DDD - 3D Systems Corporation - 2nd Annual Needham Advanced Industrial Technologies Conference Transcript

    Company Name:3D Systems Corporation
    Event Title:2nd Annual Needham Advanced Industrial Technologies Conference Transcript
    Event Date:13-Aug-2013
    Event Time:10:00 AM ET


    Avi N. Reichental

    President and Chief Executive Officer
    ...focus first and foremost on accelerating 3D printer adoption through new products and channels, expanding our cloud printing services, growing healthcare, democratization consumer access and reinventing the engineers’ desktop which to us all tie together into making our business model about an integrated platform ecosystems and an awesome user experience.

    And we do it through a great deal of organic R&D but we also think that in the age of exponential thinking if we can invent everything ourselves is kind of a fool's errand and so we decided to also make ourselves much more attractive to other budding inventors and the companies because we have the channel, we have the financial strength, we have the bandwidth to commercialize it sooner than they could.

    With that we have amassed the most comprehensive portfolio and we are systematically democratizing while applying basically Moore's law in terms of continuing to reduce cost and continuing to enhance performance across the entire product line. And we also continue to trust other technologies because we believe that those are critical to success.

    So, we recently closed the acquisition of some 80% of Phenix Systems and we intend to tender for the remaining 20% probably next month. And that gives us unique proprietary capability in ferrous and non-ferrous metals, its granularities in the 6 to 9 microns which allow us to achieve densities that are over 99% of chemically pure metals, and that is going to be a game changer for medical applications implants and aerospace and defense applications. We are excited about that.

    We are continuing to grow the range of our own integrated materials, we have over 100 materials and we believe that the next period will usher in multi-materials, super materials will enhance properties and full color of plastics.

    We are incidentally the only company out there that can print with over 1 million color in a single print. And we believe that all of that is further enhanced and multiplexed by offering our quick parts, cloud printing services which are now delivered from 10 locations around the world and basically serve as customers server capacity in the cloud to multiplex their designs, prototyping, tooling and in many instances outright manufacturing opportunities.

    With all of that we see opportunity to enhance design productivity. And so we have been investing, we've invested over $100 million in the last nine months to 12 months to build our software capabilities, starting with scanning and reverse engineering, inspection and visualization, which is very important, and now taking it a step further and introducing outright voxel CAD modeling capabilities that we think will be paramount to making designs instantly printable.

    We are a global company. We operate out of over 30 locations around the globe, and we believe that we still have opportunities to fill in some gaps in parts of Europe, Latin American, in China which we intend to act on in the coming periods; and we have a very diverse, ethnically generalized and geographically management team that include many proprietors and entrepreneurs that found it attractive to stay with us and to continue to grow with us.

    We believe these numbers come from numbers and so, we have looked at our go-to-market approach in terms of channels, both as direct, sales and multiplexing it through 500 resellers for a growing online presence on cubify and quickparts.com, through online retailers like Staples who started selling online recently; and just this morning Office Depot announced that they've taken our Cube and CubeX. So you can check out their press release. And we have increasingly a growing number of installed retailers including Staples within the last two weeks decided to go from couple of dozen stores to a couple of hundred stores in the next few months and others to follow.

    We have a little bit of surplus apart is the quality and performance and resolution of our output from our industrial grade and professional printers that is unbeatable and untouched today from the functional material that we have that can perform in the most demanding condition including under hood and in aeroplanes and the kind of accuracy that we can achieve and resolution that not only exceeds all other direct competitors, but also outgrows the output of CNC machining and injection molding.

    And the fact that even at giant sizes and we can print parts as large as a car dashboard or a bumper in a single piece, we do not sacrifice any of the defined feature details many that you can’t see with the naked eye. And the fact that we have the largest number of production grade materials applications output and by far the way broadest range of used cases that also includes hundreds of outright manufacturing line applications that are producing tens of millions of parts annually in light of our 24x7 manufacturing operations. We have the accuracy and performance that exceeds as of traditional manufacturing.

    We continue to innovate and we continue to add channels and one of the latest players of innovation is the exclusive multiyear alliance that we signed up with Deloitte. Deloitte is looking at 3D printing as potentially the next era of ERP implementation. Companies now are trying to learn how to implement 3D printing not just into the design cycle but into the entire design to manufacturing cycle.

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