EXHIBIT 99.1
[3D SYSTEMS LETTERHEAD]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Frank Spina
Vice President & Chief Financial Officer
(805) 295-5600, Ext. 2216
spinaf@3dsystems.com
Carol Cerrato
Investor Relations
(805) 295-5600, Ext. 2252
cerratoc@3dsystems.com
3D SYSTEMS POSTS IMPROVED RESULTS
FOR THE FOURTH QUARTER AND FULL YEAR 1998
VALENCIA, Calif., Feb. 16, 1999 - 3D Systems Corporation (Nasdaq NMS:
TDSC) today reported that net income for the fourth quarter of 1998 totaled
$775,000, equal to 7 cents per share, compared to a net loss of $2.6 million, or
22 cents per share, in the corresponding quarter of the prior year.
In the 1997 quarter, the company incurred non-recurring charges amounting
to $2.1 million related primarily to inventory adjustments and the restructuring
of its European operations.
Fourth quarter 1998 revenues grew 10 percent to a record $27.3 million
from $24.7 million for the like period a year ago.
For the year ended December 31, 1998, net income rose to $2.1 million,
equal to 18 cents per share, compared with a net loss of $4.6 million, or 40
cents per share in 1997. Revenues for 1998 were a record $98.1 million, up 9
percent from $90.3 million in the prior year.
Arthur B. Sims, chairman and chief executive officer, commented: "3D
Systems made real progress in 1998. In addition to improved results, we advanced
our new products agenda, strengthened the balance sheet and positioned the
company for growth in the coming year and beyond.
- more -
3D Systems Announces Q4 and Year End Results
"Our strong fourth quarter results were highlighted by the highest
quarterly sales in company history, with product revenues accelerating briskly
from the third quarter level. Gross margin strengthened appreciably in the
quarter, reflecting favorable product mix. On the other hand, expenses were
impacted by a negative swing in foreign exchange due to the Deutsche Mark's gain
against the dollar."
For the year, the company shipped 225 systems compared to 274 units in
1997. However, product mix was more favorable this past year, and included a
higher percentage of high-end systems. Backlog at year-end 1998 totaled $8.8
million, up from $3.5 million one year earlier.
"European sales in full year 1998 were very strong," Sims said, "with
orders rising 38% from the previous year. Despite the region's economic turmoil,
Asia Pacific sales held essentially even with the 1997 level. U.S. sales showed
modest improvement, and we are investing significantly in new sales, marketing
and product initiatives to improve our performance."
Representing the most extensive and significant wave of new products in
company history, 3D Systems introduced an array of new generation materials
offering greater speed and improved mechanical properties; new high-performance,
user friendly Windows NT-based software; and, just last week, the most capable
solid imaging system ever available, the SLA 7000. Targeted at users with high
production requirements, the SLA 7000 offers excellent resolution in solid
object imaging and four times the productivity of the company's previous
flagship unit, the SLA 5000, according to Sims.
He noted strong initial customer interest in the SLA 7000 which he said
offers a very attractive price/performance proposition, but added that the
system will not provide significant benefit to the company's sales until the
second half of 1999 due to the high-end machine's longer acquisition cycle.
At year-end, 3D Systems' balance sheet showed cash and investments of
$19.4 million, up from $16.2 million at December 31, 1997. Inventories were down
and accounts receivable turnover improved from 1997.
"We have positioned the company to execute its growth strategy in the
coming year. The first half will be challenging due to a higher level of
investment in marketing. However, we look forward to improving results as the
year progresses, and believe that 1999 will be an important and successful year
for 3D Systems," Sims concluded.
- more -
3D Systems Announces Q4 and Year End Results
ABOUT 3D SYSTEMS
3D Systems provides solid imaging products and services that allow users
to move quickly from three-dimensional designs to finished parts, at a
significantly lower cost and higher quality than more traditional methods. The
company's systems, through patented stereolithography and 3D printing
technologies, fabricate solid objects from digital input. This process
substantially reduces the time and cost of product development, resulting in
shorter time to manufacturing and time to market. Based in Valencia, Calif., 3D
Systems was founded in 1986, and is recognized as the world leader in solid
imaging.
To obtain additional information about 3D Systems products and services,
call (888) 337-9786 (toll-free) and request extension 703, or visit the company
web site at www.3dsystems.com. For investor information, please call the 3D
Systems shareholder communications service at (800) 757-1799.
Except for the historical information contained in this news release, the
matters discussed include forward-looking statements that involve risks and
uncertainties including the availability and acceptance of new products, the
impact of competitive products and pricing, the ability of the company to
continue to contain expenses, dependence on key personnel, industrywide domestic
and international economic conditions, and other risks detailed in the company's
SEC reports Form 10-K for the year ended December 31, 1997.
# # # #
3D Systems and SLA are trademarks of 3D Systems, Inc. Windows NT is a trademark
of Microsoft Corporation.
