Sigma Labs Expands 3D Printing Software Solution, Focusing on Partnerships and Executive Structure for Growth
As 3D printing technologies continue to spread across the globe, management solutions are a major concern for those operations adopting additive manufacturing into their workflow. Sigma Labs has been at the fore of software solutions with their well-known PrintRite3D offering, frequently expanding its reach with additional partnerships and agreements set to increase its availability. Just a few weeks ago, Sigma Labs signed a new US-based partnership and saw some executive restructuring to keep the technology in focus. The company has announced another step forward for PrintRite3D on the world stage, signing an agreement with Taiwan-based Digital-CAN Tech Co., Ltd.
The newly penned agreement allows for Digital-CAN to become a non-exclusive sales agent for Sigma Labs in Taiwan. For its part, Digital-CAN is heralded as an operation at the fore of additive manufacturing in that country, offering more than a decade of industrial additive manufacturing know-how. The company has seen extended operations with interest in projects including 4D printing technology. Digital-CAN is AS9100- and ISO13485-certified, serving as a significant one-stop-shop for additive manufacturing in Taiwan. The company is an agent/distributor of technology for EOS Additive Manufacturing Facilities as well as for Trumpf’s Laser Metal Deposition Technology. The deal with Sigma Labs allows for a commission for any revenue generated by customers Digital-CAN identifies.
Asia is in focus as a business opportunity for Sigma Labs. The company tells us that it is interested in raising its profile in this market, as 3D printing continues to globalize — and as Asian markets continue to quickly adopt additive manufacturing technologies.
“We are very pleased to expand our Asian market presence with sales representation from Digital-CAN, a leader in the Additive Manufacturing Industry in Taiwan. Taiwan is among a growing array of countries that have embraced AM across Asia and we believe that Digital-CAN is the right agent in that region to help fulfill our expansive vision. We look forward to working with them to drive the value of Sigma Labs’ solutions capabilities into their diverse markets and industry channels,” Ron Fisher, VP of Business Development, Sigma Labs, said.
“Many in the industry see the Asian market as lagging the US and European markets. Sigma Labs has seen a significant uptick in interest from Asia and we believe the rate of technology development and adoption from the Asia is advancing at a breathtaking pace. Sigma Labs is positioning itself to capitalize on this rapid rate of growth of AM production by expanding its sales and marketing channels in Taiwan, China, Singapore, Korea and other Asian countries,” Fisher tells 3DPrint.com.
The partnership with Digital-CAN comes on the heels of Sigma Labs’ recently-announced Q2 financial results, released on August 14th for the quarter ending June 30th. The results show a strong uptick in reported revenues from last year’s Q2, based largely on some major contracts signed in 2017.
“Revenue for the three months ended June 30, 2017, was $290,553, as compared to revenue of $93,824 during the same period in 2016. The increase in revenue was primarily due to new contracts in 2017, including Honeywell DARPA Phase III, Aerojet Rocketdyne, and Solar Turbines, Pratt and Whitney, and Woodward which accounted for the majority of the $196,729 increase in revenues when comparing Q2 2017 to Q2 2016. In addition, the Q2 2016 revenues were lower due to the completion of the GEA America Makes Program in Q1 2016, providing no revenues from that contract in Q2 2016,” the company reports.
Looking at a six-month period rather than the three-month quarter, however, revenues for 2017 were lower than those reported during the first half of 2016, with an overall $11,523 decrease ($440,756 compared to $452,279). The GEA America Makes Program provided three months of revenue in 2016 prior to its completion. The new contracts noted above “made up for the majority of the reduction” following that contract completion. The agreement with Woodward was announced on August 10th as that company’s Aircraft Turbine Systems group installed PrintRite3D INSPECT v 2.0.
“We are delighted to be expanding our working relationship with Woodward who continues to assimilate in-process monitoring for metal AM into their strategy to ensure a stable supply chain to manage production volume growth,” Mark Cola, President and CTO of Sigma Labs, said of that agreement.
The six-month period saw operations financed largely from “PrintRite3D system sales, DARPA Phase III, Aerojet Rocketdyne and Solar Turbines programs, engineering consulting services provided to third parties, and through sales of the Company’s common stock and debt securities,” the company states.Q2 2017 saw an increase of $113,496 in General and Administrative expenses, due to higher legal fees and increases in interest and finance costs. Payroll additionally rose with increased hires. R&D saw a substantial increase for Q2 2017 over Q2 2016, at $118,853 compared to $11,907, as nearly $107K higher R&D costs arose from “continued improvement and development” work done in software and technology. Net losses rose compared to Q2 2016, largely based on the rise in expenses but partially offset by gross profit increases.
To see to future growth, Sigma Labs is prioritizing expansion and reorganization. Interim CEO John Rice explains that the company is looking to the idea of acquisitions as it continues to examine complementary technologies. The company itself is looking as well to its leadership structure to ensure that the right people are in place to ensure optimal operation.
“We are implementing our strategic double down on both Sigma Labs’ technology and also on our ongoing efforts to grow Sigma Labs into a robust digital 3D ecosystem by seeking to identify compatible businesses to potentially acquire that will be synergistic with Sigma Labs’ technology and business, although there are currently no agreements with respect to the acquisition by the Company of any third party, and there is no assurance than any acquisition will be consummated,” said Rice.
“In July and early August 2017, we changed our management lineup to add more capacity to implement our strategy. We believe that we have excellent technology and are supported by an excellent team of technologists. We also believe that we have accomplished a hard-won understanding of a rapidly changing market place, and that our early adopter and OEM strategies are gaining traction. We know that we need to perform better operationally, and are reconstituting senior management and the Board to focus on three very defined targets: (1) product development, sales, and support; (2) business operations; and (3) expansion through the exploration of various business opportunities.”
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