In line with its strategy to step away from consumer level 3D printers, 3D Systems Corporation offloaded its unit STEAMtrax to Polar 3D. The financial terms of the deal were kept under wraps.
Polar 3D will be acquiring STEAMtrax’s technology, customers and its team. Former CEO of STEAMtrax and recently VP, Global K-12 Education at 3D Systems, Dee Kerr is joining Polar 3D as its President.
STEAMtrax is an online, STEAM based curriculum that integrates 3D printing technology, engineering and CAD modeling with fundamental academic streams like science, arts, math, language, social studies and art. The platform’s transition to Polar 3D will enable it to leverage the Polar Cloud and integrate a Cloud-based learning system.
STEAMtrax had earlier integrated its 3D design, printing, and scanning programs with 3D System’s now discontinued Cube 3D printer and Sense Scanner. The platform can help create customized curricula with problem based, thematic storylines, thus making education relevant and fun.
Polar 3D is committed to implement 3D printing in schools, introducing and developing the educational use of the technology, thus driving the younger generations toward innovation and an entrepreneurial frame of mind.
3D Systems is undergoing a restructuring phase and plans to channelize its resources toward more profitable areas in professional and industrial markets. The leading 3D printer maker recently announced its decision to cease the production of Cube, its entry-level consumer 3D printer. Although this might hurt revenues in the short term, we believe that it will direct the company’s resources toward higher margin products, enhancing profitability in the long run.
Over the past few quarters, 3D Systems has been experiencing unfavorable broader market conditions that have badly hit its financial performance. However, with the 3D printing industry gaining traction again after a prolonged period of decline, 3D Systems seems set to chart a favorable long-term growth graph.
In fact, per the Wohlers Report 2014, the worldwide 3D printing industry is expected to grow to $12.8 billion by 2018 from $3.07 billion in 2013 in terms of revenues, and exceed $21 billion by 2020 with a CAGR of 34%. As the industry leader in 3D printing, 3D Systems retains its strength to capitalize on the favorable market conditions.
3D Systems currently holds a Zacks Rank #2 (Buy). Other favorably ranked stocks in the industry are Stratasys Ltd. , Identiv, Inc. and Lenovo Group Limited . While Stratasys sports a Zacks Rank #1 (Strong Buy), Identiv and Lenovo carry the same Zacks Rank as 3D Systems.
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