Stratasys Ltd (Minneapolis and Rehovot, Israel), the 3D printing company, said Tuesday its CEO is leaving, with no permanent replacement named and amid financial losses.
Ilan Levin, 52 and CEO since July 2016, will depart effective June 1, Stratasys said in a statement. Elchanan “Elan” Jaglom, the company’s chairman, will take over as interim CEO until a permanent successor is named. Levin also stepped down as a Stratasys director. He had been on the board since 2000.
Levin’s exit comes after Stratasys posted deficits of $77.2 million in 2016, almost $40 million in 2017 and $13 million during this year’s first quarter.
The company declined to say whether Levin’s departure as voluntary or not. “Ilan decided to step down from his positions as CEO and member of the board, effective June 1, 2018,” Yonah Lloyd, vice president of investor relations, said in an email received Wednesday.
Stratasys produces 3D printers and its Stratasys Direct Manufacturing unit performs additive manufacturing for clients. With 3D printing, parts are made layer by layer from a digital design.
The company has moved toward making 3D printers capable of printing large parts in the aerospace and automotive industries. It has worked with companies such as Boeing Co., Ford Motor Co. and Siemens in developing new printers.
Stratasys also faces increased competition for industrial additive manufacturing. General Electric Co. and HP Inc. have both expanded their 3D printing operations. GE has said it plans to sell 10,000 3D printing machines over 10 years and exand additive into a $10 billion business for itself.
Stratasys said that Jaglom adding the interim CEO title will require a shareholder vote. The company said it will schedule a meeting for such a vote. There is no specific date for the gathering. “The date will be announced in the coming weeks,” Lloyd said.
What’s more, the Stratasys board has appointed an oversight committee to “help support management” until a new CEO is appointed, according to the statement. The board also formed an executive search committee. Stratasys said it will hire a search firm to find a permanent CEO. It is “too soon to say” how long the search will last, Lloyd said.
Levin, the departing CEO, will provide consulting services “as needed,” according to the statement. Stratasys declined to comment on Levin’s exit package.
Updated May 30 with responses from Stratasys.
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