3D Systems shares fell as much as 9.24% to $9.53 on Monday after the company announced that it would discontinue production of its consumer 3D printer Cube. The 3D printing company will continue to sell the existing inventory of Cube printers, but will shut down the consumer platform Cubify.com on January 31, 2016.

3D Systems Corporation Shifting Away From Consumer Products

3D Systems will continue to provide support and materials for Cube customers through a new e-commerce platform on the company’s official corporate website. The Rock Hill-based company said it would discontinue the sale of retail products such as jewelry and phone cases. The move is in line with the management’s plans to focus its resources on near-term opportunities and profitability.

 

CubePro 3D printer sales to continue

The 3D printing company will continue to sell the CubePro 3D printer that was designed for professional, educational, and desktop engineering applications. 3D Systems under its new interim CEO Andy Johnson is going to step up focus on “manufacturing applications and delivering new and enhanced manufacturing systems” to drive adoption, yield higher returns and boost earnings.

The decision to move away from consumer products will impact its revenue by less than 2%, while profitability is set to improve. 3D Systems will also record a charge of $19 million to $25 million in the fourth quarter, related to inventory write-downs and purchase commitments. 3D Systems stock rose to an all-time high of $98 in early 2014, but has lost 89% of its value since then.

3D Systems sees opportunities in professional settings

Interim chief executive Andy Johnson sees the most meaningful opportunities in industrial and professional settings, from the factory floor to the operating room to the product design shop. In October, 3D Systems’ former CEO Avi Reichental resigned amid rising investor pressure. Earlier this month, Stephens analyst Ben Hearnsberger upgraded the stock to an Overweight rating, saying the current valuations present an opportunity to buy the stock cheap.

3D Systems rival Stratasys has also been reorganizing its consumer business. In Q3, Stratasys lowered its earnings outlook. Stratasys will also adjust the book value of MakerBot by $140 million to $180 million. MakerBot is the consumer division of Stratasys, which it acquired in 2013 for $403 million.