3D Systems Corp (DDD)

[Lonnie Starr]

There's been quite a bit of talk about start ups putting pricing pressure on 3DP, but that's not going to happen, here's why. There are a great variety of materials that can be used, but each material requires a different machine as well as different software. See: http://pics.newsware.com/gc.asp?nm=142720&dt=12890&ky=01FILKUJksZBQ

So, as consumers look at the processes being offered, they will see that some companies (the biggest ones) offer the widest choices of materials, and even better strong support. $DDD also offers after market support, meaning that one can easily swap from machine to machine to use a wider variety of materials without having to sink high front end costs.

Newer, smaller companies won't be able to do that, and because they can't offer stability long term, they're shut out of the profitable BtoB market. Meaning they're going to have extremely long cash burns trying to play catch up. I'd be surprised if $HPQ even bothers entering the fray with their October announcement, because of the complexity of offering a wide array of materials, machines and software, while trying to match the skill sets and expertise that $DDD and @SSYS acquired by M&A.

Making more piper cubs for example is hardly going to put any pricing pressure on Boeing. So it's that kind of game. Then there's this new "miracle material" Graphene that's under study (Google for it) I can imagine a clamor arsing to 3DP that material very soon. Start ups will have no solutions anytime soon for this material. I think the most successful startups will probably be in the area of creating/formulating materials for sale to $DDD and/or $SSYS, rather than trying to sell it themselves, because the machines and software will have to be re-configured. To much for a small startup to do. So it's clear sailing on those competition counts, they don't hold water.