3D Systems Announces Third-Quarter and Nine-Month Results; Integration of DTM on Schedule.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers VALENCIA, Calif.--(BUSINESS WIRE)--Oct. 17, 2001 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 announced revenues for the third-quarter 2001 of $31.5 million compared with $29.5 million in the prior year, an increase of 7%. Earnings 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 were 2 cents in the third quarter of 2001 compared with 21 cents in the same period the prior year. Revenues for the first nine months of 2001 totaled $84.5 million compared with $78.0 million in the same period in the prior year, an increase of 8%. Earnings per fully diluted share of 10 cents were achieved in the first nine months of 2001 compared with 45 cents per fully diluted share in the prior-year period. During the quarter, 3D Systems successfully completed the acquisition of DTM DTM dermatophyte test medium. Corp. The increase in revenue in both the third quarter and nine-month period is primarily attributable to the impact of consolidating the results of DTM's operations effective Aug. 20, 2001. The SLS (Selective Laser Sintering) See laser sintering and 3D printing. (R) product line, which includes systems, powders and services, provided $7.3 million in revenue for the period in which the SLS product line was included with the company's operations. "In the third quarter our revenue and profitability levels, especially in the U.S., were challenged by economic conditions and the effects of the events surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. Sept. 11," said Brian K. Service, president and chief executive officer. "All areas of the business were impacted. The multi-jet modeling (MJM MJM Multi-Jet Modeling (prototyping manufacturing) MJM Metropolitan Japanese Ministry MJM Married Jewish Male ) and 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) product lines recorded revenues below the similar prior-year period, while revenue associated with the SLS product line was similar to those recorded a year ago. "The earnings shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. is directly attributable to the reduction in the number of large-frame systems sold relative to the overall higher number of total SLA systems shipped," Service said. "Our margins for the third quarter of 2001 were 43% compared with 49% in the same period the prior year. This trend is due primarily to continued weaknesses in the automotive and aviation market segments. "We were pleased that, despite the obvious impact on earnings, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was approximately $3 million," he added. "Despite the weakness in large-frame systems, sales growth for the new Viper si2(TM) SLA system showed strength in the third quarter with a total of 32 units sold, which is a significant increase from the second quarter of 2001, when it was introduced," Service said. "The newly introduced Vanguard Vanguard Any of three unmanned U.S. experimental satellites. Vanguard I (1958), the second U.S. satellite placed in orbit around Earth (after Explorer 1), was a tiny 3.25-lb (1.47-kg) sphere with two radio transmitters. SLS system accounted for a majority of the SLS units shipped." Service added: "Despite the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or surrounding this quarter, we believe the company can continue to move forward and execute its plan to penetrate opportunities in specific applications that are currently under development, such as footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). , defense, dental and other medical devices. As businesses begin to return to normal spending levels, we expect to continue our growth. We are focusing our efforts on maintaining profitability and enhancing liquidity as we pursue these opportunities." In conjunction with the merger of DTM Corp., the company advanced $39.0 million under a newly established credit facility to fund the transaction. As of Sept. 28, 2001, the outstanding balance under the credit facility was reduced to $35.2 million. "The integration of the laser sintering Building prototypes and finished parts in a machine from powdered thermoplastics and metals that are cured by heat from a laser. From CAD drawings that have been cross sectioned into thousands of layers, the machine builds up the part by curing one layer at a time. business with 3D Systems is proceeding well, and we expect to have that activity complete by year end with the ability to realize the synergies and cost savings," said E. James Selzer, chief financial officer. "In addition, we believe that our acquisition of RPC (Remote Procedure Call) A programming interface that allows one program to use the services of another program in a remote machine. The calling program sends a message and data to the remote program, which is executed, and results are passed back to the calling Ltd. of Marly marl n. A crumbly mixture of clays, calcium and magnesium carbonates, and remnants of shells that is sometimes found under desert sands and used as fertilizer for lime-deficient soils. tr.v. , Switzerland, will provide additional development and growth opportunities for resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing materials used in our SLA systems." As previously announced, 3D Systems will hold a conference call at 1:30 p.m. Eastern time today to discuss results. The call can be accessed by dialing 877/613-8341 or 706/679-7620 internationally. A recording of the call will be available for 48 hours beginning at 4 p.m. Eastern time today. The recording can be accessed by dialing 800/642-1687 or 706/645-9291 internationally and entering 2055754. About 3D Systems Founded in 1986, 3D Systems provides solid imaging products and solutions that help reduce the time and cost of designing products and facilitate direct and indirect manufacturing. Its systems utilize patented technologies that create physical objects from digital input. 