3D
Systems Reports Second Quarter Operating Results
Contact: VALENCIA, Calif., July 22, 1999 - 3D Systems Corp. (Nasdaq NMS: TDSC) today reported a net loss of $3.7 million, or 32 cents a share, for the second quarter ended July 2, which included non-recurring charges of $2.7 million, on revenue of $22 million. Without these non-recurring charges, the company would have reported a net loss of $1.7 million, or 15 cents a share. Last year, the company reported second quarter net income of $.5 million, or 4 cents a share, on revenue of $24.7 million. The non-recurring charges included in this year's second quarter related primarily to corporate restructuring and previously-announced management changes, the write off of certain impaired assets and idle facilities, and litigation and settlement costs. For the first six months of this year, the company posted a net loss of $5.9 million, or 52 cents a share, on revenue of $44.7 million. This compares to net income of $.9 million, equal to 8 cents a share, on revenue of $47.5 million a year ago. Arthur B. Sims, Chairman and Chief Executive Officer, stated: "3D Systems continues to confront challenging sales conditions in its domestic market. We are, however, encouraged by performance internationally. Both in Europe and Asia Pacific, quarterly product sales increased significantly, both sequentially and year-over-year." Gross
Profit, Product Mix "We are seeing indications of a product transition dilemma. The introduction earlier in the year of 3D Systems' flagship SLA™ 7000 has resulted in disruption of the order flow for our large-frame systems as customers pause to evaluate their hardware requirements," Sims stated. "We view this as a short-term occurrence and expect product-mix ratios to normalize moving forward. "The slowdown in large-frame units constrained service revenue and gross profit, as well, by resulting in lower training and service revenue," he indicated. Operating
Expense Improvement Balance
Sheet He continued: "Inventory levels increased due to lower than anticipated sales, which also has contributed to a decline in deferred revenue for maintenance and training. 3D System's cash balance, while still strong, reflects greater expenditures for operating the business, including trade accounts receivable and inventory." Outlook According to Sims, "We have recently launched a series of programs to stimulate demand for larger machines. These include attractive trade-in options for customers turning in SLA 500s for the flagship SLA 7000, as well as sales incentives on transitions from our entry-level SLA 250 to bigger systems. New sales prospecting programs are also expected to contribute to higher productivity. "The ThermoJet printer business has demonstrated real progress. In the first half of this year alone, 3D Systems shipped more office printers than in all of 1998, "he said. "As well, we have introduced a number of new service options for customers - part of a global customer support initiative - that we expect to gain strength in this year's second half." About
3D Systems The company's systems utilize patented technologies, which fabricate solid objects from digital input. These processes offer significant competitive advantages by substantially reducing the time and cost required to design, develop, and manufacture products. The company also licenses 3D Keltool®, a commercially proven moldmaking solution that produces prototype, bridge, and production tooling inserts. Based in Valencia, Calif., 3D Systems was founded in 1986 and is recognized as the world technology and market leader in solid imaging. For additional information, visit the company's website at www.3dsystems.com or phone (888) 337-9786, ext. 711. For investor information, please call our shareholder communications service at (800) 757-1799.
Download
Financials:
|