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
ASSETS DECEMBER 31, 1997 DECEMBER 31, 1998
----------------- -----------------
Current assets:
Cash and cash equivalents $ 12,694,831 $ 15,911,793
Short-term investments 3,498,265 3,484,641
Accounts receivable, less allowances for
doubtful accounts of $441,399 (1997) and $944,144 (1998) 23,618,237 24,486,730
Current portion of lease receivables 1,257,006 2,069,126
Inventories 12,164,633 10,829,346
Deferred tax assets 3,319,651 2,063,163
Prepaid expenses and other current assets 2,305,163 1,916,149
-------------- ---------------
Total current assets 58,857,786 60,760,948
Property and equipment, net 16,895,011 16,327,078
Licenses and patent costs, net 5,464,351 5,120,672
Deferred tax assets 3,971,000 5,069,796
Lease receivables, less current portion 3,944,462 5,801,788
Other assets 2,207,109 2,022,316
-------------- ---------------
$ 91,339,719 $ 95,102,598
============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,885,831 $ 4,849,905
Accrued liabilities 8,814,193 8,161,683
Current portion of long-term debt 95,000 100,000
Customer deposits 238,248 330,162
Deferred revenues 6,514,868 9,013,559
-------------- ---------------
Total current liabilities 20,548,140 22,455,309
Other liabilities 1,491,534 1,485,378
Long-term debt, less current portion 4,705,000 4,605,000
-------------- ---------------
26,744,674 28,545,687
-------------- ---------------
Stockholders' equity:
Preferred stock, $.001 par value. Authorized 5,000,000
shares; none issued
Common stock, $.001 par value. Authorized 25,000,000
shares; issued 11,450,071 and outstanding 11,425,071 (1997)
and issued 11,614,317 and outstanding 11,389,317 (1998) 11,450 11,614
Capital in excess of par value 73,856,965 74,834,225
Notes receivable from officers --- (360,000)
Accumulated deficit (8,897,605) (6,765,446)
Cumulative translation adjustment (210,827) 376,459
Treasury stock, at cost, 25,000 shares (1997),
200,000 shares (1998) (164,938) (1,539,941)
-------------- ---------------
Total stockholders' equity 64,595,045 66,556,911
-------------- ---------------
$ 91,339,719 $ 95,102,598
============== ===============
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
For the Three Month Periods and Years Ended
December 31, 1997 and 1998
FOR THE THREE MONTH
PERIODS ENDED FOR THE YEAR ENDED
-------------------------- -----------------------------
1997 1998 1997 1998
------------ ------------ ------------ -------------
Sales:
Products $ 16,824,401 $ 19,526,996 $ 59,148,861 $ 65,434,369
Services 7,876,159 7,739,262 31,107,812 32,682,587
------------ ------------ ------------ -------------
Total sales 24,700,560 27,266,258 90,256,673 98,116,956
------------ ------------ ------------ -------------
Cost of sales:
Products 11,826,003 9,520,035 35,462,442 33,477,086
Services 5,374,159 5,391,009 21,744,779 22,062,222
------------ ------------ ------------ -------------
Total cost of sales 17,200,162 14,911,044 57,207,221 55,539,308
------------ ------------ ------------ -------------
Gross profit 7,500,398 12,355,214 33,049,452 42,577,648
------------ ------------ ------------ -------------
Operating expenses:
Selling, general and administrative 8,771,709 8,770,627 29,653,342 30,448,272
Research and development 2,390,359 2,597,951 10,990,809 9,424,979
------------ ------------ ------------ -------------
Total operating expenses 11,162,068 11,368,578 40,644,151 39,873,251
------------ ------------ ------------ -------------
Income (loss) from operations (3,661,670) 986,636 (7,594,699) 2,704,397
Other income 207,843 416,398 1,202,176 1,066,008
Other expense (127,877) (270,883) (356,203) (583,020)
------------ ------------ ------------ -------------
Income (loss) before provision for
income taxes (3,581,704) 1,132,151 (6,748,726) 3,187,385
Provision for income taxes (benefit) (1,019,464) 356,936 (2,159,592) 1,055,227
------------ ------------ ------------ -------------
Net income (loss) $ (2,562,240) $ 775,215 $ (4,589,134) $ 2,132,158
============ ============ ============ =============
Weighted average shares outstanding 11,439,226 11,388,162 11,397,529 11,347,778
============ ============ ============ =============
Net income (loss) per common share $ (0.22) $ 0.07 $ (0.40) $ 0.19
============ ============ ============ =============
Weighted average shares outstanding
and dilutive shares 11,439,226 11,509,915 11,397,529 11,593,557
============ ============ ============ =============
Net income (loss) per common share
assuming dilution $ (0.22) $ 0.07 $ (0.40) $ 0.18
============ ============ ============ =============