#9 Everything will be fine

At the very end of August, 3D Systems and Stratasys announced their financial results for the second quarter and the first half of 2024. Let's be honest—they were poor. The weakest since the 2020 collapse triggered by the C19 pandemic and resulting lockdowns. Stratasys decided not to wait and announced a 15% reduction in workforce, which translates to about 300 people who will soon lose their jobs.

Yes, the results were that bad.

Inspired by this, I wrote a long article on Medium and Substack, where I briefly discuss the financial results of both companies, but mainly reflect on the fundamental sense of running a business for over 35 years that constantly experiences such ups and downs.

A business that always feels like early spring, just moments before blooming.

As my dear friend Micha? Wojnarski says - "3D printing is an industry that has been about to explode for 30 years!"

Meaning that everyone will soon be using it massively, and we'll all make a lot of money from it.

Why you do this? – I ask both 3D Systems & Stratasys in the article, trying to find meaning in this never-ending race "to provide exceptional value to shareholders," which usually ends in a quarterly loss of several to tens of millions of dollars.

Building long-term value makes sense, but for 35 or 38 years? There are plenty of people in the world who have never reached or will never reach that age.

And what do the people running these companies think about all this? In his commentary on the results, Dr. Yoav Zeif, the current Chief Executive Officer of Stratasys, was rather reserved in his words. In a very veiled, corporate manner, he addressed the need to cut the company's fixed costs, which obviously is meant to secure its future and allow it to continue operating normally.

But Dr. Jeffrey Graves, CEO of 3D Systems, was bursting with optimism!

In a nutshell:

For the entire first half of the year, 3D Systems’ revenues fell by -13.3% (from $249.4 million in 2023 to $216.2 million in 2024), while the net loss decreased from -$58.3 million to -$43.4 million. Quarterly results dropped by -11.7% year-on-year, with Healthcare Solutions alone seeing a decline of -19.7%.

The positive? Apart from lower loss, comparing revenues quarter-on-quarter (i.e., Q2 with Q1 2024), there was a +10% increase.

The company expects to close the year with revenues in the range of $450–460 million. This would be about $20-30 million less than last year and would be the worst result since 2012 when the company achieved $354 million in revenue.

Nevertheless, Dr. Jeffrey Graves claims that everything is under control. Yes, there have been setbacks, but the company has taken a number of actions that warrant optimism for the future.

But let’s hear from Mr. Graves himself:

While conditions remain challenging in the near-term, we have taken considerable actions to de-risk our balance sheet since the end of 2023 and believe we are well-positioned with our critical R&D investments to capitalize on a very bright future ahead.

A very bright future ahead.

But all of this is nothing compared to what Yoav Stern—CEO of Nano Dimension and one of the most colorful figures in the AM industry—said.

Because Nano Dimension also announced its results—quarterly and half-year. And it turned out that the second quarter of 2024 was the highest in terms of revenue in the company’s history! $15 million. The previous record was $14.8 million. This is a big deal.

Of course, there’s also an operating loss, but for now, what’s important is what Yoav Stern said in the context of his company and in general:

Exciting times are ahead, as your company continues to improve from the top to the bottom line. (…)

But we are not only resting on our laurels. We see continued improvements in our financial strength as we move below the top-line and into our cash flow. (…)

There is more to do. While our employees should be proud of what they have achieved, management should not rest (…)

We will continue to pursue operational excellence and a M&A strategy that complements our offerings, supporting our journey to becoming leaders in digital manufacturing.(...)

You know what? I decided to believe both of them.

I'm glad they said that. I feel reassured.

After all, when the oldest and still one of the largest companies in the industry like 3D Systems is doing well, the whole industry benefits. And when Yoav Stern makes promises of growth, you know he must be telling the truth.

That’s very good. Very nice.

So I've decided to start changing my approach. No more "this is all going wrong; this is not going to work out" mantra. End of this sad bulls**t.

Since now - quite the opposite.

Everything will be fine. Until it finally explodes!

So much for the introduction. And now, without further ado...

The Three Market Laws of Additive Manufacturing have been published!

Many of you have probably already seen my articles on 3DPrint.com , but in case someone hasn’t had the chance to read them, I’m including links to them below. I’ve also briefly described the background behind their creation, as the ideas behind these articles date back to April of last year!

Thank you very much for all the positive feedback on my publication.

I must admit I had some concerns about the reactions to the theses I presented there. However, it turned out that either they are so accurate that there’s nothing to "criticize," and they just have to be accepted, or they are so general that they are always true…

Either way – thanks again!

With the publication of the "Three Market Laws of AM," I’ve started catching up on overdue topics. In the coming days and weeks, there will be some very interesting interviews with representatives of leading companies in the global AM industry. These will be very unexpected companies and names, but I assure you that they will be truly fascinating materials.

There will also be exciting collaborations with interesting—and again—very unexpected companies. You can join them.

The Don Draper of the AM industry is open to collaboration proposals.

That's all from me – for now, I invite you to read:

• 3 articles on Medium
• TOP 7 news of the week
• TOP 7 historic events in the 3D print world.

#7. Markforged upgraded FX10 for metal 3D printing

Last year, Markforged introduced the latest 3D printer in its portfolio for working with high-performance composites—the FX10. Now, the company has launched a new feature in the form of the FX10 Metal Kit, which enables the printer to work with metal-infused filaments.

In addition to the upgrade for the 3D printer, Markforged has also introduced a new metal filament made of 316L stainless steel, which is compatible with the FX10.

The FX10 Metal Kit consists of a replaceable print engine with a print head, feed tubes, a back guide, and dual pre-extruders. Markforged claims that switching from the composite extruder to the metal one takes only 15 minutes.

Read more about it in the VoxelMatters article.

#6. Nikon SLM Solutions announces sale of its 50th NXG metal 3D printer

Sam O'Leary , CEO of Nikon SLM Solutions , announced that the company he leads has reached a significant milestone by selling its 50th NXG machine. According to O'Leary, this highlights the growing demand for large-format metal 3D printing systems. The company's flagship machine is the NXG XII 600, equipped with 12 lasers.

David Share was the first to report this.

#5. Nano Dimension and Desktop Metal close to formal merger

On July 3, 2024, Nano Dimension and Desktop Metal unexpectedly announced that they were merging in a deal worth approximately $180 million. However, just because the parties have reached an agreement doesn't mean they can merge just like that. The shareholders of both companies must approve it (lack of such approval buried the last year Stratasys deal), and it must be sanctioned by regulatory authorities in the U.S., such as those under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The Hart-Scott-Rodino Act is a U.S. federal law that requires companies to notify the Federal Trade Commission and the Department of Justice about certain proposed mergers and acquisitions. They must then observe a waiting period before closing the transaction, giving U.S. antitrust authorities the opportunity to review the deal. With the waiting period expired, no further regulatory review is required by U.S. antitrust authorities concerning the acquisition.

Now, Nano Dimension has announced that the waiting period has expired. After nearly two months, the companies have overcome a significant regulatory hurdle in their efforts to close the transaction.

The deal is still subject to other customary closing conditions, including approval by Desktop Metal shareholders. However, Nano Dimension and Desktop Metal consider this a “significant step” toward finalizing the acquisition. Both companies state that the target closing timeline in Q4 2024 remains on track.

As a reminder, Nano Dimension will acquire all shares of Desktop Metal in a cash transaction at $5.50 per share. At $5.50 per share, the transaction represents a 27.3% premium to Desktop Metal's closing price and a 20.5% premium to the 30-day VWAP as of July 2, 2024, totaling approximately $183 million, potentially up to $4.07 per share or $135 million in total.

Read more - including details of Nano Dimension financial reports in article by Vanesa M. Listek at 3DPrint.com .

#4. The 3D Systems Q2 and H1 report

In fact, everything has already been described in the introduction. You can read the comprehensive data here – including the full statement by Dr. Jeffrey Graves.

