EXHIBIT 99.1
3D Systems Earns 9 Cents per Share for First Quarter
Improved Revenue, Gross Margin and Operating Expenses
ROCK HILL, S.C., May 5, 2010 (GLOBE NEWSWIRE) -- 3D Systems Corporation (Nasdaq:TDSC) announced today that it earned 9 cents per share during the first quarter on a 32% revenue increase, 37% gross profit improvement and 4% lower operating expenses compared to the first quarter of 2009.
The company reported that its $2.0 million net income for the quarter included $1.8 million of non-cash expenses primarily related to depreciation and amortization expense.
During the quarter, the company generated $1.7 million of net cash, after using $3.0 million to fund strategic investing activities, ending with $26.6 million of available cash compared to $24.9 million at December 31, 2009.
The table below summarizes the company's key financial results.
| First Quarter | |||
| % | |||
| Change | |||
| Favorable | |||
| Operating Highlights | 2010 | 2009 | (Unfavorable) |
| Revenue | $31.6 | $24.0 | 32% |
| Gross profit % of Revenue | $14.3 45% | $10.5 44% | 37% |
| Operating expenses % of Revenue | $11.7 37% | $12.1 50% | 4% |
| Operating income (loss) | $2.7 | ($1.6) | NM |
| Net income (loss) | $2.0 | ($2.1) | NM |
| Basic and diluted earnings (loss) per share | $0.09 | ($0.09) | NM |
| Available cash | $26.6 | $23.4 | 14% |
| Depreciation & Amortization % of Revenue | $1.5 5% | $1.6 7% | 6% |
| NM: Not meaningful | |||
"We are pleased with the continued revenue recovery and improved earnings from the operating leverage in our P&L," said Abe Reichental, 3D Systems' President and Chief Executive Officer.
Systems revenue increased by $3.9 million compared to the 2009 quarter with 3-D Printer sales accounting for 54% of all systems revenue.
Materials sales grew by $3.0 million over the first quarter of 2009, indicating a continued recovery across the installed base.
The company reported 45% gross margin for the first quarter of 2010.
"We are pleased with our improving results and 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 first quarter of 2010 on Wednesday,May 5, 2010 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 700-488-32.
- 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 uncertain ties, 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 systems and parts solutions. Its expertly integrated solutions reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input. These solutions are used for design communication and prototyping as well as for production of functional end-use parts: Our customers Create With Confidence.
More information on the company is available at www.3DSystems.com, www.modelin3D.com, www.toptobottomdental.com, www.3Dproparts.com, www.dpt-fast.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 Ended March 31, 2010 and 2009 | ||
| (Unaudited) | ||
| Quarters Ended March 31, | ||
| (in thousands, except per share amounts) | 2010 | 2009 |
| Revenue: | ||
| Products | $ 22,397 | $ 15,489 |
| Services | 9,230 | 8,542 |
| Total revenue | 31,627 | 24,031 |
| Cost of sales: | ||
| Products | 11,004 | 7,937 |
| Services | 6,302 | 5,615 |
| Total cost of sales | 17,306 | 13,552 |
| Gross profit | 14,321 | 10,479 |
| Operating expenses: | ||
| Selling, general and administrative | 9,158 | 9,188 |
| Research and development | 2,505 | 2,898 |
| Total operating expenses | 11,663 | 12,086 |
| Operating income (loss) | 2,658 | (1,607) |
| Interest and other expense, net | 404 | 227 |
| Income (loss) before provision for income taxes | 2,254 | (1,834) |
| Provision for income taxes | 236 | 250 |
| Net income (loss) | 2,018 | (2,084) |
| Shares used to calculate basic earnings (loss) per share | 22,844 | 22,369 |
| Shares used to calculate diluted earnings (loss) per share | 23,122 | 22,369 |
| Basic and diluted net earnings (loss) per share (1) | $ 0.09 | $ (0.09) |
| (1) See Schedule 1 for the calculation of basic and diluted net loss per share. | ||
| 3D SYSTEMS CORPORATION | ||
| Condensed Consolidated Balance Sheets | ||
| March 31, 2010 and December 31, 2009 | ||
| (Unaudited) | ||
| March 31, | December 31, | |
| (in thousands) | 2010 | 2009 |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 26,636 | $ 24,913 |
| Accounts receivable, net | 21,709 | 23,759 |
| Inventories, net | 20,278 | 18,378 |
| Prepaid expenses and other current assets | 2,593 | 2,415 |
| Deferred income tax assets | 576 | 634 |
| Restricted cash | 54 | 54 |
| Total current assets | 71,846 | 70,153 |
| Property and equipment, net | 25,300 | 24,789 |
