EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Jeff Krinks, Public Relations Manager
(661) 295-5600, ext. 2910
krinksj@3dsystems.com
Trudy Self, Self & Associates
(818) 880-5437
tmself@aol.com
3D Systems Announces Fourth Quarter and 2001 Results
VALENCIA, Calif., Feb. 20, 2002 - 3D Systems Corp. (Nasdaq: TDSC) today
announced fourth quarter 2001 revenue of $36.7 million compared with $31.7
million in the fourth quarter of 2000, an increase of 16%. Total revenue for
2001 was $121.2 million compared with 2000 revenue of $109.7 million, an
increase of 11%.
Net loss for the fourth quarter of 2001 was $2.6 million or 20 cents per
diluted share compared with net income of $2.4 million or 18 cents per diluted
share in the fourth quarter of 2000. Net loss for 2001 was $1.3 million or 11
cents per diluted share compared with net income of $8.1 million or 63 cents per
diluted share in 2000.
"The fourth quarter and 2001 revenue represents a record for the company
and is directly attributable to incorporating the results of the SLS(R) product
line acquired in August 2001 through the acquisition of DTM Corp.," said Brian
K. Service, president and CEO. "Comparing our fourth quarter results for 2001
with the results of the combined companies' for the fourth quarter of 2000 shows
a reduction in revenue of 16%. Using a similar comparison, the fourth quarter
gross profit margin was 43% compared with 49% in the fourth quarter of 2000.
"While total fourth quarter SLA(R) and SLS unit sales were consistent with
the prior-year levels, the decrease in revenue and gross margins from operations
primarily is a result of fewer unit sales of high-end SLA systems. Decreased
resin revenues also contributed to the lower revenue and gross margins," Service
said.
Total operating expenses for the fourth quarter of 2001 were $18.8 million,
including approximately $2 million of non-recurring costs associated with the
completion of the integration of DTM, $1 million for additional accounts
receivable reserves, and approximately $700,000 in legal fees resulting from the
Vantico arbitration.
"During the fourth quarter of 2001, the integration of DTM's operations
substantially was completed, with the assembly operations, finance and
administration, and sales and service organizations being combined into 3D
Systems' existing business," Service added. "We are pleased with the
contribution that the SLS line of business has made to 3D Systems' overall
business since the acquisition. This product line and its potential
applications, especially relating to advanced digital manufacturing, is expected
to provide significant ongoing opportunities for the company in 2002 and
beyond."
"We made significant improvements in our working capital position during
the quarter, reducing inventory by more than $5 million and accounts receivable
by $3.5 million," said E. James Selzer, senior vice president and CFO. "This
allowed us to reduce by $4 million the total debt incurred to fund the
acquisition of DTM. Improving our working capital position and reducing our debt
level continues to be a primary focus in 2002."
"During 2001 significant acquisitions of new technologies and capabilities
were integrated into the company. In addition, the general economic conditions
in the second half of the year, the effects of the events surrounding September
11, the Department of Justice antitrust action, and the Vantico contract
termination provided additional challenges for the company," Service said.
"Moving into 2002, we expect that the resolution of the divestiture
required by the Department of Justice, the conclusion of the Vantico
arbitration, and the transition to our own stereolithography resin supply,
coupled with the completion of the integration of our acquisitions, will be
reflected in the company's results," Service concluded.
As previously announced, 3D Systems will hold a conference call today at
9:30 a.m. Eastern time to discuss the 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 noon Eastern time the same day. The
recording can be accessed by dialing 800/642-1687 or 706/645-9291
internationally and entering 3241981.
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)
(stereolithography) systems and SLS(R) (selective laser sintering) systems, 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 inserts, and currently is developing systems that use
composite paste materials for direct manufacturing.
More information on the company is available at www.3dsystems.com, or by
phoning 888/337-9786, extension 807, 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 which 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: the funding of
amounts of capital adequate to provide for the working capital needs of the
company; world economic conditions including the unknown effects of the
continuing U.S. military action; our ability to realize the anticipated benefits
from the acquisition of DTM Corp., actions of competitors and customers,
including the selected licensee of the company's patents as required by the
proposed Final Judgment in the Department of Justice action; compliance with the
terms of the agreement extending the termination dates of our agreements with
Vantico, reliance on single or limited suppliers, the ability to timely and
cost-effectively develop resins adequate for use with 3D Systems' products and
which are commercially accepted, 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 for the year ended Dec. 31, 2000, quarterly reports on Form
10-Q for the quarters ended March 31, June 30 and Sept. 30, 2001, and 3D
Systems' current reports on Form 8-K filed on April 6, April 10, Sept. 4 and
Nov. 5, 2001.
