3D Systems New CFO Suggests The Company Is In Phase 2 Of Turnaround

John McMullen is scheduled to take over from David Styka as the CFO of 3D Systems Corporation (NYSE: DDD) beginning July 1.

UBS’ Steven Milunovich maintains a Sell rating on the company, with a price target of $9.

The New CFO

McMullen spent over 30 years with HP Inc (NYSE: HPQ) in various financial roles, including CFO of HP's imaging and printing group and senior VP of finance. He will be joining 3D Systems after two years as CFO of Eastman Kodak Company Common New (NYSE: KODK),” Milunovich mentioned.

David Styka joined 3D Systems in January 2015, taking over as CFO from Ted Hull in May 2015. Styka will remain with the company to offer operational support to management.

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“The announcement today follows last week's news that CMO Cathy Lewis and COO Mark Wright were stepping down,” according to the UBS report.

Phase Two

Having taken over as the CEO, Vyomesh Joshi has outlined a three-phase plan for 3D Systems, where the first phase was to “listen and learn” and the second was “developing a strategy and organizing around it.”

Given the recent management changes, Milunovich believes that the company is now in Phase 2.

“We are encouraged by the move as Mr Joshi and Mr McMullen have a long history together at HP. Both have a proven track record in bringing a nascent technology into the mainstream with the 2D ink jet printer,” the analyst said.

Milunovich believes that new management could help improve customer confidence in dealing with the company.