3D Systems shares rallied 2.41% to $23.34 in intraday trading Tuesday, after having risen close to 6% on Monday. The stock skyrocketed after the 3D printing company announced that it had signed an R&D agreement with the Naval Sea Systems Command’s (NAVSEA). The two will jointly develop and evaluate 3D printing technology and materials for military uses.
The Rock Hill-based company said it would help the Navy fulfill “a number of strategic initiatives” by leveraging its metal printers and polymer materials. The Navy is accelerating adoption of 3D printing through their Print-the-Fleet initiative. Jennifer Wolk, the additive manufacturing lead at Naval Surface Warfare Center Carderock Division (NSWCCD), said that additive manufacturing holds great promise for supporting the Naval Sea Systems components.
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But a lot needs to be done to ensure that 3D printing can be qualified for safe, effective and repeatable use. Ships and soldiers are mostly in remote regions during military operations. So, components may not be easily accessible. That’s where 3D Systems can help the Navy by 3D printing components that break down during operations.
3D Systems names new CFO
The agreement gave 3D Systems stock some breathing space. Shares of the company have declined more than 52% in the last 12 months. Earlier this month, the company reported disappointing first-quarter results. 3D Systems’ Q1 revenues came in at $160.7 million with 5 cents a share in non-GAAP earnings. However, its gross margins improved QoQ to 49.1% in March quarter. Revenue from its consumer segment rose 169% YoY.
On May 15th, the company announced that its chief financial officer Ted Hull had left 3D Systems “to meet company needs and pursue personal interests. Hull had joined 3D Systems in November 2014. The company has named David Styka as its new CFO. Styka joined 3D Systems in January from Family Dollar Stores.
3D Systems shares were up 2.24% to $32.30 at 11:47 AM EDT on Tuesday.