3D Systems Announces Q3 and Nine Months 2003 Results.Business Editors VALENCIA Valencia, region, Spain Valencia (välān`thēä), autonomous region (1990 pop. 3,902,429) and former kingdom, E Spain, on the Mediterranean. It now comprises the provinces of Alicante, Castellón, and Valencia. , Calif.--(BUSINESS WIRE)--Nov. 10, 2003 3D Systems Corp. (Nasdaq:TDSC TDSC Thai Development Support Committee TDSC Time Domain Signal Coding TDSC Test Driver System - Charlie TDSC Time-Domain Spreading Code ) announced today its results for the third quarter and first nine months of 2003. Revenues for the quarter ended September September: see month. 26, 2003 were $24.9 million compared with revenues of $27.9 million in the third quarter of 2002, a decrease of 11%. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $3.5 million compared with an operating loss of $5.7 million in the 2002 period. Net loss available to common shareholders for Q3 2003 was $4.3 million or $.34 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared with a net loss available to common shareholders of $2.2 million or $.17 per fully diluted share in the prior year period. Revenues for the first nine months of 2003 were $74.8 million compared with revenues of $84 million in the 2002 nine month period, a decrease of 11%. Operating loss for the first nine months of 2003 was $11.0 million compared with an operating loss of $18.7 million in the 2002 period. Net loss available to common shareholders for the first nine months of 2003 was $14.9 million or $1.17 per fully diluted share compared with net income available to common shareholders of $850,000 or $.06 per fully diluted share in the first nine months of 2002. Included in the results for the 2002 nine month period was a gain of $18.5 million as a result of the Vantico arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the settlement. "The end of the third quarter, marked the conclusion of a chapter in the history of our company," said Abe Reichental, 3D Systems President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "During my first 45 days at 3D Systems, I have reached out to a number of our loyal customers and met or spoke with many of our outstanding employees and investors. I came away confident in our ability to leverage all of our privileged privileged not generally available; can be used only by selected persons or substances. privileged information information about a client's animals or business to which the veterinarian has access because of his/her professional assets to deliver to our customers a steady stream of differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: system solutions centered on improving our customers' bottom line," continued Reichental. "I truly appreciate all of the support given to me and the company during this transition period and look forward to updating you on our immediate plans as the fourth quarter unfolds." 3D Systems will hold a conference call to discuss Q3 2003 results today at 4:30 p.m. Eastern Standard Time (1:30 p.m. Pacific Standard Time). To access the call, dial 877/613-8341 or 706/679-7620 internationally. A recording of the call will be available two hours after the completion of the call for 7 days. To access the recording, dial 800/642-1687 or 706/645-9291 internationally and enter 3789294, the conference call ID number. About 3D Systems Founded in 1986, 3D Systems(R), the solid imaging company(SM), provides solid imaging products and systems solutions that reduce the time and cost of designing products and facilitate direct and indirect manufacturing. Its systems utilize patented proprietary technologies to create physical objects from digital input that can be used in design communication, prototyping, and as functional end-use parts. 3D Systems offers a wide range of imaging communication, rapid prototyping Building a part one layer at a time using a method of additive fabrication such as 3D printing. Such parts are used for concept modeling to determine if the product design meets the customer's expectations. and on demand manufacturing systems including the MJM MJM Multi-Jet Modeling (prototyping manufacturing) MJM Metropolitan Japanese Ministry MJM Married Jewish Male product line (InVision In`vi´sion n. 1. Lack of vision or of the power of seeing. 3-D printer and ThermoJet(R) solid object printer), SLA (1) (StereoLithography Apparatus) See 3D printing. (2) (Service Level Agreement) A contract between the provider and the user that specifies the level of service expected during its term. (R) (stereolithography The first 3D printing technology, which was pioneered by Chuck Hull of 3D Systems. See 3D printing. ) systems, SLS (Selective Laser Sintering) See laser sintering and 3D printing. (R) (selective laser sintering See laser sintering and 3D printer. ) systems, and Accura(R) materials (including photopolymers, metals, nylons, engineering plastics, and thermoplastics thermoplastics, materials that soften or melt when heated and harden when cooled. Thermoplastic polymers consist of long polymer molecules that are not linked to each other. i.e., have no cross-links. ). More information on the company is available at www.3dsystems.com, or by phoning 888/337-9786, or 661/295-5600 ext. 2882 internationally, or email moreinfo@3dsystems.com. Note to editors: "the solid imaging company" is a service mark; and ThermoJet, SLA, SLS, Accura, 3D Systems and the 3D logo are registered trademarks of 3D Systems Inc. Certain statements in this news release may include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that express the expectation, prediction "Prediction is very difficult, especially if it's about the future." - Niels Bohr A prediction is a statement or claim that a particular event will occur in the future in more certain terms than a forecast. , belief or projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. of 3D Systems. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievement of 3D Systems to be materially and adversely different from any future results, performance or achievement expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by these forward-looking statements. Factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to; disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. caused by the reconfiguration of the management team, the ability of the Company to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. its obligations to U.S. Bank by November November: see month. 28, 2003; the funding of amounts of capital adequate to provide for the working capital needs of the Company; actions of competitors and customers; the Company's ability to successfully design and produce new products; customer acceptance of new products; the Company's ability to enter into successful relationships with new customers to fully exploit its products; the Company's ability to successfully implement all elements of its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and cost savings program, and such other factors as are described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to update any forward-looking statements.
