Attached files
| file | filename |
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| 8-K - FORM 8-K - 3D SYSTEMS CORP | f8k_110309.htm |
| EX-99 - EXHIBIT 99.2 - 3D SYSTEMS CORP | exh_992.htm |
EXHIBIT 99.1
3D Systems Reports Operating Results for the Third Quarter
Improved Net Income and Gross Profit Margin on Sequentially Higher Revenue and Reduced Operating Expenses
ROCK HILL, S.C., Nov. 3, 2009 (GLOBE NEWSWIRE) -- 3D Systems Corporation (Nasdaq:TDSC), a leading provider of 3-D Printing, Rapid Prototyping and Manufacturing parts and systems solutions, announced its operating results for the third quarter and first nine months of 2009 today.
The company reported diluted earnings per share of 4 cents for the third quarter of 2009 on lower revenue. Gross profit margin and operating expenses both improved compared to the third quarter of 2008.
The company reported $0.9 million of third quarter net income, including $1.8 million of non-cash expenses primarily related to depreciation and amortization expense.
The company's cash position remained unchanged from the previous quarter. For the first nine months of 2009, the company generated $1.8 million of net cash to end the period with $24.0 million of available cash compared to $22.2 million at December 31, 2008.
The table below summarizes the company's key financial results for the third quarters and first nine months of 2009 and 2008.
Operating Highlights
Third Quarters and First Nine Months
($ in millions except for per share amounts)
----------------------------------------------------------------------
Third Quarter First Nine Months
----------------------------------------------------------------------
% %
Change Change
Operating Favorable Favorable
Highlights 2009 2008 (Unfavorable) 2009 2008 (Unfavorable)
----------------------------------------------------------------------
Revenue $ 27.7 $ 35.6 (22%) $ 76.4 $104.0 (27%)
----------------------------------------------------------------------
Gross profit $ 12.3 $ 14.0 (12%) $ 33.6 $ 40.3 (17%)
% of Revenue 45% 39% 44% 39%
----------------------------------------------------------------------
Operating
expenses $ 11.2 $ 14.3 22% $ 35.0 $ 47.1 26%
% of Revenue 41% 40% 46% 45%
----------------------------------------------------------------------
Operating
income
(loss) $ 1.1 ($0.3) 473% ($1.4) ($6.8) 80%
----------------------------------------------------------------------
Net income
(loss) $ 0.9 ($1.0) 191% ($2.5) ($8.0) 69%
======================================================================
Diluted
earnings
(loss) per
share $ 0.04 ($0.04) 190% ($0.11) ($0.36) 69%
----------------------------------------------------------------------
Available
cash $ 24.0 $ 18.1 32% $ 24.0 $ 18.1 32%
----------------------------------------------------------------------
Depreciation
& Amorti-
zation $ 1.3 $ 1.8 28% $ 4.3 $ 5.0 12%
% of Revenue 5% 5% 6% 5%
----------------------------------------------------------------------
"We are pleased that sales of systems and materials rebounded somewhat during the quarter amidst a continued challenging operating environment world-wide," said Abe Reichental, 3D Systems' President and Chief Executive Officer.
"We believe that our ability to deliver improved net income on lower revenue that was derived from a higher portion of 3-D printers, demonstrates the leverage we achieved from the cost reductions and productivity improvements we implemented over the past 24 months," continued Reichental.
Systems revenue increased sequentially by $0.9 million but declined to $6.8 million compared to the third quarter of 2008. 3-D Printer sales accounted for nearly half of all systems revenue, reflecting the first full-quarter revenue contribution of V-Flash(R) Desktop Printers and sustained demand for our expanded family of ProJet(TM) Professional Printers.
Materials sales grew by $1.4 million sequentially, indicating a modest recovery across the installed base, but were 20% below the third quarter of 2008. Integrated materials contributed $0.5 million to the sequential quarterly growth.
Service revenue rose sequentially by 8% but at $7.7 million for the quarter was lower than comparable 2008 quarterly revenue reflecting the cumulative impact of the trailing 12-month decline in large-frame systems revenue on recurring maintenance and warranty revenue. These declines began during the first quarter of 2008.
Notwithstanding its 14% lower service revenue, the company reported that service gross profit margin rose 21 percentage points to 48% over the comparable 2008 period, reflecting the results of continued quality improvements. Gross profit for services was $3.7 million, an increase of $1.3 million over the third quarter of 2008.
"We are pleased that during a most challenging operating period, we were able to continue to strengthen our balance sheet and get our house in order operationally and financially," added Reichental. "Our current financial strength and flexibility, as reflected by our debt-free balance sheet and sustained cash position, enabled us to begin to pursue new organic and acquisition-related growth initiatives.
