EXHIBIT 99.1
3D SYSTEMS
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Elizabeth Goode, Director Marketing
(661) 295-5600, ext. 2632
goodee@3dsystems.com
Trudy Self, Self & Associates
(818) 880-5437
tmself@aol.com
3D SYSTEMS REPORTS THIRD QUARTER AND YEAR TO DATE RESULTS
RESULTS FROM RESTRUCTURING ON TRACK
VALENCIA, Calif., October 22, 2002 - 3D Systems Corp. (Nasdaq: TDSC) today
announced third quarter 2002 revenue of $28.4 million and a net loss of $1.8
million or $0.14 per fully diluted share compared with year ago revenue of $31.5
million and a net profit of $0.2 million or $0.02 per fully diluted share. Gross
margins, across all product lines, increased to 43% compared with 38% in the
first half of 2002.
Included in the third quarter results is a pretax charge of $3.0 million or
$0.15 per share (net of taxes) for severance, facility closure and relocation
costs related to the restructuring undertaken at the beginning of the third
quarter. The company also recorded a tax benefit of $2.2 million or $0.17 per
share related to the Vantico settlement recorded in the first quarter of 2002.
Revenue for the first nine months of 2002 totaled $84.4 million with net
income of $0.06 per fully diluted share compared with revenue of $84.5 million
and net income of $0.10 per fully diluted share a year ago. Included in the nine
month results are a pretax benefit associated with the Vantico arbitration
settlement of $18.5 million recorded in Q1 2002 and the impact of combining the
results of DTM Corporation for the first nine months of 2002.
During the quarter, senior bank debt was reduced $5.7 million as a result
of a favorable change made under the company's credit facility which eliminated
the requirement to maintain minimum cash balances. In addition, the total size
of its credit facility was reduced from $32.0 million to $26.3 million during
the third quarter.
"Overall, we have a good business with solid opportunities coming into
focus, with our Advanced Digital ManufacturingSM (ADM) solution. Our
initiatives, geared toward providing companies the solutions to reduce the costs
of production of short run parts, reduce warehouse space and minimize their
investments in working capital, continue to make progress. For example, in the
first nine months, we have placed 5 systems into Aerospace for end-use parts and
5 systems for use by Formula One and NASCAR companies for wind tunnel testing
and functional prototype manufacture and testing," stated Brian K. Service,
chief executive officer.
"We have also made good progress in materials research and development with
the announcement of a new series of metal materials for our SLS(R) systems and
another series of resins for our SLA(R) systems. These new materials, such as
Aluminum, A6 steel, Fire Retardant Nylon and resins that mimic Nylon 6:6, are
the critical element needed for ADM solutions to effectively compete with more
traditional processes," continued Service.
"During the third quarter we moved aggressively to reduce expenditures and
bring our costs more in line with current revenue levels and projections. These
actions were taken with the objective of achieving profitability in the 4th
quarter 2002," concluded Service.
As previously announced, 3D Systems will hold a conference call today to
discuss the first quarter 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 6159641.
ABOUT 3D SYSTEMS
Founded in 1986, 3D Systems, the solid imaging companySM, 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, 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 ManufacturingSM)
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; si2 is a trademark; 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,
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; the company's ability to enter into successful relationships with new
customers to fully exploit its products; the company's ability to successfully
implement all elements of its restructuring and cost savings program, and such
other factors as are described in the company's filings with the Securities and
Exchange Commission. The company does not undertake to update any
forward-looking statements.
