A：To adjust its cost structure while maintaining core RD investments for long-term growth, the company has taken aggressive actions, including the rationalization of non-core assets. This effort involved the sale of the non-core asset, OTA at Edd Expert, which closed at the end of October. The company expects the financial impact of this disposition to be approximately $Ly Ly million in revenue and Ed Million on gross margin in the fourth quarter.

A：During the quarter, the company launched new printer platforms based on its expertise in photopolymer jetting technology. For the industrial segment, the MJP 300 W plus was introduced at the Istanbul Jewelry Show in early October, which prints intricate wax patterns for precious metal jewelry, improving productivity and reducing waste. In the dental market, the full commercial release of the next Dent Jet Adventure solution was announced for the US market, offering a faster, more cost-effective, and highly scalable alternative to traditional denture manufacturing.

A：The significance of the MJP 300 W plus in the industrial segment is that it prints extremely intricate wax patterns used for casting precious metal jewelry, improving productivity by 50% and reducing gold, silver, or platinum waste by 40%. The company views the global jewelry market as a rapidly transforming digital manufacturing ecosystem where their expertise in jetting technology, including both the printer and the custom wax materials, serves a growing demand for digital manufacturing.

A：The company is addressing the dental market with its new printer platform, the Dent Jet Adventure, which offers a first-to-market solution for jetted monolithic dentures. This technology utilizes multiple materials in a single printing process to deliver a durable, long-wearing, aesthetically pleasing prosthetic to patients, providing a faster, more cost-effective, and highly scalable alternative to traditional denture manufacturing. The company has placed these printers with leading US dental labs and is building backlog for the fourth quarter, with plans to significantly grow the market as it transitions to 3D printing.

A：The core area of focus for the company's healthcare business is the medtech segment, which includes personalized health services, point of care applications, medical implants, and traditional printer and consumable sales to medical OEMs.

A：The new biocompatible material, Poly Ether Ether Ketone (PEEK), is significant due to its similar properties to native human bones and its ability to be printed quickly and economically. It is being used in various medical applications, such as reconstruction of the face and skull from defects or injuries, addressing post-cancer related surgical procedures, and trauma cases.

A：Recent milestones include the establishment of the National Additive Manufacturing Innovation Company (NAMI) in 2022 through a partnership with the Saudi Arabian Industrial Investments Company. The company has also announced a strategic investment by the Saudi Electric Company (SEC) in NAMI and a framework agreement between NAMI and the Modern Isotopes Factory for manufacturing components for non-destructive testing devices used in pipelines and weldment inspection.

A：Lockheed Martin has announced a collaboration with NAMI to develop critical military and aerospace components using 3D Systems' direct metal printing technology. This collaboration aims to establish local capabilities for these applications.

A：The key areas of investment in AI infrastructure where the company participates include semiconductor chip manufacturing, data centers, and gas turbine engines used in power generation for data centers. These markets are beginning to make significant investments, and the company has been developing applications in anticipation of increasing demand.

A：Phylla Nordstrom is the new interim CFO. Her background is in finance and accounting, and she has held various roles in these areas. Most recently, she led audit and risk management teams at NTS Systems and Pricewaterhousecoopers, focusing on advancing strategic priorities and operational excellence.

A：The divestiture of the geomagic software business on April 1 of that year resulted in the reported results being adjusted to exclude the geomagic business for an apples-to-apples comparison across periods.

A：The industrial solutions revenue declined 16% year over year to $48 million, with a further 4.5% decrease excluding geomagic. Healthcare solutions revenue decreased 22% from the prior year to $43 million, largely due to lower sales in dental.

A：The company aims to deliver over $50 million in annualized savings by the end of the year and to continue reducing expenses through the end of the year, targeting fourth quarter operating expenses to be marginally below the current quarter.

A：The non GAAP loss per share was $8 cents, which is an improvement from $12 cents in the prior year period.

A：The company closed the quarter with total cash of $114 million, consisting of $95 million in cash and cash equivalents and $19 million in restricted cash. Total debt, net of deferred financing costs, was $123 million, with $35 million due in the fourth quarter of 2026 and the remaining balance due in 2030.

