Desktop Metal Intensifies Cost Reduction Plan and Ongoing Strategic Business Review to Accelerate Path to Profitability
24 Janeiro 2024 - 10:00AM
Business Wire
Latest cost-saving program anticipates additional annualized
cost savings of $50 million, with the majority of those savings to
be realized by the end of this month
Desktop Metal, Inc. (NYSE: DM), a global leader in Additive
Manufacturing 2.0 technologies for mass production, today announced
an additional $50 million cost-reduction plan that includes a 20%
workforce reduction designed to align its cost structure to current
market dynamics.
The effort is part of a broader strategic business review and
other actions, including continued consolidation of facilities and
product rationalization, aimed at accelerating DM’s path to
profitability in the midst of a downturn in the additive
manufacturing industry.
“The cost-reduction plans announced today, in addition to the
$100 million in cost reductions realized in 2023, will help us
generate positive cash flow in light of a softer demand
environment,” said Ric Fulop, Founder and CEO of Desktop Metal. “We
are committed to getting profitable during this challenging period.
The vast majority of the cuts will be completed this quarter,
resulting in sequential cost reductions across the first half of
2024.
“While our industry is working through a challenging period,
Desktop Metal’s commitment to its Additive Manufacturing 2.0 vision
has not changed. We continue to have a positive long-term outlook
for this industry as it transitions to mass production.”
Desktop Metal is notifying U.S.-based employees impacted by the
cuts today. The Company is continuing to review international
workforce changes, the timing of which will vary according to local
regulatory requirements.
This latest action is expected to result in pre-tax
restructuring charges of $24.3 million to $31.5 million. The
majority of those estimated charges are non-cash, with an estimated
$5.3 million to $7.5 million of the restructuring charges coming
from cash reserves.
DM continues to invest in products and operations in line with
near-term revenue generation, positioning the company to achieve
its long-term financial goal of sustainable profitability.
The Company will provide further details about this
cost-reduction effort in its regulatory filings and end-of-year
earnings release and conference call, which is expected to be
executed by the end of March 2024.
About Desktop Metal
Desktop Metal (NYSE:DM) is driving Additive Manufacturing 2.0, a
new era of on-demand, digital mass production of industrial,
medical, and consumer products. Our innovative 3D printers,
materials, and software deliver the speed, cost, and part quality
required for this transformation. We’re the original inventors and
world leaders of the 3D printing methods we believe will empower
this shift, binder jetting and digital light processing. Today, our
systems print metal, polymer, sand and other ceramics, as well as
foam and recycled wood. Manufacturers use our technology worldwide
to save time and money, reduce waste, increase flexibility, and
produce designs that solve the world’s toughest problems and enable
once-impossible innovations. Learn more about Desktop Metal and our
#TeamDM brands at www.desktopmetal.com.
Forward-looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements about Desktop Metal’s strategic integration and cost
savings initiatives, expected restructuring charges, anticipated
cost savings, long-term growth, market share, liquidity and
profitability, are forward-looking statements. Forward-looking
statements generally are identified by the words “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this document, including but not
limited to, the risks and uncertainties set forth in Desktop Metal,
Inc.'s filings with the U.S. Securities and Exchange Commission.
There is no guarantee Desktop Metal will achieve the cost savings
it expects. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Desktop Metal, Inc. assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240124837079/en/
Investor Relations: (857) 504-1084 DesktopMetalIR@icrinc.com
Media Relations: Sarah Webster sarahwebster@desktopmetal.com
(313) 715-6988
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