3D Systems (NYSE: DDD) gained Tuesday on reports it may have entered into an unexpected Bluebird pact with General Motors (NYSE: GM) in Q3. The deal could be worth $6-$8 million, said Piper Jaffray analyst Troy Jensen, citing industry contacts.
"To our knowledge Detroit experienced significant rainfall over a short period of time and this caused a flood in General Motors Rapid Prototyping facility. The flooded facility was rumored to have up to 5 feet of water and the water had sewage mixed in with it. This ultimately ruined multiple machines and we believe General Motors purchased or ordered 11 iPro 8000s (list for roughly $600K) and a couple of SinterStation machines in the September quarter," said Jenson.
"Given this deal was likely not in 3D Systems pipeline, we believe it will provide a boost to the company's system revenues/backlog in the September quarter," he added.
This news gave a boost that DDD Really needed as the sector has been cold of late on positive catalysts and the stocks have been sufferred
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