3D Systems Announces Record Second Quarter and First Half Results; Company Progress Continues With Increased Revenues, Margins & Profit.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)--July 20, 2000 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 ) today reported record earnings of $1.9 million or 15 cents 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 for second quarter 2000, representing a significant improvement from the previous year's second quarter net loss of $3.9 million or 35 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . The company also achieved record second quarter revenues of $25.4 million, an 18% increase over the prior year second quarter revenue of $21.5 million. For the first half of 2000, the company recorded total revenue of $48.4 million and earnings of $3.0 million versus revenue of $44.1 million and a net loss of $6.2 million in the previous year. "We're we're Contraction of we are. we're we are seeing continued steady improvement, and the company expects to meet its operating goals for 2000," stated Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. Service, president and chief executive officer. "The results have been fueled by aggressive sales and marketing initiatives, combined with continued cost controls and margin improvements." A growing installed base created an increase in materials revenue for the company's 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) and ThermoJet(TM) products in the second quarter. "Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue from materials is critical to creating ongoing financial growth for the company," stated Service. "As a result of continued market acceptance of our low-end low-end adj. 1. Cheapest in a line of merchandise: low-end subcompact cars. 2. Informal Of, relating to, or intended for low-income consumers; downscale: ThermoJet office printer, we saw a jump of 142% in material sales for this product compared to the same period last year. We are pleased with the increase in revenue associated with high-margin consumables and the impact on our overall profitability." Gross profit was up 55% from the prior year, increasing to $12.2 million for the second quarter of this year compared with $7.8 million in the prior year's second quarter. Likewise, gross profit as a percentage of sales was 48%, up from 37% in the prior year's second quarter. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Service, the company expects to realize continued improvements in gross profit over the previous year's levels. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were reduced 30% versus last year's second quarter, from $13.3 million to $9.3 million. Cash balances at June June: see month. 30, 2000, totaled $13.5 million, a 20% increase over first quarter, and reflect the positive results of the company's cash management and cost control efforts. "The company has chosen to build inventory to support the revenue levels expected in the second half of the year. We are limiting our investment in working capital and will carefully balance it with the growth opportunities we see for the coming months," commented Service. "We are seeing increasing market demand for our equipment as a result of recent material and software improvements," continued Service. "We just announced the availability of a revolutionary material for our SLA product line, SL 7540, which is the first in a series of functional materials that can potentially eliminate tooling or be used for final production applications. By targeting tooling, rapid manufacturing Building parts out of plastic or metal one layer at a time using a method of additive fabrication such as 3D printing. Multiple pieces, either similar or dissimilar, can be built simultaneously. and mass customization applications, we believe the company can significantly expand its market presence. "Multi-unit sales and strategic partnerships are an important part of our strategy, and additional deals are continuing to close. The financial impact of several recent announcements, including Align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. Technology and the Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. Productivity Council, will be most evident in the second half of this year." About 3D Systems 3D Systems provides solid imaging products and services that substantially reduce the time and cost required to design, test and manufacture products. The company's systems utilize patented technologies, which create physical objects from digital input. 3D Systems currently offers the ThermoJet(TM) office printer and SLA(R) industrial systems, which include proprietary software and materials. These products offer a wide range of applications to a variety of industries. The company also licenses the 3D Keltool(R) process, a complementary application to the SLA product line that produces injection molding injection molding n. A manufacturing process for forming objects, as of plastic or metal, by heating the molding material to a fluid state and injecting it into a mold. and die casting die casting Forming metal objects by injecting molten metal under pressure into dies or molds. An early and important use of the technique was in the Linotype machine (1884), but the mass-production automobile assembly line gave die casting its real impetus. inserts from SLA system master patterns. Based in Valencia, Calif., 3D Systems was founded in 1986 and is recognized as the world technology and market leader in solid imaging. For additional information, visit the company's Website at www.3dsystems.com or phone (888) 337-9786, ext. 741. For an investor packet, call the company's shareholder communications service at (800) 757-1799. Note to editors: 3D Systems and ThermoJet are trademarks, and Keltool, SLA and the 3D logo are registered trademarks of 3D Systems. Except for the historical information contained in this news release, the matters discussed 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 involve risks and uncertainties including: the ability of the Company to contain costs, increase recurring revenue, and maintain gross revenues at a level necessary to maintain gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. , the availability and acceptance of products, the impact of competitive products and pricing, dependence on key personnel and suppliers, industry-wide domestic and international economic conditions, and other risks detailed in the company's SEC reports including its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 1999, and its quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2000.
