“The move reflects management’s plans to focus its resources and strategic initiatives on near-term opportunities and profitability,” 3DS explained this morning.
While Cubify users were notified last week via email that changes were coming, today’s announcement seals the deal as the $999 Cube 3D printer will no longer be produced, the Cubify portal will close, and all retail items will be discontinued. The CubePro, however, will remain available, as its applications include desktop engineering as well as education and professional purposes.
“In connection with our ongoing review of our business and industry, we believe that the most meaningful opportunities today are in professional and industrial settings, from the product design shop to the operating room to the factory floor. We are focusing our efforts on enabling professionals and companies to improve their designs, transform their workflows, bring innovative products to market and drive new business models,” Andy Johnson, 3DS’ Interim-Chief Executive Officer & Chief Legal Officer, explained.
While the recently introduced Fabricate system for Cube 3D printers seemed to indicate a level of attention to fashion that walked the (Project) Runway, we can only be left to assume at this point that the new platform will be left in the dust with the rest of the Cube and Cubify soon-to-be relics. The remaining inventory of Cube 3D printers will still be sold, and all owners of Cube products will still receive support and, importantly, sale of materials (including the filament cartridges, which are famously, and unpopularly, proprietary), through the main 3DS domain, which will launch a new e-commerce platform.
As focus slides firmly away from the retail side, 3DS will expend its energies on building up the manufacturing side, with industrial applications reigning supreme. It’s no secret that in business the biggest bang for the buck will come from higher-end applications, and 3DS has plenty of that in the work. Back in October, at Inside 3D Printing Santa Clara, 3DS’ Design Director, Scott Summit, presented a keynote exploring the company’s view of “3D Printing Plus,” which brings the technology together in equations such as:
- 3D Printing + Data Visualization = greater information understanding
- 3D Printing + Health Care = improved quality of care
- 3D Printing + 3D Scanning + Health Care = improved medical outcomes
- 3D Printing + Medical Sensing = proactive health care
- 3D Printing + Space Travel = opportunities for long-term life in space
- 3D Printing + Philanthropy = global health challenges addressed
As the company highlighted today:
“Management believes a greater focus on manufacturing applications and delivering new and enhanced manufacturing systems can drive adoption, yield higher returns on investment and increase earnings. As part of this shift away from consumer products, management expects revenue to be impacted by less than 2% and profitability to improve. In addition, management expects to record a charge in the fourth quarter in the range of approximately $19 million to $25 million related primarily to inventory write downs and related purchase commitments.”