Discussion of
Acu-Cast Acquisition and
Acu-Cast Acquisition and
Launch of 3Dproparts™
October 1, 2009
Conference Call
and Webcast
and Webcast
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Participants
Amanda MolbertCoordinator, Investor Relations
Abe ReichentalPresident & Chief Executive Officer
Damon GregoireVice President & Chief Financial Officer
Bob GraceVice President & General Counsel
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Welcome Webcast Viewers
To listen to the conference via phone and to ask questionsduring our Q&A session, please dial:
1-888-336-3485 in the United States 1-706-634-0653 from outside the United States Confirmation Code: 32977598
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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.
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.
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We acquired Acu-Cast Technologies, LLC, a leading provider ofrapid prototyping and manufacturing services.
We launched 3Dproparts™, the world’s largest rapidprototyping and direct rapid manufacturing parts services.
Announced Growth Initiatives
3D Systems Acquires Acu-Cast Technologies
Acu-Cast Technologies is: A leading provider of rapid prototypingand manufacturing services
A preferred supplier to numerousconsumer goods, automotive and
medical instrument companies
Known in the industry for its skill atproducing precision plastic and metal
parts
A specialist in simulated die castingusing the Rubber Plaster Mold process
of casting aluminum and zinc
We expect this acquisition to be accretiveto our future operating income.
3Dproparts™ Powered By 3D Systems
Today, we launched 3Dproparts™, the world’s largest Rapid Prototypingand Direct Rapid Manufacturing parts service.
3Dproparts™ delivers to our customers the broadest range of precisionplastic and metal parts and assemblies produced from the widest range of
production and additive grade materials on the latest Additive and
Traditional Manufacturing systems.
As part of our new 3Dproparts™ service, we plan to invite all existingPreferred Service Providers and leading service bureaus to use
3Dproparts™ as their comprehensive order-fulfillment center.
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3Dproparts™ Empowers You To Create With Confidence
3Dproparts™ can handle any customerproject - large or small - completely within
our facilities
Delivering quality precision real-parts Made from production and additive gradeplastics and metals
With speed and efficiency Powered by 3D Systems’ latest generation ofPro systems and materials
Complemented by Acu-Cast Technologies’years of part-building expertise
3Dproparts™ provides our customers withthe ultimate one-stop shop for all their
design, prototyping and manufacturing
needs.
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3Dproparts™ Provides Choices For Your Success
3Dproparts™ employs instant 24/7 onlinequoting-and-ordering site
www.3Dproparts.com.
3Dproparts™ offers customers a full choiceof additive and traditional parts
produced in-house on the latest generation equipment from a comprehensive range of plastic andmetal production grade materials
3Dproparts™ has the capacity to handle allof its customers’ peak demand
requirements and to deliver the same
quality service seven days a week.
Looking Ahead
Integrate our RapidManufacturing Centers in Rock
Hill, South Carolina and
Darmstadt, Germany into our
3Dproparts™ service
Grow this activity organicallythrough meeting customer
needs and additional strategic
acquisitions
Deploy our latest proprietarymanufacturing capabilities in
our 3Dproparts™ service for
the benefit of our customers
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Operating Expectations Second-Half 2009
We expect this acquisition to be accretive to our operating income.
We expect fourth quarter revenue to benefit incrementally as a result of thisacquisition.
We expect our post-acquisition gross profit margin to remain strong, notwithstandingoverall lower revenue this year and a negative 2-4 percentage point drag from initial
V-Flash® shipments and adverse systems mix that we have previously disclosed.
We expect post-acquisition SG&A expenses for the second half of 2009 to be withinthe range of $17.5-19.0 million, an increase of $0.5-1.0 million from our
previously announced range.
Inclusive of our anticipated higher litigation expenses for 2009 We expect R&D spending for the second half of 2009 to remain within our previouslyannounced range of $5-6 million without impairing our pace and rate of planned
new product introductions.
We expect our post-acquisition cash position to resume its growth.
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3-D Printers
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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.
ability to provide value to our customers and stockholders.
With these growth initiatives in place, our funnel of newopportunities for the remainder of 2009 is stronger.
Our 3 pillars of business: Parts, Printers and ProductionSystems should help drive demand for our products by OEMs.
Our business model is built around significant, recurringrevenue components that have begun to generate improved
contribution margins.
Given 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:
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: 32977598
Question and Answer Session
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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.
available approximately three
hours after the call on the 3D
Systems Investor Relations Web
site, www.3Dsystems.com/ir.
Thank You For Participating