Thursday, Oct 27, 2011 5:00 AM
ROCK HILL, South Carolina – October 27, 2011 - 3D Systems Corporation (NYSE: DDD) announced today that it earned 14 cents per share for the third quarter of 2011. Gross profit rose by 48% on a 39% revenue increase compared to the third quarter of 2010.
The company generated $12.6 million cash from operations during the third quarter despite a $5.3 million increase in its operating expenses. The increase included $1.2 million of higher R&D expenditures compared to the 2010 period in support of a number of significant new product launches that occurred during the quarter and its consumer and design productivity growth initiatives.
“We are very pleased with our sustained growth and improved gross profit,” said Abe Reichental, 3D Systems’ President, and Chief Executive Officer. “Importantly, we delivered record materials and services revenue, together with another record printer unit sales quarter.”
The company entered the fourth quarter with positive sales momentum that is reflected in part by its September-end $11.3 million backlog including $6.3 million from its on-demand parts and the remainder from its printers and other products.
(See the attached PDF for a table that summarizes the company’s key 2011 financial results for the third quarter and nine months )
Gross profit margin for the quarter rose by 290 basis points over the 2010 period on higher revenue and favorable contributions from effective acquisitions’ integration over time, together with other ongoing operational improvements, resulting in sequential rebounding to 48.3%.
Net income for the quarter included $2.0 million of litigation and acquisition-related expenses, $0.6 million currency revaluation expense and $3.0 million of non-cash expenses related to depreciation, amortization and share-based compensation expense.
The company ended the third quarter with $72.6 million of available cash and cash equivalents. During the first nine months of 2011, the company generated $18.8 million of cash from operations, raised $62.1 million in a common stock offering and used $47.4 million to fund it's strategic investing activities.
“We are pleased with the continued record printer unit sales and strong recurring revenue growth was driven by our increasing user base. We believe that the marketplace for our expanded 3D content-to-print products and services is underpenetrated and that together with our diversified portfolio and growing geographic presence, positions us well for continued success. While we are concerned about the macroeconomic uncertainty worldwide, we remain optimistic about our future and believe that we are on track to achieve our long-term objectives,” concluded Reichental.
Conference Call and Webcast Details
3D Systems will hold a conference call and webcast to discuss its operating results for the third quarter and nine months 2011 on Thursday, October 27, 2011, at 11:30 a.m., Eastern Time.
- To access this conference call, dial 1-866-783-2140 from in the U.S. or 1-857-350-1599 from outside the U.S. and enter participant code 69090514.
- To access the webcast, log onto 3D Systems’ web site at investor.3dsystems.com. To ensure timely participation and technical capability, we recommend logging on a few minutes prior to the conference call to activate your participation. The webcast will be available for replay beginning approximately two hours after completion of the call at investor.3dsystems.com.
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements,” “Cautionary Statements and Risk Factors,” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.
About 3D Systems Corporation
3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials, and on-demand custom parts services for professionals and consumers alike. The company also provides creative content development, design productivity tools and curation services and downloads. Its expertly integrated solutions replace displace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. These solutions are used to rapidly design, communicate, prototype and produce functional end-use parts empowering our customers to create with confidence.
More information on the company is available at www.3DSystems.com.
To experience 3D Systems’ entire range of 3D content-to-print products and services please visit www.printin3D.com, www.production3dprinters.com, www.toptobottomdental.com, www.3Dproparts.com, www.quickparts.com, www.alibre.com, www.bitsfrombytes.com, www.The3dStudio.com, www.freedomofcreation.com, www.sycode.com, www.botmill.com, blog.3dsystems.com, or via email at moreinfo@3Dsystems.com.