3D Systems (DDD) Shares Rally After Sale of STEAMtrax Unit to Polar 3D
Shares of 3D Systems Corporation (DDD) were trading up +1.36 or +8.19 percent to $17.96 per share in Thursday’s premarket after the company announced late yesterday that it would be offloading its unit STEAMtrax to Polar 3D for an undisclosed amount. 3D Systems stock closed at $16.60 per share, down -0.03 or -0.18 percent in Wednesday’s regular trading session.
In a transaction where the financial details were kept confidential, 3D Systems completed the sale of its STEAMtrax unit to Ohio-based company, Polar 3D yesterday. The move is in keeping with 3D Systems strategy to move away from consumer level 3D printers.
The transaction includes the STEAMtrax technology, customers and team, with former Chief Executive of STEAMtrax Dee Kerr joining Polar 3D as its president. STEAMtrax is an online STEAM-based curriculum which integrates 3D printing technology with Computer Aided Design or CAD, engineering and CAD modeling with fundamental academics such as science, the arts, languages, mathematics and social studies.
Hugh Evans, Vice President for Corporate Development and Ventures at 3D Systems said, “We are pleased to have found such a suitable home for STEAMtrax and will continue to support its growth. We are impressed with the design of the Polar desktop printer, the power behind the Polar Cloud, and the company’s focus on education.”
3D Systems is currently in a restructuring phase, with plans to channel more resources in developing profitable areas in industrial and professional markets. The company recently announced it would cease production of its entry-level consumer 3D printer, the Cube.
STEAMtrax had integrated its 3D design, scanning and printing programs to the now discontinued Cube 3D printer and Sense Scanner. The platform can aide in the creation of customized curricula with thematic, problem-based storylines that can make education relevant and entertaining.
3D Systems stock is in the process of recovering since dropping under $7 per share in January. The stock was trading over $32 per share one year ago and is currently making a significant comeback with the company’s restructuring. The 3D printing business is forecast to increase as the general economy continues to improve and with 3D Systems leading position in the market, its stock will continue to appreciate.
Other News About DDD
3D Systems Expands MultiJet Printing with ProJet MJP 2500
Company makes its latest 3D printers available commercially.
3D Systems Develops Standardized Curriculum for Bronchoscopy in Collaboration with the American College of Chest Physicians
New module combines cognitive knowledge with skill based training.
Other Stocks in the News
Wells Fargo Profit Falls 5.9% on Higher Loan-Loss Provisions
Company cited soured energy loans and increased expenses.
Delta Air profit tops expectations; smaller unit revenue decline seen
Second largest U.S. airline earned $946 million in the first quarter.