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this article discusses the three basic types of formats used to read point cloud data true point cloud file formats true point cloud database formats and delimited text files further details on the first two types are discussed in the article we will demonstrate the third type using the point XYZ reader go ahead and download the XYZ file included with this article and follow along when adding a reader for XYZ files it is necessary to define the delimiter and component fields as shown in the next steps in FME workbench add a reader using the menu reader add reader or by using the add reader tool on the toolbar in the ad reader dialog type XYZ into the format field and select point cloud XYZ this format reads text data which includes at a minimum x y and z columns next to the data set field click on the ellipses and browse to the XYZ file continue in the add readers dialog enter the coordinate system UTM 8310 in coordinate system field now lets define the delimiter and component fields