333D Limited Expands Digital Asset Management and 3D Printing Services with New Contracts
333D LIMITED (T3D) Share Update July 2024 Tuesday 30th
333D Limited Secures New Contracts for Digital Asset Management and 3D Printing
333D Limited (ASX: T3D) has announced two new service agreements with Next Healthcare Pty Ltd and Cloud Strike Pty Ltd t/a Align Radiology, aimed at expanding their digital asset management and 3D printing services.
Instant Summary:
- 333D Limited signs service agreements with Next Healthcare and Align Radiology.
- The agreements include software development, digital asset management, and 3D printing services.
- Recurring revenue expected from monthly license fees and pay-per-use 3D printing services.
- Agreements are ongoing until terminated with a 3-month notice period.
Service Agreements with Next Healthcare and Align Radiology
333D Limited, a company specializing in digital asset creation and management, has entered into service agreements with Next Healthcare Pty Ltd and Align Radiology. These agreements will leverage 333D's expertise in digital capture, digital creation, artificial intelligence, and 3D printing to provide comprehensive services to these entities.
Next Healthcare partners with healthcare providers to offer a turnkey solution that includes radiology reporting, financial modeling, equipment, training, administrative support, and more. Under the new agreement, 333D will develop software to automate the digital capture of Next Healthcare's data, manage their digital assets, and provide 3D printing services. The software development services will be billed on a fixed pricing basis, while digital asset management will be charged based on the volume of transactions processed. The 3D printing services will be offered on a pay-per-use basis.
Align Radiology operates similarly to Next Healthcare, providing diagnostic imaging reporting and associated services. The agreement with Align Radiology mirrors that with Next Healthcare, including software development, digital asset management, and 3D printing services under a similar fee structure. Both agreements are ongoing until terminated by either party with a three-month written notice or for cause.
Expected Impact and Financial Implications
Dr. Nigel Finch, a director at 333D Limited, expressed optimism about these new partnerships. He highlighted that these agreements align with the company's strategy to monetize and commercialize its core expertise in digital asset creation and management, as well as 3D printing. The recurring license fee revenues from these agreements are expected to facilitate better cash flow management for the company.
While it is too early to predict the exact financial impact, the company is well-positioned to focus its resources on delivering under these new agreements, especially after the expiration of their commodity license agreement with AFL in late 2023.
The new service agreements are expected to have a positive impact on 333D Limited's stock, as they promise recurring revenue streams and the potential for significant growth in the digital asset management and 3D printing sectors. Investors may view these agreements as a strategic move to diversify and stabilize the company's revenue base.
Investor Reaction:
Analysts are likely to react positively to this news, noting the strategic alignment with 333D's core competencies and the potential for recurring revenue. However, some may adopt a wait-and-see approach to gauge the actual financial impact over the coming quarters.
Conclusion:
Investors should keep an eye on 333D Limited's performance under these new service agreements and consider the potential long-term benefits of their expanded service offerings. The company's focus on digital asset management and 3D printing could position it well for future growth.