NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Elizabeth Goode, Director Marketing
(661) 295-5600, ext. 2632
goodee@3dsystems.com
Trudy Self, Investor Relations
Self & Associates
(909) 336-5685
tmself@aol.com
3D SYSTEMS ANNOUNCES Q3 AND NINE MONTHS 2003 RESULTS
VALENCIA, Calif. - November 10, 2003. 3D Systems Corp. (NASDAQ: TDSC)
announced today its results for the third quarter and first nine months of 2003.
Revenues for the quarter ended September 26, 2003 were $24.9 million
compared with revenues of $27.9 in the third quarter of 2002, a decrease of 11%.
Operating loss was $3.5 million compared with an operating loss of $5.7 million
in the 2002 period. Net loss available to common shareholders for Q3 2003 was
$4.3 million or $.34 per fully diluted share compared with a net loss available
to common shareholders of $2.2 million or $.17 per fully diluted share in the
prior year period.
Revenues for the first nine months of 2003 were $74.8 million compared with
revenues of $84 million in the 2002 nine month period, a decrease of 11%.
Operating loss for the first nine months of 2003 was $11.0 million compared with
an operating loss of $18.7 million in the 2002 period. Net loss available to
common shareholders for the first nine months of 2003 was $14.9 million or $1.17
per fully diluted share compared with net income available to common
shareholders of $850,000 or $.06 per fully diluted share in the first nine
months of 2002. Included in the results for the 2002 nine month period was a
gain of $18.5 million as a result of the Vantico arbitration settlement.
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3D SYSTEMS ANNOUNCES Q3 AND NINE MONTHS 2003 RESULTS
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"The end of the third quarter, marked the conclusion of a chapter in the
history of our company," said Abe Reichental, 3D Systems President and CEO.
"During my first 45 days at 3D Systems, I have reached out to a number of our
loyal customers and met or spoke with many of our outstanding employees and
investors. I came away confident in our ability to leverage all of our
privileged assets to deliver to our customers a steady stream of differentiated
value-added system solutions centered on improving our customers' bottom line,"
continued Reichental. "I truly appreciate all of the support given to me and the
company during this transition period and look forward to updating you on our
immediate plans as the fourth quarter unfolds." 3D Systems will hold a
conference call to discuss Q3 2003 results today at 4:30 p.m. Eastern Standard
Time (1:30 p.m. Pacific Standard Time). To access the call, dial 877/613-8341 or
706/679-7620 internationally. A recording of the call will be available two
hours after the completion of the call for 7 days. To access the recording, dial
800/642-1687 or 706/645-9291 internationally and enter 3789294, the conference
call ID number.
ABOUT 3D SYSTEMS
Founded in 1986, 3D Systems(R), the solid imaging companySM, provides solid
imaging products and systems solutions that reduce the time and cost of
designing products and facilitate direct and indirect manufacturing. Its systems
utilize patented proprietary technologies to create physical objects from
digital input that can be used in design communication, prototyping, and as
functional end-use parts.
3D Systems offers a wide range of imaging communication, rapid prototyping
and on demand manufacturing systems including the MJM product line (InVision 3-D
printer and ThermoJet(R) solid object printer), SLA(R) (stereolithography)
systems, SLS(R) (selective laser sintering) systems, and Accura(R) materials
(including photopolymers, metals, nylons, engineering plastics, and
thermoplastics).
More information on the company is available at www.3dsystems.com, or by
phoning 888/337-9786, or 661/295-5600 ext. 2882 internationally, or email
moreinfo@3dsystems.com
Note to editors: "the solid imaging company" is a service mark; and ThermoJet,
SLA, SLS, Accura, 3D Systems and the 3D logo are registered trademarks of 3D
Systems Inc.
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3D SYSTEMS ANNOUNCES Q3 AND NINE MONTHS 2003 RESULTS
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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; disruption
caused by the reconfiguration of the management team, the ability of the Company
to refinance its obligations U.S. Bank by November 28, 2003; 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.
