DDD
#Sure.
You know, I think for us channel is a very important partner because if you think about global coverage, there is no way we will be able to cover, globally, the opportunities that we have.
So that's the first thing that I want to make sure that I've mentioned.
The second thing that I want to mention is what we need to do is to invest into our channel.
And that's what I've been doing for last six months.
I want to train the channel.
I want to get them excited about the opportunities that we have in front of us.
For example, I've mentioned our MultiJet Printing line with 2500.
We're going to have some very good new products that we will be introducing soon in that particular category, and then channel will be very important for us.
So my view is we need to make sure that we focus on the channel for the opportunities, especially on the prototyping side is very, very important to us.
As far as the direct, yes, I think as we shift to prototyping to the production, there are only going to be few channel partners who are going to have capability to sell the production kind of the solution because it's a solution sale rather than just a printer sale, one.
But two, I think we also need to hire more direct salespeople because to cover that market and really talk about the solutions approach.
And we have understanding of that with our healthcare business.
My view is the way we build up our healthcare business was to really have our direct sales force calling on medical device manufacturers.
So we understand the model and how to sell solution.
What I want to do is replicate that model into the other segments that I've been talking about.
Well, I think ---+ again, we don't disclose specific revenue information of any of our technology platforms.
But I just think that metals is a very big opportunity.
And as I have mentioned about the healthcare vertical, and the approach that we are also taking as a complete solution will really enable us to grow our metals business in 2017.
The other aspect that I talked about, the 320 is a very solid platform, especially with the titanium metal.
And then with having the 3DXpert and a combination of that, I am very, very optimistic that we will be able to grow that business.
I'm not going to worry about whether ---+ what the market growth is because we need to really make sure that we focus on our solution and start growing that business in 2017.
No.
I think that I'm just saying that we are actually ramping that business, especially with 320.
I'm talking more specifically about the 320 product platform.
You bet.
Take care.
Thank you.
I think both of them, because to really upgrade the equipment would be the first priority from the CapEx point of view.
But we also want to invest so that we could be closer to our customers.
Because that business in my view that I need to turn it around with the amount of growth expectation I have for 2017.
Well, as I mentioned, that what we need to do is to really invest into that particular business.
And I really believe the approach that we are taking, there is a quick turnaround part of that business and there is a project-based part of that business.
And I think what we need is invest on both.
We need to invest in our website, we need to make sure that we invest in our go-to-market so that we can capture every opportunity that we can get.
Plus, some of our sites in Europe, they have certain very good capability that I would like to take that capability and put across all our sites for that business.
So my view is, that's the work that we are doing and we will be able to turn that around in 2017.
Well, I think, I always said that this is something that we will do it in 2017 but we are not talking about specific timing.
My view of Figure 4 is we have now already shipped our first customer beta units to a very large industrial customer.
And I think that's a very big checkpoint in my mind.
So that customer is already using the product.
They are very happy with the kind of the contribution it can make to drive really what I was talking about moving from prototyping to production.
So my view is this capability that we have, we already have it now in our customer's hands and we are getting tremendous feedback in terms of how we want to use it to commercialize this particular technology.
The second thing that I can tell you that we are going to continue to show our developments in our upcoming show like AML, RAPID with respect to what we are doing with respect to Figure 4.
The last part is this Figure 4 technology is very important because we can go by each segment and by each use-case and show with the right kind of materials and the right kind of a configuration we will be able to meet these production needs.
And I think having that kind of an approach, which is scalable and configurable, is going to be the key to really winning in the marketplace that I'm talking about.
And I really don't believe that any competitive technology will be able to match what we are doing with Figure 4.
And I think that's going to be the key.
Well, we're not going to specifically talk about it.
But as I said, that I believe our driver for the 2017 is continue to solid growth on software and healthcare.
And then we need to drive our printer revenue growth, especially focus on the production, ramping our metals business, and introduction of Figure 4.
Plus, the on-demand parts business we also need to turn around.
So there are multiple elements and the drivers for the growth that I'm talking about in 2017.
Yes.
Well, I think ---+ my opinion is cost of sales reduction is not a one-time thing.
We got to have that kind of a discipline that every single platform that we develop and introduce there is an opportunity to take the cost out.
So the way I think about this thing is ---+ and this is not a one-time thing ---+ we need [help].
Initially it's a bigger opportunity because there was no focus on cost reduction in this company.
But there needs to be a discipline that every year that we will be able to achieve that.
The other important part that you ought to understand which I really want to focus on is the annuity business model that I talked about.
More and more if our revenue comes from software.
From our materials and from our professional services which are high margin businesses, we are going to have the right kind of a composition in terms of the margin growth.
So I think those are the two key things.
Systematic cost of sales reduction and second thing is the profile for our business model where we are really driving the annuity-based business model.
It is going to be very important for us.
Thank you for joining us today and for your continued support of 3D Systems.
A replay of this webcast will be made available after this call on the Investor Relations section of the website www.3dsystems.com/investor.
Thank you.
