CONTACT:
Mary E. Woods FOR IMMEDIATE RELEASE
Investor Relations
805/295.5600 Ext. 2508
3D SYSTEMS ANNOUNCES THIRD QUARTER RESULTS
VALENCIA, Calif., October 22, 1997--3D Systems Corporation
(Nasdaq-NMS :TDSC) announced today that third quarter revenues increased 13
per cent to a record $22.3 million from $19.8 million a year ago.
During the quarter, the company incurred one-time charges amounting
to $3.1 million. The write-offs included in-process R & D related to the
acquisition of assets from EOS GmbH of Germany, 3D's principal European
competitor, restructuring expenses, and inventory adjustments stemming
primarily from the transition to a new generation of products announced in
the quarter.
After giving effect to these items, the company posted a net loss
for the quarter of $2.1 million, or 19 cents a share, compared with net
income of $1.0 million, or nine cents a share, in the prior year. The
comparable 1996 quarter included a charge of $430,000 from 3D's acquisition of
Keltool, Inc.
For the nine months, revenues rose 14 per cent to a record $65.6
million from $57.5 million in 1996. Including the third quarter nonrecurring
charges, the net loss for the period amounted to $2 million, or 18 cents a
share, compared with net income of $2.9 million, or 25 cents a share, a year
ago.
According to Arthur B. Sims, chairman and chief executive officer,
"14 of the new high-performance SLA-5000 rapid prototyping systems were shipped
in the final weeks of the quarter and we are pleased with the market reaction
to the announcement of this new product generation."
Commenting on the company's business internationally, he said: "In
Europe, the EOS acquisition has already enabled us to convert three former
EOS customers to 3D products and we are looking forward to adding additional
new accounts, including recurring sales of maintenance service and supplies
to the EOS customer base.
"Our business in the Asia-Pacific market continues to expand
rapidly. Sales increased more than 200 per cent from the quarter a year ago,
putting us ahead 120 per cent year-to-date."
Sims concluded: "In the United States, our largest market, the
orders flow increased sharply over last year's third quarter and, while U.S.
orders are not yet at a satisfactory level, we are pleased with the
improvement in the third quarter."
3D Systems develops, manufactures and markets solid-imaging systems
that substantially reduce the time and costs of bringing new products to
market by quickly fabricating mechanical parts after they are designed by
engineers using CAD computer systems. Major applications include rapid
prototyping and tooling for products in a variety of manufacturing industries,
including automotive, aerospace, medical, computer, electronic and consumer
products.
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For current investor information, please call our shareholder communications
service at 800.757.1799 or visit our Web site at http://www.3dsystems.com.
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
ASSETS (Unaudited)
December 31, 1996 September 26, 1997
------------------- ------------------
Current assets:
Cash and cash equivalents $ 24,356,441 $12,152,612
Restricted cash 722,000 625,000
Short-term investments 3,759,492 1,997,422
Accounts receivable, less allowances for doubtful 19,601,383 24,179,010
accounts $406,178 (1996) and $282,835 (1997)
Current portion of lease receivables 987,362 1,131,797
Inventories 12,309,588 14,660,774
Deferred tax assets 2,958,227 3,401,670
Prepaid expenses and other current assets 2,332,337 3,131,339
------------------- ------------------
Total current assets $ 67,026,830 $61,279,624
Property and equipment, net 14,452,504 17,782,283
Licenses and patent costs, net 3,660,568 5,212,879
Deferred tax assets 1,821,000 1,821,000
Lease receivables, less current portion and
allowance for doubtful accounts of $150,000 (1997) 3,773,573 3,499,916
Other assets 1,504,382 2,300,286
------------------- ------------------
$ 92,238,857 $91,895,988
=================== ==================
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable $ 3,805,930 $4,542,068
Accrued liabilities 6,890,343 8,350,143
Current portion of long-term debt 100,000 95,000
Customer deposits 894,111 563,321
Deferred revenues 5,572,892 6,139,515
------------------- ------------------
Total current liabilities 17,263,276 19,690,047
Other liabilities 1,472,991 1,425,988
Long-term debt, less current portion 4,800,000 4,705,000
------------------- ------------------
25,536,267 25,821,035
------------------- ------------------
Stockholder's equity:
Preferred stock, $.001 par value.
Authorized 5,000,000 shares; none issued
Common stock, $.001 par value. Authorized
25,000,000 shares; issued and outstanding
11,342,826 (1996) and issued 11,415,022
(1997) 11,359 11,415
Capital in excess of par value 72,527,768 73,508,998
Retained earnings (deficit) (4,308,471) (6,335,365)
Cumulative translation adjustment 471,934 (945,157)
Treasury stock, at cost 25,00 shares -- (164,938)
------------------- ------------------
Total stockholders' equity 68,702,590 66,074,953
------------------- ------------------
$ 92,238,857 $91,895,988
=================== ==================
3D SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Month Periods Ended Nine Months Periods Ended
----------------------------------------- -----------------------------------------
September 27, 1996 September 26, 1997 September 27, 1996 September 26, 1997
---------------------------------------------------------------------------------------
Sales:
Products $ 12,594,576 $ 14,615,138 $ 38,194,461 $ 42,324,460
Services 7,195,039 7,678,718 19,317,066 23,231,653
------------------ ------------------ ------------------ ------------------
Total Sales 19,789,615 22,293,856 57,511,527 65,556,113
------------------ ------------------ ------------------ ------------------
Cost of sales:
Products 5,888,696 8,637,195 17,472,167 23,636,439
Services 4,403,358 5,231,937 12,071,149 16,370,620
------------------ ------------------ ------------------ ------------------
Total cost of sales 10,292,054 13,869,132 29,543,316 40,007,059
------------------ ------------------ ------------------ ------------------
Gross profit 9,497,561 8,424,724 27,968,211 25,549,054
------------------ ------------------ ------------------ ------------------
Operating expenses:
Selling, general and 6,077,601 7,320,339 18,505,355 20,881,633
administrative
Research and development 2,220,936 4,658,723 5,872,443 8,600,450
------------------ ------------------ ------------------ ------------------
Total operating expenses 8,298,537 11,979,062 24,377,798 29,482,083
------------------ ------------------ ------------------ ------------------
Income (loss) from operations 1,199,024 (3,554,338) 3,590,413 (3,933,029)
Interest income 361,794 308,663 1,194,088 994,333
Interest expense (34,753) (101,123) (46,251) (228,326)
Income (loss) before provision
for income taxes 1,526,065 (3,346,798) 4,738,250 (3,167,022)
Provision for income taxes (benefit) 510,661 (1,212,039) 1,800,535 (1,140,128)
------------------ ------------------ ------------------ ------------------
Net income (loss) $ 1,015,404 $ (2,134,759) $ 2,937,715 $ (2,026,894)
================== ================== ================== ==================
Net income (loss) per share $ .09 $ (.19) $ .25 $ (.18)
================== ================== ================== ==================
Weighted average number of
common and equivalent shares
outstanding during
the period 11,696,778 11,410,734 11,762,742 11,382,533
================== ================== ================== ==================