabilities catapult 3DS multi-jet printers a decade ahead
- Investment cements 3DS leadership and accelerates future growth
ROCK HILL, S.C., Jan. 2, 2014 (GLOBE NEWSWIRE) -- 3D Systems (NYSE: DDD ) announced today that it completed the acquisition of Xerox's solid ink engineering and development teams and state of the art development labs and relevant patent portfolio for $32.5 million in cash. The company expects the acquisition of these highly specialized printer design and material science teams together with their labs and relevant IP to catapult its printers' development and manufacturing capabilities a full decade forward and to substantially accelerate its revenue growth-rate over time.
"This bold step is consistent with our belief that we must act quickly and decisively to extend and cement our marketplace leadership position and leverage unique opportunities to bring affordable, high performance new products to market years ahead of what would have been possible to accomplish organically," said Avi Reichental 3D Systems' President and CEO.
As part of this agreement, 3DS added more than 100 experienced Xerox engineers and contractors specializing in product design and materials science to its global R&D team and plans to immediately begin to operate its own facility within the Xerox Wilsonville campus.
In connection with this strategic investment, 3DS expects to increase its annual R&D expenditures over the next few years by approximately 75% to 100% from its full-year 2013 R&D expense as it completes certain Xerox related engineering services commitments and fully leverages its expanded capabilities, and expects to realize net revenue benefits by the fourth quarter of 2014.
"The stronger our marketplace leadership, the more powerful our economic model becomes," continued Reichental. "Simply put, a solidified position translates directly to higher revenue, higher profitability and greater earnings power over time and we are willing to sacrifice short term earnings to get there faster."
Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.
About 3D Systems Corporation
3D Systems is a leading provider of 3D printing centric design-to-manufacturing solutions including 3D printers, print materials and cloud sourced on-demand custom parts for professionals and consumers alike in materials including plastics, metals, ceramics and edibles. The company also provides integrated 3D scan-based design, freeform modeling and inspection tools. Its products and services replace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. These solutions are used to rapidly design, create, communicate, prototype or produce real parts, empowering customers to manufacture the future .
More information on the company is available at www.3DSystems.com .
Investor Contact: Stacey Witten Email: Media Contact: Alyssa Reichental Email:
