3D Systems has announced it will discontinue production of its desktop consumer 3D printer, known as the Cube, effectively exiting the consumer 3D printing market. 3D Systems says the move reflects the plan to refocus its resources and initiatives on near-term opportunities and profitability. The CubePro 3D printer designed for desktop engineering, education and professional applications will continue to be sold. 3D Systems says it will sell the existing inventory of Cube printers and support for already-sold printers will continue. As part of the announcement, 3D Systems’ e-commerce platform, cubify.com, will be closed in January.
The Cube 3D printer is one of the desktop consumer printers that will be discontinued by 3D Systems. (Source: 3D Systems)3D Systems has had a difficult 2015 after it lost its CEO Avi Reichental, had to pay $11.2 million to the co-founder of the company in a lawsuit, and has suffered declining revenues and recent news of layoffs. Given this, restructuring the company with a tighter focus on yielding higher returns on investment and increased earnings by ridding itself of a struggling part of its business is not so shocking.
As a result of the shift away from consumer products, 3D Systems expects revenue to be impacted by less than 2 percent and profitability to improve. The company plans to record a charge in the fourth quarter in the range of about $19 million to $25 million related to inventory write offs and related purchase commitments.
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