EXHIBIT 99.1
[OBJECT OMITTED]
NEWS RELEASE
FOR IMMEDIATE RELEASE
3D SYSTEMS REPORTS SECOND QUARTER AND FIRST HALF RESULTS
VALENCIA, Calif.--(BUSINESS WIRE)--July 17, 2002--3D Systems Corp. (Nasdaq:TDSC
- - NEWS) today announced second quarter 2002 revenue of $28.8 million and a net
loss of $6.0 million or $0.46 per fully diluted share compared with year ago
revenue of $25.0 million and a net loss of $0.3 million or $0.03 per fully
diluted share for 3D Systems prior to the acquisition of DTM Corporation. The
loss in Q2 2002 includes $1.9 million in severance and other restructuring
costs, $1.0 million in legal costs relating to the now completed Department of
Justice and DTM acquisition matter and other legal matters, and $1.0 million in
resin conversion costs.
Revenue and net income for the first six months of 2002 totaled $56.0 million
and $2.5 million or $0.18 per fully diluted share compared with revenue of $52.9
million and net income of $1.0 million or $0.08 per fully diluted share recorded
by 3D Systems prior to the acquisition of DTM for the first half of 2001.
Included in the first half results is a $18.5 million pretax benefit associated
with the Vantico arbitration settlement.
Stated Brian K. Service, "Companies worldwide appear to remain hesitant to
commit to purchasing major capital equipment, especially for use in traditional
rapid prototyping applications. The situation appears to be somewhat better in
the newer application areas of Advanced Digital Manufacturing(SM) which
accounted for 35% of revenue in the quarter, and the interest level in
developing ADM applications is high. Recurring revenues increased to 57%
compared to 55% in the prior year period, despite reduced resin revenue at 53%
of prior year.
"Our resin materials conversion program has been proceeding well ahead of plan
with margins also remaining above expectation. Currently, we estimate we are the
Number 1 supplier worldwide on a volume basis. We expect to introduce a number
of new materials in 2002 and across all platforms," continued Service.
"The company's transition, since completing the acquisitions of DTM and RPC
Ltd., the Vantico separation and now the agreement with the Department of
Justice to license our stereolithography technology in the U.S., continues in a
very difficult business environment. Business appears to have stabilized,
although at a lower level than expected. Accordingly, we have decided to further
consolidate
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and streamline operations, both here and in Europe, in line with current revenue
expectations. The former DTM facility in Austin, Texas will be closed and
European operations will be reorganized. Research and development operations
will be focused at Grand Junction, Colorado and Valencia, California. We expect
to announce further measures to reduce costs in the next few days," Service
said.
"Overall, we believe we have a solid business and a good opportunity for
long-term growth in ADM, but we must conserve our resources and control our
costs to operate more efficiently and effectively until the business environment
improves," he added.
As previously announced, 3D Systems will hold a conference call today to discuss
the first half results at 9:30 a.m. Eastern Daylight Time (6:30 a.m. Pacific
Daylight Time). To access the call, dial 877/613-8341 or 706/679-7620
internationally.
A recording of the call will be available for 72 hours beginning one hour after
the call ends. To access the recording, dial 800/642-1687 or 706/645-9291
internationally and enter 3756743.
About 3D Systems
Founded in 1986, 3D Systems, the solid imaging company(SM), provides solid
imaging products and solutions that reduce the time and cost of designing
products and facilitate direct and indirect manufacturing. Its systems utilize
patented technologies to create physical objects from digital input that can be
used in design communication, prototyping, and as functional end-use parts.
3D Systems currently offers the ThermoJet(R) solid object printer, InVision(TM)
si2(TM) 3-D printer, SLA(R) (stereolithography) systems, SLS(R) (selective laser
sintering) systems, and Accura(TM) materials (including photopolymers, metals,
nylons, engineering plastics, and thermoplastics).
3D Systems is the originator of the ADM (Advanced Digital Manufacturing(SM))
solution for manufacturing applications. ADM is the utilization of 3D Systems
solid imaging technologies to accelerate production of smaller volumes of
customized/specialized parts. A typical ADM center is expected to contain
multiple 3D Systems' SLA, MJM and/or SLS systems dedicated to full-time
manufacturing applications.
Product pricing in the U.S. ranges from $49,995, for the ThermoJet printer, to
$799,000 for the high-end SLA 7000 system. 3D Systems' multiple platform product
line enables companies to choose the most appropriate systems for applications
ranging from the creation of design communication models to prototypes to
production parts. More information on the company is available at
WWW.3DSYSTEMS.COM, or by phoning 888/337-9786, or 661/295-5600 ext. 2882
internationally. An investor packet can be obtained by calling 800/757-1799.