A：The company expects gross margin to be flat quarter over quarter in the next quarter, with the benefit of increased volumes from new products being offset by the mix effect in the factory. The impact of tariffs is expected to remain constant.

A：The company has taken out a lot of the organizational capacity actions already, with the majority of the actions completed. However, there is still a little bit left to do, and the focus is on closing out the remaining actions at the first part of next year.

A：Opex is expected to continue climbing through the first half of 2026, with the exact timing dependent on achieving total cost savings objectives. Revenue is necessary to achieve profitability and positive cash flow, and the team is working on the 2026 budget to determine the required Opex levels for a given revenue outlook.

A：The impact of exiting facilities will be reflected in Opex over the next few quarters once these facilities are subleased or have their leases expire. Currently, these facilities are on the market, and the timing is the frustrating part of the process.

A：Sales volume and gross margin significantly impact Opex, which is dependent on these factors. The company is selling many high materials used printers and focusing new product developments on jetting solutions and large SLA and SLS printers that consume a lot of materials. This leads to a lag in gross margin initially, but as materials are pulled through, Opex efficiency and gross margin are expected to improve.

A：The original cost takeout target was $600 million in a somewhat normalized but not great environment. Positive cash flow profitability was expected with adjusted gross margin estimates. Sales are picking up in Q4, which is positive, but the final impact on reaching the cost takeout target depends on the volume and mix of increased sales.

A：The company has new partnerships with Lockheed Martin worldwide, including the US, where they are a major defense contractor. In the Middle East, especially Saudi Arabia, there's a significant consumer demand for American defense products, which drives local innovation and manufacturing. This joint venture benefits both parties, especially due to local sourcing requirements, and involves specific part types related to aircraft and missile systems.

A：The company competes with other defense contractors in the US, but building and proving relationships and technology take time. However, the company is uniquely positioned to serve defense-related needs with a focus on specific systems and components such as engines and rocket motors.

A：The company has been able to throttle back on CapEx because of past significant investments, and the nature of their manufacturing operations is not very capital intensive. They expect to significantly reduce CapEx over the next couple of years below the long-term average of 4% of sales, possibly to less than half of that benchmark due to their existing infrastructure and manufacturing processes.

A：The stabilization of the dental business is driven by several revenue streams, such as consistent, long-term approvals for materials used in repairing teeth. The more volatile revenue stream is the line revenue stream, which can fluctuate based on economic conditions and consumer behavior. Monolithic dentures present a positive opportunity for revenue growth, but their impact is influenced by these external factors and is subject to market and consumer trends.

A：The market for printing technology and materials has shown volatility, declining in the last couple of quarters but is now stabilizing with respect to end product sales.

A：Digital dentistry is transforming the production of dentures from being largely handmade to utilizing 3D printing technology. This change allows for the assembly of dentures to be done in minutes and hours instead of days and significantly improves the product's aesthetics and durability while meeting or exceeding current product standards.

A：Full regulatory approval is needed in the United States, and the process is also underway in Europe. The technology must be accepted and phased in by dental labs, which is a slow process but essential for ensuring the technology's success in the market.

A：The company is seeking regulatory approval in Central and South America, in addition to the United States and Europe. The company has yet to encounter any product that does not work well in the markets they serve.

A：The aligner product is very well accepted in the market and is the largest application for 3D printing, with over a million units produced daily. This indicates strong demand for the materials used in aligners and a significant investment in printer technology, which benefits the company's revenue.

A：The revenue from the new denture product is expected to be a more stable and growing revenue stream, especially due to the aging population and the demand for teeth replacement. The revenue could potentially become a significant part of the company's dental revenue stream.

A：Aligners are considered a discretionary purchase for many, although their applications are expanding beyond cosmetics to include functional adjustments of teeth. In contrast, dentures are viewed as an essential item, particularly in developed countries and increasingly in non-developed countries, making them a more stable and growing revenue stream for the company.