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3D Systems (DDD) CFO Departure Viewed as 'Surprise'

March 31, 2014 11:00 AM EDT
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3D Systems (NYSE: DDD) said in a filing Monday it entered into a transition agreement with Damon Gregoire, the Company's Senior Vice President and Chief Financial Officer.

The Transition Agreement is effective as of March 28, 2014. Pursuant to the Transition Agreement, the Company and the Executive have mutually agreed that the Executive will continue to serve the Company as its Senior Vice President and Chief Financial Officer through the date of the Company's hiring of the Executive's successor, at which time the Executive will transition to the role of Executive Vice President of Mergers & Acquisitions of the Company. The Transition Agreement provides that unless it is terminated sooner by the Executive or the Company, the Executive will serve the Company in the role of Executive Vice President of Mergers & Acquisitions through December 31, 2015, at which time the Executive will retire from the Company. Thereafter, the Executive will serve the Company in a non-employee consulting role through December 31, 2016, and will perform such tasks as the Company and the Executive mutually agree. The transition arrangement allows the Executive to work from a different geographic location and enables him to attend to certain family and family health-related matters.

Commenting on the news, analyst Sherri Scribner of Deutsche Bank said, "Gregoire's departure is a surprise, considering his age (44). Gregoire has also been CFO of 3D Systems since 2007, steering the company through a number of new stock issuances and through multiple acquisitions."

"The transition creates some uncertainty given Gregoire has been one of the public faces of the company to investors, and has successfully led 3D Systems through various stock issuances and acquisitions. However, the 8K filing suggests that Gregoire's decision to transition out of the CFO role was related to family health issues and therefore, we do not view the move as a substantial negative read on the company," added the analyst.

Deutsche Bank has a Buy rating on 3D Systems with a price target of $115.00

For an analyst ratings summary and ratings history on 3D Systems click here. For more ratings news on 3D Systems click here.

Shares of 3D Systems closed at $59.07 yesterday.


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