3D Systems currently offers the ThermoJet(R) solid object printer, SLA(R) systems (stereolithography The first 3D printing technology, which was pioneered by Chuck Hull of 3D Systems. See 3D printing. ) and SLS(R) systems (selective laser sintering See laser sintering and 3D printer. ), as well as related software and materials. Product pricing in the U.S. ranges from $49,995 for the ThermoJet printer, to $799,000 for the high-end SLA 7000 system. The company licenses the complementary 3D Keltool(R) process, a method for producing steel mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. inserts, and currently is developing systems that use composite paste materials for direct manufacturing See rapid manufacturing. . In August, 3D Systems merged with DTM Corp. More information on the company is available at www.3dsystems.com, or by phoning 888/337-9786, ext. 797, or 661/295-5600 internationally. An investor packet can be obtained by calling 800/757-1799. 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, belief or projection 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 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: world economic conditions including the unknown effects of the continuing U.S. military action; the funding of amounts of capital adequate to provide for the working capital needs of the company; actions of competitors and customers; reliance on single or limited suppliers; the ability to close acquisition of RPC and efficiently integrate its operations into 3D Systems' or alternatively to timely and cost-effectively identify and obtain or independently develop resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. adequate for use with 3D Systems' products; the ongoing costs and uncertain outcome of the 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 proceeding between 3D Systems and Vantico Inc.; the ability to realize the cost reductions from the efficient integration of DTM into the business of 3D Systems; and such other factors as are described in the company's filings with the Securities and Exchange Commission, including annual reports 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 Dec. 31, 2000, quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31 and June 30, 2001, and 3D Systems' current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed on April 6, April 10 and Sept. 4, 2001. Note to Editors: ThermoJet, SLA, SLS, Keltool and the 3D logo are registered trademarks of 3D Systems.
3D SYSTEMS CORP.
Consolidated Statements of Operations
(Unaudited)
(in thousands)
Three-Month Nine-Month
Periods Ended Periods Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2001 2000 2001 2000
Sales:
Products $ 22,440 $ 21,724 $ 60,327 $ 55,999
Services 9,104 7,824 24,162 21,977
Total sales 31,544 29,548 84,489 77,976
Cost of sales:
Products 11,745 9,245 29,346 24,416
Services 6,280 5,715 17,509 15,996
Total cost of sales 18,025 14,960 46,855 40,412
Gross profit 13,519 14,588 37,634 37,564
Operating expenses:
Selling, general and
administrative 10,001 8,430 28,001 23,001
Research and development 2,791 1,911 7,624 5,890
Total operating expenses 12,792 10,341 35,625 28,891
Income from operations 727 4,247 2,009 8,673
Interest income 210 84 751 397
Interest and other expense (570) (133) (773) (345)
Income before provision for
income taxes 367 4,198 1,987 8,725
Provision for income taxes 136 1,427 735 2,966
Net income $ 231 $ 2,771 $ 1,252 $ 5,759
Shares used to calculate basic
net income per share 12,499 12,009 12,396 11,756
Basic net income per share $ 0.02 $ 0.23 $ 0.10 $ 0.49
Shares used to calculate
diluted net income per share 13,276 13,336 13,176 12,789
Diluted net income per share $ 0.02 $ 0.21 $ 0.10 $ 0.45
3D SYSTEMS CORP.
Consolidated Balance Sheets
(Unaudited)
(in thousands)
ASSETS Sept. 28, 2001 Dec. 31, 2000
Current assets:
Cash and cash equivalents $ 8,528 $ 18,999
Accounts receivable, less allowances for
doubtful accounts of $2,657 (2001)
and $1,599 (2000) 41,703 33,304
Current portion of lease receivables 445 1,497
Inventories 23,157 14,945
Deferred tax assets 2,468 2,824
Prepaid expenses and other current assets 4,295 3,496
Total current assets 80,596 75,065
Property and equipment, net 16,263 13,141
Licenses and patent costs, net 10,764 8,417
Deferred tax assets 5,210 5,210
Lease receivables, less current portion 970 3,629
Acquired technology 9,100 --
Other assets 43,692 4,435
$ 166,595 $ 109,897
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,026 $ 8,264
Accrued liabilities 15,160 9,574
Current portion of long-term debt 24,582 120
Customer deposits 1,236 1,087
Deferred revenues 13,329 11,471
Total current liabilities 64,333 30,516
Other liabilities 2,345 3,210
Long-term debt, less current portion 16,990 4,375
83,668 38,101
Stockholders' equity:
Preferred stock, authorized 5,000 shares,
none issued -- --
Common stock, authorized 25,000 shares,
issued 12,732 and outstanding 12,507
(2001) and issued 12,423 and outstanding
12,198 (2000) 13 12
Capital in excess of par value 91,870 81,568
Notes receivable from officers (291) (330)
Accumulated deficit (2,670) (3,922)
Accumulated other comprehensive loss (4,455) (3,992)
Treasury stock, at cost, 225 shares
(2001 and 2000) (1,540) (1,540)
Total stockholders' equity 82,927 71,796
$ 166,595 $ 109,897
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