Note to editors: Advanced Digital Manufacturing and the solid imaging company
are service marks; InVision and si2 are trademarks; and ThermoJet, SLA, SLS,
Keltool and the 3D logo are registered trademarks of 3D Systems Inc.
Certain statements in this news release may include forward-looking statements
that 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,
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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; actions of competitors and customers; the company's ability to
successfully design and produce new products, customer acceptance of new
products; and such other factors as are described in the company's filings with
the Securities and Exchange Commission, including its annual report on Form 10-K
for the year ended December 31, 2001, its quarterly report on Form 10-Q for the
quarter ended March 29, 2002, and 3D Systems' current reports on Form 8-K filed
on March 21 and May 2, 2002. The company does not undertake to update any
forward-looking statements.
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
(in thousands)
6/28/02 12/31/01
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $6,696 $5,948
Accounts receivable, less allowances for
doubtful accounts of $3,145 (2002)
$2,710 (2001) 32,031 38,181
Current portion of lease receivables 391 498
Inventories 16,532 17,822
Deferred tax assets 4,388 5,271
Prepaid expenses and other current assets 2,981 2,817
-------- --------
Total current assets 63,019 70,537
Property and equipment, net 17,395 17,864
Licenses and patent costs, net 12,797 12,314
Deferred tax assets 6,618 6,618
Lease receivables, less current portion 1,150 1,750
Acquired technology, net 8,441 9,192
Goodwill 44,578 44,158
Other assets 3,160 3,572
-------- --------
$157,158 $166,005
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of Credit $5,524 $6,151
Accounts payable 13,112 12,819
Accrued liabilities 9,571 15,681
Current portion of long-term debt 3,517 3,135
Customer deposits 1,056 1,624
Deferred revenues 13,932 13,697
-------- --------
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Total current liabilities 46,712 53,107
Deferred tax liabilities 4,232 4,210
Other liabilities 3,567 3,329
Long-term debt, less current portion 14,665 16,240
Subordinated debt 10,000 9,400
-------- --------
79,176 86,286
-------- --------
Stockholders' equity:
Preferred stock, authorized
5,000 shares, none issued
Common stock, authorized 25,000 shares,
issued 12,869 and outstanding 12,644
(June 2002) and issued 13,357 and
outstanding 13,132 (December 2001) 13 13
Capital in excess of par value 85,884 93,173
Notes receivable from officers (99) (244)
Retained earnings (loss) (2,729) (5,263)
Accumulated other comprehensive loss (3,547) (6,420)
Treasury stock, at cost,
225 shares (2002 and 2001) (1,540) (1,540)
-------- --------
Total stockholders' equity 77,982 79,719
-------- --------
$157,158 $166,005
======== ========
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
(Unaudited)
(in thousands)
Three Month Six Month
Periods Ended Periods Ended
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
-------- -------- -------- --------
Sales:
Products $19,349 $17,201 $38,292 $37,887
Services 9,433 7,841 17,686 15,058
-------- -------- -------- --------
Total sales 28,782 25,042 55,978 52,945
-------- -------- -------- --------
Cost of sales:
Products 11,025 8,313 21,768 17,601
Services 6,883 5,818 13,197 11,229
-------- -------- -------- --------
Total cost of sales 17,908 14,131 34,965 28,830
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-------- -------- ------- --------
Gross profit 10,874 10,911 21,013 24,115
-------- -------- ------- --------
Operating expenses:
Selling, general
and administrative 12,974 9,081 23,943 18,000
Research
and development 4,787 2,649 8,645 4,833
Severance Costs 1,617 1,617
-------- -------- -------- --------
Total operating expenses 19,378 11,730 34,205 22,833
-------- -------- -------- --------
Income (loss)
from operations (8,504) (819) (13,192) 1,282
Interest and other
income (expense), net (668) 273 (1,369) 339
Gain on arbitration settlement 18,464 --
-------- -------- -------- --------
Income (loss) before
provision for
income taxes (9,172) (546) 3,903 1,621
Provision for income taxes (3,210) (202) 1,367 600
-------- -------- -------- --------
Net income (loss) $(5,962) $(344) $2,536 $1,021
======== ======== ======== ========
Shares used to calculate
basic net income
(loss) per share 12,845 12,393 12,986 12,344
======== ======== ======== ========
Basic net income
(loss) per share $(0.46) $(0.03) $0.20 $0.08
======== ======== ======== ========
Shares used to calculate
diluted net income
(loss) per share 12,845 12,393 14,445 13,125
======== ======== ======== ========
Diluted net income
(loss) per share $(0.46) $(0.03) $0.18 $0.08
======== ======== ======== ========
CONTACT:
3D Systems Corp.
Elizabeth Goode, 661/295-5600, ext. 2632
goodee@3dsystems.com
or
Self & Associates
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Trudy Self, 909/336-5685
tmself@aol.com