VALENCIA, Calif., Aug. 12, 2003 -
3D Systems Corp. (NASDAQ: TDSC). 3D Systems Corp. announced today revenues for the quarter ended June 27, 2003 were $26.9 million compared with revenues of $28.5 in the second quarter a year ago a decrease of 5.9%. Net loss available to common shareholders for Q2 2003 was $3.8 million or $.30 per fully diluted share compared with a net loss available to common shareholders of $5.6 million or $.44 per fully diluted share in the prior year period.
Gross profit margins rose to 40% in Q2 2003 compared with gross margins of 38% for the same period a year ago, reflecting improved materials margins resulting from the shift from distribution of Vantico materials to the production and distribution of the Company’s Accura® materials. Total operating expenses decreased 36% to $12.5 million in Q2 2003 from $19.3 million in the second quarter 2002, reflecting a concerted effort to reduce costs and expenses which began in the third quarter of 2002.
During the quarter we had one time unusual expenses of approximately $1.4 million related to the now completed investigation of the Audit Committee of the Board of Directors into revenue recognition issues, increased professional fees associated with the investigation, the write-off of deferred financing costs associated with the repayment of the term loan and other one time costs relating to severance.
Revenues for the first six months of 2003 were $49.9 million compared with revenues of $56.1 million in the first half of 2002. Net loss available to common shareholders for the first six months was $10.6 million or $.84 per fully diluted share compared with net income available to common shareholders of $3.1 million or $.21 per fully diluted share in the first six months a year ago. Results for the first half 2002 include an $ 18.5 million pretax benefit associated with the Vantico arbitration settlement and also include approximately $2.8 million in costs associated with the investigation of the Audit Committee, increased professional fees associated with the investigation, the write-off of deferred financing costs associated with the repayment of the term loan, and other one time costs relating to severance.
On May 5, 2003, the Company completed a private placement resulting in net proceeds to the Company of $15.2 million. Of these proceeds, $9.6 million was used to pay down bank debt incurred in conjunction with the acquisition of DTM Corp. in 2001. At June 27, 2003, the Company had cash balances of $9 million.
“The past six months have been a very difficult period for our Company,” said G. Walter Loewenbaum II, chairman of the Board of Directors. “A decrease in revenues principally resulting from the continuing downturn in capital expense purchasing, combined with the time, attention and costs required by the Audit Committee’s investigation and the need to obtain additional finances severely strained our resources. I am pleased to report that by the end of the second quarter, the Audit Committee had completed its investigation, we paid down bank debt, reduced costs, developed and begun implementing new systems of internal controls and we are fully compliant with SEC and Nasdaq regulations relating to the timely filing of our reports.
There is sustained interest in our ADM applications. In the second quarter 2003, ADM revenues were $9.1 million,” Mr. Loewenbaum continued. “We begin the second half of the year with the decks cleared, ready to move forward throughout the remainder of 2003 and into 2004.”
3D Systems will hold a conference call to discuss Q2 2003 results on August 12, 2003 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 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 2121776, the conference call ID number.
About 3D Systems
Founded in 1986, 3D Systems®, the solid imaging companySM, provides solid imaging products and solutions that reduce the time and cost of designing products and facilitate direct and indirect manufacturing. Its systems utilize patented technologies to create physical objects from digital input that can be used in design communication, prototyping, and as functional end-use parts.
3D Systems currently offers the ThermoJet® solid object printer, SLA® (stereolithography) systems, SLS® (selective laser sintering) systems, and Accura® materials (including photopolymers, metals, nylons, engineering plastics, and thermoplastics).
3D Systems is the originator of the advanced digital manufacturing (ADMSM) solution for manufacturing applications. ADM is the utilization of 3D Systems solid imaging technologies to accelerate production of smaller volumes of customized/ specialized parts. A typical ADM center is expected to contain multiple 3D Systems’ SLA, MJM and/or SLS systems dedicated to full-time manufacturing applications.
Product pricing in the U.S. ranges from $49,995, for the ThermoJet printer, to $799,000 for the high-end SLA 7000 system. 3D Systems’ multiple platform product line enables companies to choose the most appropriate systems for applications ranging from the creation of design communication models to prototypes to production parts
More information on the company is available at www.3dsystems.com, or by email at , or by phoning 888/337-9786, or 661/295-5600 ext. 2882 internationally. An investor packet can be obtained by calling 800/757-1799.
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