3D Systems (DDD) 8-K Results of Operations and Financial Condition

August 4, 2009

Conference Call
and Webcast

2

Participants

qChanda Hughes
Coordinator, Investor Relations

qAbe Reichental
President & Chief Executive Officer

qDamon Gregoire
Vice President & Chief Financial Officer

qBob Grace
Vice President & General Counsel

3

Welcome Webcast Viewers

qTo listen to the conference via phone and to ask questions
during our Q&A session, please dial:

n1-888-336-3485 in the United States

n1-706-634-0653 from outside the United States

nConfirmation Code:20863398

4

Forward-Looking Statements

Certain statements made in this presentation 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 which explicitly describe such risks and uncertainties, readers
are urged to consider statements in the future or conditional tenses or that include the terms
“believes,” “belief,” “estimates,” “expects,” “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.Forward-looking statements are
based upon management’s current expectations concerning future events and trends and are
necessarily subject to uncertainties, many of which are outside the control of the company. The factors
stated under the headings “Forward-Looking Statements,” “Cautionary Statements and Risk Factors,”
and “Risk Factors” that appear 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.

5

Operating Results

Abe Reichental
President & CEO

6

Factors Shaping 2Q09 Results

2Q09 vs 1Q09 Revenue Growth
	U.S.	Europe	AP	Total
Systems	28%	14%	15%	21%
Materials	16%	16%	(20%)	10%
Service	(17%)	(7%)	(50%)	(17%)
	7%	7%	(23%)	3%

qTotal systems’ revenue increased sequentially by $1.0 million

qTotal materials’ sales grew by $1.1 million sequentially

qWe commenced commercial shipments of our V-Flash® Desktop Printer to favorable
marketplace acceptance

nCommercial V-Flash® activities negatively affected our total gross profit margin by 2.1
percentage points for the quarter

qService revenue declined sequentially by 17% to $7.1 million primarily as a result of a
significant drop in maintenance and warranty revenue, reflecting the trailing 12-month
cumulative impact of the decline in large-frame systems revenue that began during the
first quarter of 2008

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	Q308	Q408	Q109	Q209
Total Operating Expenses	$14.3	$13.9	$12.1	$11.7
Gross Profit Margin	40%	44%	44%	44%
Cash	$18.1	$22.2	$23.4	$24.0
Inventory	$23.9	$21.0	$19.9	$19.1

Factors Shaping 2Q09 Results

qWe improved gross profit margin and reduced net loss for the second quarter of 2009 on
lower revenue and lower operating expenses

qWe reduced our net loss by 60% on a 33% revenue decline for the second quarter of
2009, reflecting the positive impact of our ongoing cost-control and profit-improvement
efforts

qOur net loss of $1.3 million included $2.1 million of non-cash expenses

qWe improved our cash position for the third consecutive quarter

nFor the first six months of 2009, we generated $1.8 million of net cash and finished
the period with $24.0 million of available cash

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Financial Review

9

Second-Quarter 2009 Operating Results($ Millions except per share amounts)

Operating Results	Second Quarter		% Change
	2009	2008	Favorable (Unfavorable)
Revenue	$24.7	$36.7	(33%)
Gross Profit	$10.8	$13.6	(20%)
% of Revenue	44%	37%
Operating Expenses	$11.7	$16.1	28%
% of Revenue	47%	44%
Net Loss	($1.3)	($3.3)	60%
Depreciation & Amortization	$1.4	$1.8	20%
% of Revenue	6%	5%
Fully Diluted Loss Per Share	($0.06)	($0.15)	60%

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Six Months 2009 Operating Results($ Millions except per share amounts)

Operating Results	Six Months		% Change
	2009	2008	Favorable (Unfavorable)
Revenue	$48.7	$68.4	(29%)
Gross Profit	$21.3	$26.3	(19%)
% of Revenue	44%	38%
Operating Expenses	$23.8	$32.8	28%
% of Revenue	49%	48%
Net Loss	($3.4)	($7.0)	52%
Depreciation & Amortization	$3.0	$3.1	3%
% of Revenue	6%	5%
Fully Diluted Loss Per Share	($0.15)	($0.31)	52%

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2Q 2009 Revenue Mix By Category and Region

5

10

15

20

25

30

35

0

40

2009

2008

2009

2008

Europe

24%

47%

29%

$24.7

44%

41%

15%

$36.7

46%

44%

10%

$24.7

$36.7

25%

31%

44%

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Service Revenue Trends

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Second-Quarter 2009 Gross Profit Margin($ Millions)

*NM = Not Meaningful

*Columns may not add due to rounding

qItems favorably affecting gross profit margin:

nSupply chain efficiencies and cost reduction measures

nMovement in 3Q 2008 of certain third-party logistics activities in-house

nReduction in field service costs

qItems negatively impacting gross profit margin:

qOverhead absorption on lower revenue

qImpact of the initial commercialization of the V-Flash® Desktop Printer

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Six Months 2009 Gross Profit Margin($ Millions)

