NEW YORK (TheStreet) -- Shares of 3D Systems Corp. (DDD) were higher by 6.84% to $22.79 on heavy volume at the close of trading on Monday afternoon, after the 3D printing and technology company announced it has signed an agreement with Naval Sea Systems Command's Naval Surface Warfare Center Carderock Division.
As part of the agreement the company and the U.S. Navy will jointly develop and evaluate 3D printing to redefine the supply chain for naval ship components. It also reinforces 3D's ability to continue to modernize the country's defense industrial base, the company said in a statement announcing the deal.
"Additive manufacturing has the potential to be a truly disruptive technology and shows great promise for supporting Naval Sea Systems components," Jennifer Wolk, NSWCCD's Additive Manufacturing Lead said in the same statement.
"However, a great deal more needs to be done to ensure this technology can be qualified for repeatable, safe, and effective use. This cooperative research and development agreement is an important step toward broader utilization of this technology," Wolk added.
The value of the deal was not disclosed.
Separately, TheStreet Ratings team rates 3D SYSTEMS CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3D SYSTEMS CORP (DDD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."