#3. Stratasys announces restructuring

Even they aren’t immune to crisis… Stratasys – still the largest company in the AM industry by revenue – has announced its financial results for Q2 and H1 2024. The results are weaker than those of previous years and align with the overall trend in the industry. Moreover, Stratasys has announced a significant restructuring plan, including laying off 15% of its workforce.

In Q2 2024, Stratasys generated $138 million in revenue, compared to $159.8 million in the same period in 2023, marking a -13.59% year-over-year decline. For the first half of the year, the company generated $282.1 million in revenue, compared to $309.13 million in 2023, representing a -8.75% decline. The net loss for Q2 was -$25.74 million, a reduction by one-third compared to last year’s loss of -$38.6 million. The loss for the first half of the year was -$51.73 million, compared to -$60.84 million in 2023.

The company’s revenue declined similarly in both product sales (3D printers and materials) and services provided.

Regarding workforce reductions, by the end of this year, Stratasys intends to lay off approximately 15% of its global workforce. The company employs a total of 1,980 people worldwide, including 537 in Israel. While Stratasys did not disclose the exact number of layoffs, it is estimated to be around 300 employees, including about 80 in Israel. This is expected to result in $40 million in annual cost savings starting in Q1 2025.

Even Times of Israel wrote a story about this.

#2. ADDMAN Group created the largest metal AM service provider in North America

ADDMAN Group has officially integrated Keselowski Advanced Manufacturing (KAM), creating the largest metal AM service provider in North America. The combined entity now operates over 50 metal 3D printers across more than 300,000 square feet of manufacturing space, with KAM's 70,000-square-foot facility in North Carolina playing a crucial role. Brad Keselowski, founder of KAM, will continue contributing as a commercial advisor to ADDMAN's Board of Directors, ensuring seamless integration and fostering ongoing innovation.

KAM and ADDMAN both heavily serve the defense and commercial space markets, and uniting is a force multiplier in how the organization will support this sector.

Read full article at VoxelMatters.

#1. The Three Market Laws of Additive Manufacturing – ?behind the scenes” & useful resources

Here's the story. A year ago, as GREENFILL3D , we created a collection of protective frames for light switches and electrical outlets. They were made from several eco-friendly materials provided by leading manufacturers—Polish companies Grupa Azoty, Spectrum Filaments, and ROSA3D, as well as the Chilean company Copper3D.

Additionally, the frames were printed in full color with graphics using UV LED technology. Everyone loved them.

We created a dedicated brand—COLORISED—and started promoting them as our own product. I prepared a press release and sent it out in two versions—one for the AM industry and one for the interior design and lighting industry. There were a total of several dozen (well over 50).

All the AM industry media published it. None of the interior design and lighting media did.

I was surprised... When I did the same thing a year earlier with ECO POS made from leftover pasta, everyone published the press release... I mean everyone and everywhere.

I started analyzing this. And finally, I understood!

Even though the press releases for the interior design industry were written differently, I still dedicated a lot of space to 3D printing technology.

When writing it, I assumed that describing us as a company originating from the AM industry, along with all our previous achievements, would be important. That collaboration with the most important material suppliers would be important.

Well, it wasn't. For the interior design and lighting industry, we were abstract. Like from another planet.

I kept thinking about it, and that’s how the seed of the first law of the AM market was planted...

A company identified or perceived as a '3D printing company' will never achieve significant success in any other market than the 3D printing market.

That was April 2023. In September, I added the second law:

A successful company in the 3D printing industry will always be smaller and less profitable than a successful company in another industrial sector.

And at the end of the 2023, when more and more companies in the AM industry began to fall into crisis, the third law:

An increase in the value of the 3D printing market may or may not correspond to an increase in the value of the 3D printing companies that make up that market. Market value and company value are not correlated.

Here you can find the original laws published on 3DPrint.com :

• https://3dprint.com/312472/the-three-market-laws-of-additive-manufacturing-part-1/
• https://3dprint.com/312554/the-three-market-laws-of-additive-manufacturing/

Here is their unified version:

And here is my PDF presentation with the key points.

Summary of the most important events in the history of the 3D printing industry published last week:

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