Table follows:
3D SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 26, 2003 AND DECEMBER 31, 2002
(IN THOUSANDS)
(UNAUDITED)
ASSETS SEPTEMBER 26, 2003 DECEMBER 31, 2002
------------------ -----------------
Current assets:
Cash and cash equivalents $ 5,681 $ 2,279
Restricted cash 1,653 -
Accounts receivable, less allowances for
doubtful accounts of $2,125 and $3,068 18,470 27,420
Current portion of lease receivables 252 322
Inventories, net of reserves of $2,393 and $1,876 12,650 12,564
Prepaid expenses and other current assets 2,201 3,687
------------------- ------------------
Total current assets 40,907 46,272
Property and equipment, net 12,767 15,339
Licenses and patent costs, net 18,010 14,960
Lease receivables, less current portion,
net of allowance of $821 and $414 56 553
Acquired technology, net 6,442 7,647
Goodwill 44,666 44,456
Other assets, net 2,181 3,006
------------------- -----------------
$ 125,029 $ 132,233
=================== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 8,550 $ 2,450
Accounts payable 7,715 10,830
Accrued liabilities 14,890 15,529
Current portion of long-term debt 165 10,500
Customer deposits 614 801
Deferred revenues 13,406 14,770
------------------- -----------------
Total current liabilities 45,340 54,880
Other liabilities 3,313 3,397
Long-term debt, less current portion 3,925 4,090
Subordinated debt 10,000 10,000
------------------- ------------------
Total liabilities 62,578 72,367
------------------- ------------------
Authorized 5,000 preferred shares, Series A preferred stock,
authorized 1,000 shares, Series B redeemable preferred stock,
8% convertible, authorized 2,670 shares, issued and outstanding 2,634
shares in 2003, mandatory redemption in 2013 15,194 -
Stockholders' equity:
Common stock, authorized 25,000 shares, issued and
outstanding 12,734 and issued and outstanding 12,725 13 13
Capital in excess of par value 85,594 84,931
Notes receivable from officers for purchases of stock (19) (59)
Treasury stock (45) -
Preferred stock dividend (518) -
Accumulated deficit (35,831) (21,419)
Accumulated other comprehensive loss (1,937) (3,600)
------------------- --------------------
Total stockholders' equity 47,257 59,866
------------------- --------------------
$ 125,029 $ 132,233
=================== ====================
3D SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 26, 2003 AND SEPTEMBER 27, 2002
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------- ----------------------------
SEPTEMBER 27, SEPTEMBER 27,
SEPTEMBER 26, 2002 SEPTEMBER 26, 2002
2003 (AS RESTATED) 2003 (AS RESTATED)
------------- --------------- ------------- -------------
Sales:
Products $ 15,940 $ 18,587 $ 48,686 $ 56,958
Services 8,995 9,327 26,136 27,013
----------- ----------- ---------- -----------
Total sales 24,935 27,914 74,822 83,971
----------- ----------- ---------- -----------
Cost of Sales:
Products 8,661 9,303 26,705 31,044
Services 6,451 6,701 20,020 19,898
----------- ----------- --------- -----------
Total cost of sales 15,112 16,004 46,725 50,942
----------- ----------- --------- -----------
Gross profit 9,823 11,910 28,097 33,029
----------- ----------- --------- -----------
Operating expenses:
Selling, general and administrative 11,092 11,129 31,467 35,073
Research and development 2,017 3,709 7,180 12,344
Severance and other restructuring costs 223 2,734 474 4,351
----------- ----------- -------- -----------
Total operating expenses 13,332 17,572 39,121 51,768
----------- ----------- -------- -----------
Loss from operations (3,509) (5,662) (11,024) (18,739)
Interest and other expense, net 394 629 2,281 1,997
Gain on arbitration settlement - - - 18,464
----------- ----------- --------- -----------
(Loss) income before provision for income taxes (3,903) (6,291) (13,305) (2,272)
Provision for (benefit from) income taxes 78 (4,079) 1,109 (3,126)
----------- ----------- --------- -----------
Net (loss) income (3,981) (2,212) (14,414) 854
Preferred stock dividend 320 - 518 -
Net (loss) income available to common shareholders $ (4,301) $ (2,212) $ (14,932) $ 854
=========== =========== ========== ===========
Shares used to calculate basic net (loss) income
available to common shareholders per share 12,778 12,675 12,746 12,881
=========== =========== ========== ===========
Basic net (loss) income available to
common shareholders per share $ (0.34) $ (0.17) $ (1.17) $ 0.07
=========== =========== ========== ===========
Shares used to calculate diluted net (loss) income
available to common shareholder per share 12,778 12,675 12,746 13,441
=========== =========== ========== ===========
Diluted net (loss) income available to
common shareholders per share $ (0.34) $ (0.17) $ (1.17) $ 0.06
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