| Other intangible assets, net | 5,268 | 3,634 |
| Goodwill | 48,416 | 48,730 |
| Other assets, net | 3,033 | 3,097 |
| $ 153,863 | $ 150,403 | |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Current portion of capitalized lease obligations | $ 215 | $ 213 |
| Accounts payable | 14,218 | 12,994 |
| Accrued liabilities | 10,068 | 11,114 |
| Customer deposits | 534 | 627 |
| Deferred revenue | 8,159 | 8,487 |
| Total current liabilities | 33,194 | 33,435 |
| Long-term portion of capitalized lease obligations | 8,201 | 8,254 |
| Other liabilities | 3,790 | 3,944 |
| Total liabilities | 45,185 | 45,633 |
| Stockholders' equity: | ||
| Common stock, authorized 60,000 shares, issued and outstanding 23,038 shares (2010) and 22,774 shares (2009) | 23 | 23 |
| Additional paid-in capital | 180,166 | 177,682 |
| Treasury stock, at cost; 74 shares (2010) and 74 shares (2009) | (134) | (134) |
| Accumulated deficit in earnings | (75,473) | (77,491) |
| Accumulated other comprehensive income | 4,096 | 4,617 |
| Total 3D Systems stockholders' equity | 108,678 | 104,697 |
| Noncontrolling interest | -- | 73 |
| Total Equity | 108,678 | 104,770 |
| $ 153,863 | $ 150,403 | |
| 3D SYSTEMS CORPORATION | ||
| Consolidated Statements of Cash Flows | ||
| Quarters Ended March 31, 2010 and 2009 | ||
| (Unaudited) | ||
| Quarters Ended March 31, | ||
| (in thousands) | 2010 | 2009 |
| Cash flows from operating activities: | ||
| Net income (loss) | $ 2,018 | $ (2,084) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities : | ||
| Deferred income taxes | 41 | (121) |
| Depreciation and amortization | 1,511 | 1,607 |
| (Benefit of) provision for bad debts | (4) | 703 |
| Stock-based compensation | 267 | 389 |
| Loss on the disposition of property and equipment | 2 | -- |
| Changes in operating accounts: | ||
| Accounts receivable | 1,590 | 6,449 |
| Inventories | (1,982) | 472 |
| Prepaid expenses and other current assets | (165) | (827) |
| Accounts payable | 1,405 | (2,520) |
| Accrued liabilities | 92 | (1,612) |
| Customer deposits | (84) | (350) |
| Deferred revenue | (195) | (395) |
| Other operating assets and liabilities | 271 | (29) |
| Net cash provided by operating activities | 4,767 | 1,682 |
| Cash flows used in investing activities: | ||
| Purchases of property and equipment | (254) | (285) |
| Additions to license and patent costs | (118) | (37) |
| Acquisition of businesses | (2,600) | -- |
| Net cash used in investing activities | (2,972) | (322) |
| Cash flows provided by financing activities: | ||
| Restricted stock proceeds and stock options | 217 | 33 |
| Repayment of long-term debt | (52) | (49) |
| Repayment of short-term borrowings | -- | (3,085) |
| Restricted cash | -- | 3,198 |
| Net cash provided by financing activities | 165 | 97 |
| Effect of exchange rate changes on cash | (237) | (204) |
| Net increase in cash and cash equivalents | 1,723 | 1,253 |
| Cash and cash equivalents at the beginning of the period | 24,913 | 22,164 |
| Cash and cash equivalents at the end of the period | $ 26,636 | $ 23,417 |
| Supplemental Cash Flow Information: | ||
| Interest payments | $ 149 | $ 161 |
| Income tax payments | 125 | 67 |
| Non-cash items: | ||
| Transfer of equipment from inventory to property and equipment | 430 | 32 |
| Transfer of equipment to inventory from property and equipment | 369 | 33 |
| Issuance of stock for acquisition of businesses | 2,000 | -- |
| Schedule 1 | ||
| (Unaudited) | ||
| Following is a reconciliation of the numerator and denominator of the basic and diluted net earnings (loss) per share computations: | ||
| Quarters Ended March 31, | ||
| (in thousands, except per share amounts) | 2010 | 2009 |
| Basic and diluted earnings (loss) per share: | ||
| Basic earnings (loss) per share: | ||
| Numerator: | ||
| Net income (loss) | $ 2,018 | $ (2,084) |
| Denominator: | ||
| Weighted average common shares outstanding | 22,844 | 22,369 |
| Basic net earnings (loss) per share | $ 0.09 | $ (0.09) |
| Diluted earnings (loss) per share: | ||
| Numerator: | ||
| Net income (loss) | $ 2,018 | $ (2,084) |
| Denominator: | ||
| Weighted average common shares outstanding | 22,844 | 22,369 |
| Effect of dilutive securities: | ||
| Stock options and restricted stock awards | 278 | -- |
| Diluted weighted average shares outstanding | 23,122 | 22,369 |
| Diluted net earnings (loss) per share | $ 0.09 | $ (0.09) |
CONTACT: 3D Systems Corporation
Investor Contact:
Amanda Molbert
803-326-4010
MolbertA@3dsystems.com