DDD Stock Price Increased 104.27%: Why It Happened

By Amit Chowdhry ● Updated January 10, 2021
  • The stock price of 3D Systems Corporation (NYSE: DDD) increased by 104.27% as it went from a previous close of $11.24 to $22.96 today. This is why it happened.

The stock price of 3D Systems Corporation (NYSE: DDD) increased by 104.27% as it went from a previous close of $11.24 to $22.96 today. One of the biggest triggers for the stock price increase has to do with an announcement by the company about the sale of its Cimatron and GibbsCAM businesses and the financial results of its fourth quarter of 2020.

3D Systems has completed the sale of its Cimatron and GibbsCAM software businesses to a subsidiary of ST Acquisition Co (an affiliate of Battery Ventures) on January 1, 2021, which resulted in purchase price proceeds of about $64.2 million — after certain adjustments and excluding $8.9 million of cash amounts transferred to the buyer.

And using a portion of the proceeds from the sale, the company paid off approximately $21 million of outstanding balances under its senior secured term loan facility. With the paydown of the term loan, 3D Systems is now free of any outstanding debt but continues to have availability under its senior secured revolving credit facility — which remains fully undrawn at this point. And 3D Systems also terminated the previously announced at-the-market equity program under which no shares of common stock were sold during the fourth quarter of 2020.

3D Systems is also providing preliminary financial data for the quarter ended December 31, 2020. 3D Systems is now expecting revenue for Q4 2020 to be in the range of $170 million to $176 million and Q4 non-GAAP operating income to be in the range of $11 million to $19 million. The GAAP operating (loss) income for the fourth quarter is expected to be somewhere between $(8.6) million to $0.5 million. 

KEY QUOTES:

“In the summer of 2020, we laid out a four-stage plan to deliver increased value to our customers and shareholders. This plan included: reorganization into two business units, Healthcare and Industrial Solutions; restructuring of our operations to gain efficiencies; divesting of non-core assets; and investing for accelerated, profitable organic growth. We are pleased to now see significant progress from these efforts, as reflected in accelerated top-line growth and rapidly strengthening operating margins. Our Team’s ability to deliver over 20% consecutive-quarter revenue growth in both business units, while executing large scale restructuring, was particularly gratifying to see. This was even more impressive when viewed with a backdrop of continuing headwinds from the COVID virus, which impacted our operations and those of our customers. Having surpassed our prior year, pre-COVID revenue performance in Q4, and with continued strong focus on operational execution, we are excited about the trajectory we are on as we enter the new year.”

“The divestiture of Cimatron and GibbsCAM, which were businesses focused on subtractive technologies, was an important step in our plans to refocus our company on our core mission – ‘to be the leader in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products.’ These divestitures strengthened our balance sheet, enabling us to both pay off our debt and terminate the ATM Program much earlier than originally planned.”

“With the benefits of our organizational alignment, our technology and application leadership, and our relentless focus on operational execution, we are more optimistic than ever about the exciting future we see ahead in 2021 and beyond.”

— Dr. Jeffrey Graves, President and CEO of 3D Systems