###
Tables follow
3D SYSTEMS CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED) (AUDITED)
ASSETS 9/27/2002 12/31/2001
---------- ----------
Current Assets:
Cash and cash equivalents $ 1,032 $ 5,948
Accounts receiveable, less allowances for
doubtful accounts of $2,224 (2002) $2,710 (2001) 30,120 38,181
Current portion of lease receivables 391 498
Inventories 14,940 17,822
Deferred tax assets 5,764 5,271
Prepaid expenses and other current assets 2,878 2,817
---------- ----------
Total Current Assets 55,125 70,537
Property and equipment, net 15,785 17,864
Licenses and patent costs, net 13,646 12,314
Deferred tax assets 9,818 6,618
Lease receivables, less current portion 1,019 1,750
Acquired technology, net 8,018 9,192
Goodwill 43,598 44,158
Other Assets 2,951 3,572
---------- ----------
$ 149,960 $ 166,005
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of Credit $ 546 $ 6,151
Accounts payable 13,216 12,819
Accrued liabilities 10,373 15,681
Current portion of long-term debt 4,512 3,135
Customer deposits 904 1,624
Deferred revenues 12,623 13,697
---------- ----------
Total current liabilities 42,174 53,107
Deferred tax liabilities 4,888 4,210
Other liabilities 3,456 3,329
Long-term debt, less current portion 13,845 16,240
Subordinated debt 10,000 9,400
---------- ----------
74,363 86,286
---------- ----------
Stockholders'equity:
Preferred stock, authorized 5,000 shares, none issued
Common stock, authorized 25,000 shares, issued 12,931
and outstanding 12,706 (September 2002) and
issued 13,357 and outstanding 13,132 (December 2001) 13 13
Capital in excess of par value 86,363 93,173
Notes receivable from officers (59) (244)
Retained earnings (loss) (4,515) (5,263)
Accumulated other comprehensive loss (4,665) (6,420)
Treasury stock, at cost, 225 shares (2002 and 2001) (1,540) (1,540)
---------- ----------
Total stockholders' equity 75,597 79,719
---------- ----------
$ 149,960 $ 166,005
========== ==========
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
(in thousands except per share amounts)
(Unaudited)
Three Month Periods Ended Nine Month Periods Ended
9/27/2002 9/28/2001 9/27/2002 9/28/2001
------------ ----------- ------------ -----------
Sales:
Products $ 19,062 $ 22,440 $ 57,354 $ 60,327
Services 9,327 9,104 27,013 24,162
----------- ---------- ---------- ----------
Total sales 28,389 31,544 84,367 84,489
Cost of Sales:
Products 9,541 11,745 31,310 29,346
Services 6,701 6,280 19,898 17,509
----------- ---------- ---------- ----------
Total cost of sales 16,242 18,025 51,208 46,855
----------- ---------- ---------- ----------
Gross Profit 12,147 13,519 33,159 37,634
----------- ---------- ---------- ----------
Operating expenses:
Selling, general and administrative 11,129 10,001 35,072 28,001
Research and development 3,789 2,791 12,435 7,624
Severance and other restructuring cost 2,734 4,350
----------- ---------- ---------- ----------
Total operating expenses 17,652 12,792 51,857 35,625
----------- ---------- ---------- ----------
Income (loss) from operations (5,505) 727 (18,698) 2,009
Interest and other income (expense), net (629) (360) (1,997) (22)
Gain on arbitration settlement 18,464
----------- ---------- ---------- ----------
Income (loss) before provision for (6,134) 367 (2,231) 1,987
income taxes
Provision for (benefit from) income taxes (4,345) 136 (2,979) 735
----------- ---------- ---------- ----------
Net income (loss) $ (1,789) $ 231 $ 748 $ 1,252
=========== ========== ========== ==========
Shares used to calculate basic net
income(loss) per share 12,675 12,499 12,881 12,396
=========== ========== ========== ==========
Basic net income (loss) per share $ (0.14) $ 0.02 $ 0.06 $ 0.10
=========== ========== ========== ==========
Shares used to calculate diluted net
income (loss) per share 12,675 13,276 13,441 13,176
=========== ========== ========== ==========
Diluted net income (loss) per share $ (0.14) $ 0.02 $ 0.06 $ 0.10
=========== ========== ========== ==========