VALENCIA, Calif., Apr. 17, 2002 -
3D Systems Corp. (Nasdaq: TDSC) today announced revenues for the first quarter 2002 of $27.2 million and net income of $8.5 million or $0.58 per fully diluted share. This compares with the first quarter 2001 revenue of $27.9 million and EPS of $0.11 per fully diluted share for 3D Systems, prior to the acquisition of DTM Corporation.
As compared with the combined results of 3D Systems and DTM Corporation in the first quarter of 2001 totaling $37.5 million, revenue decreased by 28% in the first quarter of 2002.
Included in the first quarter earnings is a pretax benefit associated with the Vantico arbitration settlement of $18.5 million or $0.82 per share after taxes. Without the benefit associated with the Vantico arbitration, a net loss of $3.5 million or $0.27 per fully diluted share would have been realized. The company continued to strengthen its working capital position and reduced total senior bank debt to $19 million from $21 million at Dec. 31, 2001.
The revenue and earnings shortfall results primarily from lower European revenues and continued slowness in the U.S. manufacturing sector across all product lines.
“We are not pleased with first quarter results,” stated Brian K. Service, president and chief executive officer. “We are in the process of recalibrating our cost structure in line with current market conditions including a reduction of approximately 10% of our work force on a worldwide basis.
“The total number of SLA® 7000 systems shipped in Q1 increased over Q4 2001, although total unit shipments across most other SLA and SLS® systems categories were lower than anticipated,” continued Service. “The reduction in our gross margins to 37.3% overall compared with 46.1% in Q1 2001 (3D Systems and DTM on a combined basis) and 42.9% in Q4 2001 is a result of the lower overall system sales.
“During the first quarter, we made progress on several fronts, especially relating to our Advanced Digital Manufacturing strategic program. And we are very pleased with the Vantico settlement, which resolved one of the major challenges surrounding our business,” Service said.
“We are now refocusing the management resources consumed by the arbitration toward our resin conversion program and our overall materials business. This includes our new Accura™ materials line, which will be announced in the beginning of next week. We also expect to finalize details of the license divestiture, as required under the DOJ Consent Decree, during the second quarter,” Service concluded.
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 3756743.
About 3D Systems
Founded in 1986, 3D Systems provides solid imaging products and solutions that help reduce the time and cost of designing products and facilitate direct and indirect manufacturing. Its systems utilize patented technologies that create physical objects from digital input.
3D Systems currently offers the ThermoJet® solid object printer, SLA® (stereolithography) systems and SLS® (selective laser sintering) systems, as well as related software and materials. Product pricing in the U.S. ranges from $49,995, for the ThermoJet printer, to $799,000 for the high-end SLA 7000 system. The company licenses the complementary 3D Keltool® process, a method for producing steel mold inserts, and currently is developing systems that use composite paste materials for direct manufacturing.
More information on the company is available at www.3dsystems.com, or by phoning 888/337-9786, extension 809, or 661/295-5600 internationally. An investor packet can be obtained by calling 800/757-1799.
Note to editors: Accura 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 which 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: world economic conditions; the ability to timely and cost-effectively identify and obtain or independently develop resins adequate for use with 3D Systems’ products; the funding of amounts of capital adequate to provide for the working capital needs of the company; actions of competitors and customers; reliance on single or limited suppliers; and such other factors as are described in the company’s filings with the Securities and Exchange Commission, including annual reports on Form 10-K for the year ended Dec. 31, 2001, and 3D Systems’ current report on Form 8-K filed on March 21, 2002.
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