*NM = Not Meaningful

*Columns may not add due to rounding

qItems favorably affecting gross profit margin:

nSupply chain efficiencies and cost reduction measures

nMovement in 3Q 2008 of certain third-party logistics activities in-house

nReduction in field service costs

nSale of system upgrades

oItems negatively impacting gross profit margin:

qOverhead absorption on lower revenue

qImpact of the initial commercialization of the V-Flash® Desktop Printer

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Second-Quarter 2009 Operating Expenses
($ Millions)

Expect second half of 2009 SG&A to be in the range of $17-19 million and R&D in
the range of $5-6 million.

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Six Months 2009 Operating Expenses
($ Millions)

Expect second half of 2009 SG&A to be in the range of $17-19 million and R&D in
the range of $5-6 million.

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Working Capital Management

40

60

80

100

120

140

160

Days Inventory On Hand

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

64

68

63

65

63

70

66

68

131

100

93

121

102

100

125

60

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Inventory
($000’s)

We are continuing to focus on achieving additional inventory reductions.

qInventory decrease from the fourth-quarter 2008 resulted from:

n$1.9 million decrease in finished goods inventory

qReduced materials inventory

qReduced spare parts inventory

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2009 Available Cash

qAvailable cash increased for the third consecutive quarter due to:

qInventory reductions

qCost reductions

qImproved cash management

qOperating activities provided $2.3 million cash

qNo debt except for capital leases

Expect our capital expenditures for the second half of 2009 to be in

the range of $0.5-1.5 million.

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Progress Report

Abe Reichental
President & CEO

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V-Flash® Desktop 3-D Printer Available For Purchase

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7 hours 45 minutes

27 hours 42 minutes

Comparable Competitor

For a detailed competitive comparison visit www.modelin3d.com.

The “V” in V-Flash® Stands For Value

qPriced at 65% of a comparably equipped competitive model

qBuilds 4 times faster with a 68% greater build volume

qProduces finer details, features and smoother walls

qPlatform costs 20% less than comparable competitor’s platform

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Revenue Growth Drivers

qWe entered the second half of
2009 with a stronger sales funnel.

qWe anticipate continued growth of
dental manufacturing solutions.

qWe believe that sales of our
expanding lineup of 3-D printers
will continue to grow.

qWe expect growth from our new
MQast™ on-line service.

qWe believe that new materials like
our DuraForm® FR 100 will create
additional part demand.

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Looking Ahead: Revenue Outlook

qWhile the near-term economic outlook remains uncertain, we
believe that market conditions may have begun to stabilize and
our revenue decline may have bottomed out during the first
quarter of this year.

qBased on historical performance, we expect that the third
quarter might be a seasonally weak period, but qualitatively, we
are observing some signs that conditions may improve.

qWe anticipate slower materials’ revenue growth for the
remainder of 2009.

qNotwithstanding continued upgrade sales, we expect service
revenue to lag in its recovery behind systems and materials.

qWe expect to benefit competitively from our new and expanded
product portfolio and stronger financial position.

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Looking Ahead: Operating Expenses And Cash

Should it become necessary as a result of further deterioration of the global
economic conditions, we will take further actions to reduce operating
expenses and conserve cash.

qWe expect our gross profit margin to remain strong, notwithstanding lower
revenue, and a negative 2-4 percentage point drag from initial V-Flash® shipments
and adverse systems mix

oWe expect SG&A to be in the range of $17-19 million for the second half of 2009

nInclusive of our anticipated higher litigation expenses for 2009

oWe expect R&D spending for the second half of 2009 to be in the range of$5-6
million without impairing our pace and rate of planned new product introductions

oWe anticipate our capital spending to be in the range of $0.5-1.5 million for the
second half of 2009

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Bottom Line

We remain committed to our long-term growth objectives

and are confident in our ability to provide value to our customers

and stockholders.

qOur funnel of new opportunities for the remainder of 2009 is
stronger.

qOur new lineup of 3-D Printers,3rd GenerationDirect Rapid
Manufacturing Centers and Materials should help drive
demand for our products.

qOur business model is built around significant, recurring
revenue components that have begun to generate improved
contribution margins.

qGiven the progress we have made over the past three quarters,
we are confident in our ability to execute on our growth
plan.

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Out of respect for other conference call
participants, please ask one question and then
return to the queue to ask additional questions.

Please direct all questions through the
teleconference portion of this call.

To ask questions:

• Phone: 1-888-336-3485

• International: 1-706-634-0653

• Confirmation Code:20863398

Question and Answer Session

28

A replay of this webcast will be
available approximately three
hours after the call on the 3D
Systems Investor Relations Web
site, www.3dsystems.com/ir.

Thank You For Participating