3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended
September 26, 2003 and September 27, 2002
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
2003 2002 2003 2002
(As Restated) (As Restated)
Sales:
Products $15,940 $18,587 $48,686 $56,958
Services 8,995 9,327 26,136 27,013
Total sales 24,935 27,914 74,822 83,971
Cost of Sales:
Products 8,661 9,303 26,705 31,044
Services 6,451 6,701 20,020 19,898
Total cost of sales 15,112 16,004 46,725 50,942
Gross profit 9,823 11,910 28,097 33,029
Operating expenses:
Selling, general and
administrative 11,092 11,129 31,467 35,073
Research and development 2,017 3,709 7,180 12,344
Severance and other
restructuring costs 223 2,734 474 4,351
Total operating
expenses 13,332 17,572 39,121 51,768
Loss from operations (3,509) (5,662) (11,024) (18,739)
Interest and other expense,
net 394 629 2,281 1,997
Gain on arbitration
settlement - - - 18,464
(Loss) income before
provision for income taxes (3,903) (6,291) (13,305) (2,272)
Provision for (benefit from)
income taxes 78 (4,079) 1,109 (3,126)
Net (loss) income (3,981) (2,212) (14,414) 854
Preferred stock dividend 320 - 518 -
Net (loss) income
available to common
shareholders $(4,301) $(2,212) $(14,932) $854
Shares used to calculate
basic net (loss) income
available to common
shareholders per share 12,778 12,675 12,746 12,881
Basic net (loss) income
available to common
shareholders per share $(0.34) $(0.17) $(1.17) $0.07
Shares used to calculate
diluted net (loss) income
available to common
shareholder per share 12,778 12,675 12,746 13,441
Diluted net (loss) income
available to common
shareholders per share $(0.34) $(0.17) $(1.17) $0.06
3D SYSTEMS CORPORATION
Condensed Consolidated Balance Sheets
As of September 26, 2003 and December 31, 2002
(in thousands)
(unaudited)
Sept. 26, Dec. 31,
ASSETS 2003 2002
Current assets:
Cash and cash equivalents $5,681 $2,279
Restricted cash 1,653 -
Accounts receiveable, less allowances for
doubtful accounts of $2,125 and $3,068 18,470 27,420
Current portion of lease receivables 252 322
Inventories, net of reserves of $2,393 and $1,876 12,650 12,564
Prepaid expenses and other current assets 2,201 3,687
Total current assets 40,907 46,272
Property and equipment, net 12,767 15,339
Licenses and patent costs, net 18,010 14,960
Lease receivables, less current portion,
net of allowance of $821 and $414 56 553
Acquired technology, net 6,442 7,647
Goodwill 44,666 44,456
Other assets, net 2,181 3,006
$125,029 $132,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $8,550 $2,450
Accounts payable 7,715 10,830
Accrued liabilities 14,890 15,529
Current portion of long-term debt 165 10,500
Customer deposits 614 801
Deferred revenues 13,406 14,770
Total current liabilities 45,340 54,880
Other liabilities 3,313 3,397
Long-term debt, less current portion 3,925 4,090
Subordinated debt 10,000 10,000
Total liabilities 62,578 72,367
Authorized 5,000 preferred shares, Series A
preferred stock, authorized 1,000 shares,
Series B redeemable preferred stock,
8% convertible, authorized 2,670 shares,
issued and outstanding 2,634 shares in 2003,
mandatory redemption in 2013 15,194 -
Stockholders' equity:
Common stock, authorized 25,000 shares,
issued and outstanding 12,734 and issued
and outstanding 12,725 13 13
Capital in excess of par value 85,594 84,931
Notes receivable from officers for purchases of
stock (19) (59)
Treasury stock (45) -
Preferred stock dividend (518) -
Accumulated deficit (35,831) (21,419)
Accumulated other comprehensive loss (1,937) (3,600)
Total stockholders' equity 47,257 59,866
$125,029 $132,233
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