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Stratasys' MakerBot unit outsourcing 3D printer manufacturing to Jabil

Apr. 25, 2016 7:34 PM ETJabil Inc. (JBL) StockJBL, SSYSBy: Eric Jhonsa, SA News Editor2 Comments
  • Contract manufacturer Jabil (NYSE:JBL) will now handle the production of MakerBot's desktop 3D printers. MakerBot will shut down its Brooklyn manufacturing ops and lay off an undisclosed number of workers. Other MakerBot teams will remain in Brooklyn.
  • MakerBot CEO Jonathan Jaglom: "It’s a specific, painful decision in the sense that we’re going to have to let some people go, but it’s captured over a much broader strategic decision ... We need to be able to manufacture printers on a much higher volume in the coming years."
  • MakerBot has been the subject of multiple layoffs and Stratasys (NASDAQ:SSYS)  write-downs since Stratasys bought the company for over $400M in 2013. However, it’s still a top player in a market for desktop 3D printers that’s outgrowing the broader 3D printing/additive manufacturing market. Research firm Wohlers recently estimated desktop 3D printer shipments rose nearly 70% in 2015 to 278,385.
  • Stratasys has been looking for ways to cut costs amid a 3D printing industry downturn driven by excess capacity at industrial printer buyers. GAAP operating expenses rose only 4% Y/Y in Q4.

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