"We expect to benefit competitively from our expanding products and services portfolio that now includes 3Dproparts(TM), the world's largest Rapid Prototyping and Manufacturing parts service. We remain confident in our ability to execute on our strategic plans and provide value to our customers and stockholders," concluded Reichental.
Conference Call and Audio Webcast Details
3D Systems will hold a conference call and audio webcast to discuss its operating results for the third quarter and first nine months of 2009 on Wednesday, November 4, 2009 at 9:00 a.m., Eastern Time.
* To access this Conference Call, dial 1-888-336-3485 (or 706-634-
0653 from outside the United States). The confirmation code is
360-281-48.
* To access the audio webcast, log onto 3D Systems' Web site at
www.3dsystems.com/ir. To ensure timely participation and
technical capability, we recommend logging on a few minutes
prior to the conference call to activate your participation.
The webcast will be available for replay beginning approximately
three hours after completion of the call at: www.3dsystems.com/ir.
Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.
About 3D Systems Corporation
3D Systems is a leading provider of 3-D Printing, Rapid Prototyping and Manufacturing parts and systems solutions. Its systems and materials reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input. 3D Systems also operates 3dproparts.com, the world's largest Rapid Prototyping and Manufacturing parts service. These solutions are used for design communication and prototyping as well as for production of functional end-use parts: Transform your products.
More information on the company is available at www.3Dsystems.com, www.modelin3d.com, www.3Dsystems.com/3dm, www.3Dproparts.com, www.3Dsystems.com/ir, www.toptobottomdental.com, www.mqast.com, http://blog.3Dsystems.com, or via email at moreinfo@3Dsystems.com.
The 3D Systems Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4537
3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Operations
Quarters and Nine Months Ended September 30, 2009 and 2008
(Unaudited)
Quarters Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
(in thousands, except 2009 2008 2009 2008
per share amounts) -------- -------- -------- --------
Revenue:
Products $ 19,948 $ 26,559 $ 53,021 $ 77,037
Services 7,719 9,018 23,382 26,983
-------- -------- -------- --------
Total revenue 27,667 35,577 76,403 104,020
Cost of sales:
Products 11,309 14,925 28,689 42,888
Services 4,039 6,615 14,086 20,790
-------- -------- -------- --------
Total cost of sales 15,348 21,540 42,775 63,678
-------- -------- -------- --------
Gross profit 12,319 14,037 33,628 40,342
-------- -------- -------- --------
Operating expenses:
Selling, general and
administrative 8,362 10,414 26,368 36,033
Research and development 2,865 3,916 8,618 11,091
-------- -------- -------- --------
Total operating expenses 11,227 14,330 34,986 47,124
-------- -------- -------- --------
Operating income (loss) 1,092 (293) (1,358) (6,782)
Interest and other expense,
net 59 336 546 165
-------- -------- -------- --------
Income (loss) before provision
for income taxes 1,033 (629) (1,904) (6,947)
Provision for income taxes 106 360 566 1,056
-------- -------- -------- --------
Net income (loss) 927 (989) (2,470) (8,003)
Net income attributable to
noncontrolling interest 25 -- 29 --
Net income (loss) attributable
to 3D Systems $ 902 $ (989) $ (2,499) $ (8,003)
======== ======== ======== ========
Shares used to calculate basic
earnings (loss) per share 22,627 22,366 22,504 22,348
======== ======== ======== ========
Shares used to calculate
diluted earnings (loss) per
share 22,694 22,366 22,504 22,348
======== ======== ======== ========
Basic and diluted net earnings
(loss) per share (1) $ 0.04 $ (0.04) $ (0.11) $ (0.36)
======== ======== ======== ========
(1) See Schedule 1 for the calculation of basic and diluted net loss
per share.