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
(in thousands)
ASSETS June 30, 2000 Dec. 31, 1999
Current assets:
Cash and cash equivalents $ 13,537 $ 12,553
Accounts receivable, less
allowances for doubtful accounts of
$2,481 (2000) and $2,912 (1999) 25,037 26,772
Current portion of lease receivables 1,094 607
Inventories 15,323 8,786
Deferred tax assets 2,355 2,355
Prepaid expenses and other current assets 2,632 2,028
Total current assets 59,978 53,101
Property and equipment, net 14,714 16,245
Licenses and patent costs, net 8,851 9,135
Deferred tax assets 6,612 7,658
Lease receivables, less current portion 3,064 2,436
Other assets 2,483 2,083
$ 95,702 $ 90,658
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,892 $ 5,838
Accrued liabilities 7,879 8,741
Current portion of long-term debt 115 110
Customer deposits 581 345
Deferred revenues 8,141 6,848
Total current liabilities 23,608 21,882
Other liabilities 3,607 4,673
Long-term debt, less current portion 4,435 4,495
31,650 31,050
Stockholders' equity:
Preferred stock, authorized
5,000 shares, none issued -- --
Common stock, authorized 25,000 shares,
issued 12,109 and outstanding
11,884 (2000) and issued 11,658 and
outstanding 11,433 (1999) 12 12
Capital in excess of par value 78,069 75,064
Notes receivable from officers (120) (240)
Accumulated deficit (9,078) (12,066)
Accumulated other comprehensive
loss (3,291) (1,622)
Treasury stock, at cost, 225 shares
(2000 and 1999) (1,540) (1,540)
Total stockholders' equity 64,052 59,608
$ 95,702 $ 90,658
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
(Unaudited)
(in thousands)
Three Month Periods Six Month Periods
Ended Ended
June 30, July 2, June 30, July 2,
2000 1999 2000 1999
Sales:
Products $ 18,603 $ 14,206 $ 34,276 $ 29,485
Services 6,813 7,256 14,153 14,661
Total sales 25,416 21,462 48,429 44,146
Cost of sales:
Products 8,220 8,595 15,171 17,130
Services 5,017 5,019 10,281 9,974
Total cost of sales 13,237 13,614 25,452 27,104
Gross profit 12,179 7,848 22,977 17,042
Operating expenses:
Selling, general and
administrative 7,239 8,714 14,571 18,944
Research and development 2,108 2,432 3,979 4,875
Other -- 2,188 -- 2,188
Total operating expenses 9,347 13,334 18,550 26,007
Income (loss) from operations 2,832 (5,486) 4,427 (8,965)
Interest income 180 86 312 263
Interest and other expense (121) (83) (212) (134)
Income (loss) before provision
for income taxes 2,891 (5,483) 4,527 (8,836)
Provision for (benefit from)
income taxes 983 (1,534) 1,539 (2,607)
Net income (loss) $ 1,908 $ (3,949) $ 2,988 $ (6,229)
Shares used to calculate
basic net income (loss)
per share 11,710 11,406 11,630 11,398
Basic net income (loss)
per share $ 0.16 $ (0.35) $ 0.26 $ (0.55)
Shares used to calculate
diluted net income (loss)
per share 12,684 11,406 12,512 11,398
Diluted net income (loss)
per share $ 0.15 $ (0.35) $ 0.24 $ (0.55)
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