Avi Reichental, who as been at the helm of 3D Systems for over a decade, has stepped down from his position as CEO.
Although the reasons for this sudden departure are unknown, 3D Systems' share price has been in steady decline for some time now. In the middle of the 3D Printing hype boom 3D Systems were trading at a high of $96 in January 2014, as of today the company sits at around $10.5. Though that is around about three times the price of when he took over in 2003, the gradual decline over the past 12 months has been a disappointment.
Under Avi's tenure 3D Systems have been involved in over 50 acquisitions including the likes of Z-Corp, Cimitron, Geomagic, Quickparts, Layerwise. But there have been some unsuccessful acquisitions and legal battles, just this week saw 3D Systems pay an arbitration fee of $11m to a former employee Ronald Barranco whose company, Print3D, was acquired by 3DS in 2011. 3D Systems is to challenge the arbitration award in federal court.
In Avi's place will step interim CEO, Chief Legal Officer, Andrew Johnson while the executive board seek out a new CEO.
Full Press release
3D Systems (NYSE:DDD) announced today that Avi Reichental has stepped down as President and Chief Executive Officer and as a Director of the Company, effective at the close of business on Wednesday, October 28, 2015, by mutual agreement with the Company's Board of Directors.
"I am deeply grateful to have had the opportunity to lead and build this fine company for the past 12 years, and I am excited about its future," said Reichental. The Company also announced that its Board of Directors has established an Executive Management Committee to provide ongoing leadership and to support companywide operations and strategic initiatives. Charles Hull, Co-founder, Director and Chief Technology Officer, will serve as Chairman of the Committee, while Andrew Johnson will serve as Interim President and Chief Executive Officer, in addition to his continued role as Chief Legal Officer. Mark Wright, Chief Operating Officer, and David Styka, Chief Financial Officer, will also serve on the Executive Management Committee.
The Company's Board of Directors will immediately commence a comprehensive search and evaluation process to select a permanent replacement for the role of President and Chief Executive Officer.
"Over the past 12 years, Avi has helped build 3D Systems into a global leader in 3D design and digital fabrication and we thank him for his many contributions," said G. Walter Loewenbaum II, Chairman of the 3DS Board of Directors. "We are fortunate to have such a knowledgeable and capable leadership team already in place that can execute on our strategic initiatives while we identify the right individual to lead 3D Systems into a new era."
"We are profoundly grateful for the visionary leadership Avi has provided to our business and to our industry, and we wish him well in his future endeavors," said Charles Hull, Co-founder, Director, Chairman of the Executive Management Committee and Chief Technology Officer, 3DS. "As our industry continues to evolve and we look to the future, we are focused on aligning our resources and programs to best serve our customers and are excited about the many opportunities ahead."