ROCK HILL, S.C. - 3D Systems (NYSE:DDD) has unveiled a strategic expansion in the digital dentistry market with a comprehensive portfolio covering alignment, protection, repair, and replacement of teeth. The company announced a landmark multi-year contract, estimated to be worth nearly a quarter-billion dollars through 2025, to support the production of clear aligners.
The new contract underscores 3D Systems' role as a principal supplier of 3D printing technology in the orthodontics space, where it currently facilitates the creation of about one million patient-specific aligners daily. This expansion sets the stage for the company's further growth in the dental sector, which includes the upcoming introduction of a direct printing technology for clear aligners, expected to launch by late 2025.
Further diversifying its offerings, 3D Systems is also advancing into the production of night guards, addressing the needs of those suffering from nocturnal teeth grinding and sleep-related disorders. Additionally, the company is pursuing regulatory clearances for its innovative multi-material, single-piece dentures that promise a blend of durability and aesthetics.
3D Systems' CEO, Dr. Jeffrey Graves, expressed confidence in the company's position to lead the acceleration of additive manufacturing adoption in dental applications. He highlighted the company's commitment to delivering new, high-volume, custom dental solutions, leveraging its integrated materials, hardware, and software development capabilities.
The company anticipates FDA clearance for its denture solution in the second half of 2024, with rapid commercialization to follow. This milestone aligns with its vision to offer the most comprehensive range of 3D printing solutions to dental laboratories and practitioners globally.
3D Systems has been a pioneer in digital dentistry, with decades of experience and the largest portfolio of dental 3D printing materials, serving over one million patients each day. The company's technology is celebrated for enhancing production efficiency and reducing material waste, leading to faster production times and improved patient experiences.
Vantage Market Research estimates the global dental 3D printing market to reach $14.6 billion by 2032. As 3D Systems continues to expand its offerings and partnerships, it aims to encompass all major patient applications, from night guards to dentures, and direct-printed clear aligners.
InvestingPro Insights
As 3D Systems (NYSE:DDD) positions itself for a stronger foothold in the digital dentistry market, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, the company's market capitalization stands at $462.32 million, reflecting its current valuation in the market. Despite the potential for growth in the dental sector, 3D Systems is grappling with challenges, as evidenced by a negative P/E ratio of -1.2 and an adjusted P/E ratio for the last twelve months as of Q4 2023 of -4.48, suggesting that the company is not currently generating profits relative to its share price.
The revenue for 3D Systems over the last twelve months as of Q4 2023 was reported at $488.07 million, with a notable gross profit margin of 40.73%. However, the company's revenue growth has declined by 9.29% over the same period, and its operating income margin stood at -21.11%, indicating operational challenges.
Investors should consider the InvestingPro Tips that highlight key aspects of the company's financial performance and stock behavior. Analysts have revised their earnings downwards for the upcoming period, which could be a cause for concern. Additionally, the stock price has been quite volatile and is trading near its 52-week low, which might suggest a potential entry point for value investors or caution for those averse to risk. Notably, 3D Systems does not pay a dividend, which may influence the investment decisions of income-focused shareholders.
For those interested in a deeper analysis, InvestingPro offers an additional 13 tips for 3D Systems, providing a more comprehensive view of the company's financial standing and market expectations. To explore these insights further, visit InvestingPro's 3D Systems page and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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