Table follows
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
(in thousands)
ASSETS 12/31/2001 12/31/00
------------ -----------
Current assets:
Cash and cash equivalents $ 5,948 $ 18,999
Accounts receivable, less allowances for
doubtful accounts of $2,710 and $1,599, respectively 38,181 33,304
Current portion of lease receivables 498 1,497
Inventories 17,822 14,945
Deferred tax assets 4,027 2,824
Prepaid expenses and other current assets 2,867 3,496
------------ -----------
Total current assets 69,343 75,065
Property and equipment, net 17,864 13,141
Licenses and patent costs, net 12,314 8,417
Deferred tax assets 4,705 5,210
Lease receivables, less current portion 1,750 3,629
Acquired technology, net 9,192 -
Goodwill 40,660 -
Other assets 3,572 4,435
------------ -----------
$ 159,400 $ 109,897
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 14,036 $ 8,264
Accrued liabilities 11,341 9,574
Current portion of long-term debt 11,332 120
Customer deposits 1,624 1,087
Deferred revenues 13,697 11,471
------------ -----------
Total current liabilities 52,030 30,516
Other liabilities 1,711 3,210
Long-term debt, less current portion 16,240 4,375
Subordinated debt 9,700 -
------------ -----------
79,681 38,101
------------ -----------
Stockholders' equity:
Preferred stock, authorized 5,000 shares, none issued
Common stock, authorized 25,000 shares, issued 13,351
and outstanding 13,126 (2001) and issued 12,423
and outstanding 12,198 (2000) 13 12
Capital in excess of par value 93,173 81,568
Notes receivable from officers (244) (330)
Accumulated deficit (5,263) (3,922)
Accumulated other comprehensive loss (6,420) (3,992)
Treasury stock, at cost, 225 shares (2001 and 2000) (1,540) (1,540)
------------ -----------
Total stockholders' equity 79,719 71,796
------------ -----------
$ 159,400 $ 109,897
============ ===========
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
(Unaudited)
(in thousands)
Three Month Periods Ended Years Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
------------ ------------ ------------ ------------
Sales:
Products $ 26,714 $ 24,247 $ 87,042 $ 80,246
Services 10,021 7,452 34,182 29,429
------------ ----------- ----------- -----------
Total sales 36,735 31,699 121,224 109,675
------------ ----------- ----------- -----------
Cost of sales:
Products 13,542 10,668 42,888 35,084
Services 7,452 5,733 24,961 21,729
------------ ----------- ----------- -----------
Total cost of sales 20,994 16,401 67,849 56,813
------------ ----------- ----------- -----------
Gross profit 15,741 15,298 53,375 52,862
------------ ----------- ----------- -----------
Operating expenses:
Selling, general and administrative 15,761 9,709 43,761 32,710
Research and development 3,086 1,924 10,710 7,814
------------ ----------- ----------- -----------
Total operating expenses 18,847 11,633 54,471 40,524
------------ ----------- ----------- -----------
Income (loss) from operations (3,106) 3,665 (1,096) 12,338
Interest and other expense, net (1,010) 63 (1,033) 115
------------ ----------- ----------- -----------
Income (loss) before provision (benefit)
for income taxes (4,116) 3,728 (2,129) 12,453
Provision (benefit) for income taxes (1,523) 1,342 (788) 4,309
------------ ----------- ----------- -----------
Net income (loss) $ (2,593) $ 2,386 $ (1,341) $ 8,144
============ =========== =========== ===========
Shares used to calculate basic net
income (loss) per share 13,105 12,128 12,579 11,851
============ =========== =========== ===========
Basic net income (loss) per share $ (0.20) $ 0.20 $ (0.11) $ 0.69
============ =========== =========== ===========
Shares used to calculate diluted net
income (loss) per share 13,105 13,189 12,579 12,889
============ =========== =========== ===========
Diluted net income (loss) per share $ (0.20) $ 0.18 $ (0.11) $ 0.63
============ =========== =========== ===========