3D printing service supplier Shapeways is ready to public sale off $5 million of its {hardware} from industrial 3D printer producer Desktop Metallic.
The net public sale will function a catalog of steel 3D printing tools that Shapeways had beforehand been utilizing in its service bureau providing. This {hardware} consists of Desktop Metallic P1 Manufacturing System 3D printers, Store System binder jet 3D printers, BMD 3D printers, powder stations, powder blenders, sintering furnaces, and drying ovens.
Heritage International Companions (HGP) is internet hosting the public sale, which can happen between 26-27 February. That is the second public sale from Shapeways, with the corporate having already listed $4 million value of Desktop Metallic 3D printing expertise at a HGP public sale in October 2023.
Shapeways’ $605M SPAC deal
Based as a spin-off of Phillips in 2007, Shapeways went public in 2021 through a merger with Particular Function Acquisition Firm (SPAC) Galileo Acquisition Corp (GLEO). This deal valued Shapeways at $410 million, and generated $195 million in web proceeds to the corporate, giving the enterprise a complete fairness worth of $605 million.
Following the completion of the Shapeways SPAC deal, the corporate projected fast annual progress of 95% between FY 2021 and FY 2022. The agency additionally anticipated to fulfill a pre-tax earnings goal of $107 million by 2025, and projected a income of $150 million in FY 2023, rising to $250 million in FY 2024.
This monetary outlook appeared optimistic on the time, with Shapeways having solely generated $31.8 million and $44 million in FY 2020 and FY 2021, respectively. What’s extra, the corporate skilled a 5% YoY income decline between FY 2019 and FY 2020, and reported web losses of $7 million in 2019 and $3 million throughout 2020.
Nonetheless, Shapeways emphasised a agency perception in its progress potential, with a spokesperson telling 3D Printing Business in 2021 that the corporate was “poised for large progress and innovation.”
Has Shapeways met progress expectations?
Within the years following Shapeways’ SPAC deal, It’s clear that the Shapeways’ monetary efficiency has not lived as much as the hype.
In its newest Q3 2023 numbers from November 2023, Shapeways generated whole income of simply $8.4 million and $3.4 million in gross revenue. Furthermore, a web lack of $19.4 million was reported, up 198.5% from a lack of $6.5 million in Q3 2022.
Opposite to the $150 million income projected in 2021, the corporate now expects FY 2023 income to return in at between $34.3 million and $35 million. At finest, this represents a 76.7% lower from the unique expectations. In FY 2022, the corporate achieved whole income of $33.2 million, and a web lack of $20.2 million.
Shapeways’ share worth hasn’t fared any higher, falling from a excessive of $83.60 USD per share on 11 January 2021, to only $1.94 on February 2nd, 2024.
As such, Shapeways is now actively pursuing a lot of price discount measures, together with a 15% discount of Shapeways’ whole international workforce. The corporate has additionally introduced a discount of recent hires, and is reducing non-critical capital and discretionary working bills.
It was additionally not too long ago introduced that Shapeways is working with advisors to think about “strategic options.” This will embody a merger, a enterprise mixture, a capital elevate or different strategic transaction, and a sale of a fabric portion of the corporate’s property. Shapeways’ newest $5 million expertise public sale represents the latter of those options.
Promoting off 3D printing property
Shapeways shouldn’t be the one firm to announce a 3D printing {hardware} public sale. Arevo introduced the February 2024 public sale of ABB IRB 4600 Robots, 3D Printers, SuperStrata City Bikes, Chillers, and IPG Diode Laser Modules.
Arevo began life as a promising enterprise specializing in the sale of its AQUA 3D printers and the automated manufacturing of steady carbon fiber composite constructions. The corporate then shifted focus to the full-time manufacturing of its SuperStrata bikes. These bikes had been marketed as being the “World’s first custom-fit, unibody bicycle body 3D-printed in steady carbon fiber composite.”
Arevo Bike gross sales started in 2020. Regardless of elevating $70 million in B Bridge, B1, B2, C, and crowdfunding, Arevo has now ceased operations, fulfilling 96% of its crowdfunded bike orders.
Elsewhere, in December 2022 it was introduced that the property of bankrupt 3D printing bureau Quick Radius could be bought by product design and manufacturing service supplier SyBridge Applied sciences.
Established in 2017, Quick Radius agreed to a $1.4 billion merger with SPAC ECP Environmental Progress Alternatives in July 2021. Following the deal, which valued the mixed agency at $995 million, setting a income goal of $635 million by 2025.
Nonetheless, Quick Radius filed for chapter simply 16 months later, citing “turbulence within the capital markets which severely hampered the corporate’s capacity to arrange the required capital construction.” SyBridge subsequently acquired most of Quick Radius’ 3D printing property in a deal value round $15.9 million.
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Featured picture reveals a Shapeways signal from inside its New York warehouse. Photograph through Gizmodo.
