3D Systems Corporation (NYSE:DDD) revealed today that it has entered into an agreement for Chief Financial Officer Damon Gregoire to move into a different role. He then plans on leaving the 3D printer maker entirely in 2016.
Gregoire to become M & A chief
According to the regulatory filing, the transition agreement became effective on March 28. It states that 3D Systems Corporation (NYSE:DDD) and Gregoire have mutually agreed that he will continue to serve as senior vice president and CFO until the date when the company hires his successor. At that point, he will transition into the role of executive vice president of mergers and acquisitions.
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Unless the position is terminated earlier by either 3D Systems Corporation (NYSE:DDD) or Gregoire himself, he will serve in that role through the end of 2015. At that time, he plans to retire and then serve as a non-employee consultant through the end of 2016. Under the terms of the agreement, Gregoire will be able to work from “a different geographic location.” He will also be able to “attend to certain family and family-related health matters.
Not a big deal for 3D Systems
Street Insider reports that although Gregoire’s departure does come as a surprise since he is only 44 years old, Deutsche Bank analyst Sherry Scribner sees it as a neutral for the company. She notes that his departure is related to family and health issues. In the past, he has led 3D Systems Corporation (NYSE:DDD) through a number of stock issuances and acquisitions.
As of this writing, shares of 3D Systems Corporation (NYSE:DDD) were relatively flat after falling less than 1%.
Another analyst, Wamsi Mohan of Bank of America Merrill Lynch reiterated the firm’s Underperform rating and lowered their price target on 3D Systems Corporation (NYSE:DDD), although it was unrelated to Gregoire’s departure. The analyst cited margins which underperform consensus target. The analyst trimmed their price target from $60 to $55 a share.