Additive manufacturing company 3D Metalforge (ASX: 3MF) closed out the June quarter (Q2 2021) with 23% growth in revenue, compared to the prior March period (Q1 2021), with the higher revenue underpinned by continued positive sales momentum.
For the three-months ending June 2021, 3D Metalforge achieved $266,000 in revenue with total income for the period reaching $352,000 – up 20% on Q1 2021.
This helped boost the company’s cash reserves and it ended the quarter with $6.1 million in the bank
3D Metalforge said the cash in the bank provided a strong base as it heads into the second half of full year 2021 (FY 2021) and continue its commercialisation activities across Australia, Singapore and the United States.
“We are more than just a 3D printing company as we are one of the few additive manufacturing companies that offers a full range of additive manufacturing services to clients: from design, to print and digital cloud storage,” 3D Metalforge managing director Matthew Waterhouse said.
He pointed out 3D Metalforge was also one of the few additive manufacturing companies that had generated consecutive year on year revenue growth over the last four years.
“The June quarter continues this trend, and it was a period of intense activity for 3D Metalforge.”
“The progress the team has made is remarkable, with our technology commissioned to be used at the world’s first on-site additive manufacturing facility for port applications, developed in conjunction with PSA Corporation – allowing the provision of additive manufacturing services closer to the customer’s point of use.”
Port contract with PSA Corporation
3D Metalforge’s work during the June and previous quarters culminated in it securing a 15-month contract from PSA Corporation last week.
The contract is valued at $387,000 with 3D Metalforge to use the new PSA facility at the port of Singapore.
At the facility, 3D Metalforge will use its technology to speed up the identification, design and production of port equipment parts at a lower cost and reduced environmental impact than traditional manufacturing.
3D Metalforge had collaborated with PSA for two years on development and commissioning of the new facility.
This key achievement was made while 3D Metalforge accelerated its US expansion efforts.
As part of this, 3D Metalforge established a 20,000 square foot additive manufacturing facility in Houston, which is the global centre for the oil and gas industry.
The US is a critical target for 3D Metalforge, with North America being the world’s largest market for additive manufacturing – forecast to account for 36% of all global additive manufacturing revenue by 2025.
Adding to its global expansion efforts, 3D Metalforge became a qualified manufacturing partner to Flowserve, which is one of the world’s largest pump, valve and seal producers.
Flowserve has a $5.5 billion market cap and is listed on the New York Stock Exchange.
Under the deal, 3D Metalforge recently printed 10 closed impellers for one of Flowserve’s customers, which resulted in a 50% reduction in lead time compared to traditional casting.
Continued technology development
While focused on commercialisation efforts, 3D Metalforge has also progressed its products and technology.
The June quarter saw the company test and commission its latest Hybrid wire arc printer.
This technology can print multiple parts simultaneously and is capable of faster, larger format metal printing parts up to 1.5m.
According to 3D Metalforge, the latest printer opens up new markets. It will now target oil and gas, maritime, defence and other industrial end-uses that require larger parts.
As the September quarter progresses, 3D Metalforge will focus on deepening its penetration in existing markets via its additive manufacturing centres.
The company will also continue to seek opportunities to embed its technology in client facilities to improve their supply chains and offer a competitive advantage.
Additional technological enhancements will also continue during the September quarter, with the aim of make printing processes more automated, even faster and enable use of new materials.