3D Systems Corporation (NYSE:DDD) recently announced its planned CFO transition, which many experts believe could be a painful process. However, a report from RBC Capital Markets on March 31, 2014 contends that the transition will be “relatively seamless” considering the long time-frame associated with the transition. RBC analysts Amit Daryanani, Karl Ackerman and Mitch Steves had a conversation with the current CFO, Damon Gregoire.
According to the analysts, the primary reasons for the Mr. Gregoire’s decision are “personal in nature and completely understandable.”
A smooth transition
Yesterday, 3D Systems announced that current CFO Damon Gregoire will be transitioning out to take over the role of EVP of M&A. Mr. Gregoire will continue to hold the post until the company finds a suitable replacement. Analysts believe the transition news is sudden, but is “amicable.” Gregoire is making the transition due to personal matters, which is in contrast to the general belief that underlying trends at 3D Systems are the factors responsible.
3D Systems Corporation (NYSE:DDD) revealed that Gregoire will remain the head of M&A through December 31, 2015, after which he will retire from the company, but will remain a non-employee consultant through December 31, 2016. The analysts believe the most important issue is that he will remain the CFO until a successor is located; this makes analysts feel that the transition will be smooth.
3D Systems expected to maintain financial and operational discipline
Mr. Gregoire, who has been the CFO of 3D Systems since 2007, before joining 3D Systems held financial positions with Infor Global Solutions and Paymentech. After speaking with the management, analysts feel that Mr. Gregoire’s decision is not due to the underlying trends at 3D Systems; instead, the decision is more personal in nature to attend personal/family matters. 3D Systems, which just completed its fiscal year, appears to be in much stable financial health than it was 2-3 years ago, therefore, the decision to transition out of the CFO role has come at a relatively easier time for Mr. Gregoire.
Analysts expect 3D Systems Corporation (NYSE:DDD) to maintain its financial and operational discipline going forward. Overall, the analysts feel that the transition is not “reflective of any fundamental or perceived concerns at 3D Systems.”
RBC analysts have reiterated the Outperform rating on 3D Systems Corporation (NYSE:DDD) with a price target of $96.