3D SYSTEMS CORPORATION
Condensed Consolidated Balance Sheets
September 30, 2009 and December 31, 2008
(Unaudited)
September 30, December 31,
(in thousands) 2009 2008
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 23,981 $ 22,164
Accounts receivable, net 19,059 25,276
Inventories, net 20,284 21,018
Prepaid expenses and other current
assets 2,336 1,601
Deferred income tax assets 805 935
Restricted cash 93 3,309
------------- ------------
Total current assets 66,558 74,303
Property and equipment, net 21,109 24,072
Other intangible assets, net 3,120 3,663
Goodwill 48,382 48,010
Other assets, net 2,974 2,954
------------- -------------
$ 142,143 $ 153,002
============= =============
LIABILITIES AND EQUITY
Current liabilities:
Industrial development bonds related to
assets held for sale $ -- $ 3,085
Current portion of capitalized lease
obligations 207 195
Accounts payable 13,045 17,133
Accrued liabilities 7,165 8,057
Customer deposits 1,040 1,136
Deferred revenue 7,503 9,418
------------- -------------
Total current liabilities 28,960 39,024
Long-term portion of capitalized lease
obligations 8,311 8,467
Other liabilities 3,703 3,277
------------- -------------
Total liabilities 40,974 50,768
------------- -------------
Stockholders' equity:
Common stock, authorized 60,000 shares,
issued and outstanding 22,712 shares
(2009) and 22,424 shares (2008) 23 22
Additional paid-in capital 177,372 176,180
Treasury stock, at cost; 74 shares
(2009) and 59 shares (2008) (134) (120)
Accumulated deficit in earnings (81,056) (78,557)
Accumulated other comprehensive income 4,935 4,709
------------- -------------
Total 3D Systems stockholders' equity 101,140 102,234
Noncontrolling interest 29 --
------------- -------------
Total Equity 101,169 102,234
------------- -------------
$ 142,143 $ 153,002
============= =============
3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2009 and 2008
(Unaudited)
Nine Months Ended
September 30,
-------------------
(in thousands) 2009 2008
-------- --------
Cash flows from operating activities:
Net loss attributable to 3D Systems $ (2,499) $ (8,003)
Net income attributable to noncontrolling
interest 29 --
-------- --------
Net loss (2,470) (8,003)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Deferred income taxes 153 29
Depreciation and amortization 4,341 4,953
Provision for bad debts 941 745
Stock-based compensation 936 1,144
Gain on the disposition of property and
equipment 151 --
Changes in operating accounts:
Accounts receivable 5,316 5,367
Inventories 744 (6,765)
Prepaid expenses and other current assets (468) 2,086
Accounts payable (4,367) (3,641)
Accrued liabilities (1,041) (2,320)
Customer deposits (116) 60
Deferred revenue (2,180) (1,510)
Other operating assets and liabilities 295 (71)
-------- --------
Net cash provided by (used in) operating
activities 2,235 (7,926)
-------- --------
Cash flows used in investing activities:
Purchases of property and equipment (634) (4,032)
Additions to license and patent costs (149) (352)
Proceeds from disposition of property and
equipment 34 --
-------- --------
Net cash used in investing activities (749) (4,384)
-------- --------
Cash flows provided by financing activities:
Restricted stock proceeds and stock options, net 242 1,091
Repayment of long-term debt (145) (376)
Repayment of short-term borrowings (3,085) --
Restricted cash 3,216 --
-------- --------
Net cash provided by financing activities 228 715
-------- --------
Effect of exchange rate changes on cash 103 25
-------- --------
Net increase (decrease) in cash and cash
equivalents 1,817 (11,570)
Cash and cash equivalents at the beginning of
the period 22,164 29,689
-------- --------
Cash and cash equivalents at the end of the
period $ 23,981 $ 18,119
======== ========
Supplemental Cash Flow Information:
Interest payments $ 474 $ 713
Income tax (receipts) payments (208) 637
Non-cash items:
Transfer of equipment from inventory to property
and equipment 461 4,899
Transfer of equipment to inventory from property
and equipment 341 1,597
Schedule 1
(Unaudited)
Following is a reconciliation of the numerator and denominator of the
basic and diluted net earnings (loss) per share computations:
Quarter Ended Nine Months Ended
September 30, September 30,
---------------- -----------------
(in thousands, except 2009 2008 2009 2008
per share amounts) ------- ------- ------- -------
Basic and diluted earnings (loss)
per share:
Basic earnings (loss) per share:
Numerator:
Net income (loss) $ 902 $ (989) $(2,499) $(8,003)
======= ======= ======= =======
Denominator:
Weighted average common shares
outstanding 22,627 22,366 22,504 22,348
======= ======= ======= =======
Basic net earnings (loss) per
share $ 0.04 $ (0.04) $ (0.11) $ (0.36)
======= ======= ======= =======
Diluted earnings (loss) per share:
Numerator:
Net income (loss) $ 902 $ (989) $(2,499) $(8,003)
======= ======= ======= =======
Denominator:
Weighted average common shares
outstanding 22,627 22,366 22,504 22,348
Effect of dilutive securities:
Stock options and restricted
stock awards 67 -- -- --
------- ------- ------- -------
Diluted weighted average shares
outstanding 22,694 22,366 22,504 22,348
======= ======= ======= =======
Diluted net earnings (loss)
per share $ 0.04 $ (0.04) $ (0.11) $ (0.36)
======= ======= ======= =======
CONTACT: 3D Systems Corporation
Investor Contact:
803-326-4010
MolbertA@3dsystems.com
Media Contact:
Katharina Hayes
803-326-3941
HayesK@3dsystems.com