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3D Systems Reports Record Revenue and
Improved Operating Results for Third Quarter
and First Nine Months 2007

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ROCK HILL, SC - November 1, 2007- 3D Systems Corporation (NASDAQ: TDSC), a leading provider of 3-D Modeling, Rapid Prototyping and Rapid Manufacturing solutions, announced today its operating results for the third quarter and first nine months of 2007. The company also filed its third-quarter Quarterly Report on Form 10-Q with the SEC today.

The company will hold a conference call and simultaneous webcast to discuss its operating results for the third quarter and first nine months of 2007 tomorrow morning, November 2, 2007, at 9:00 a.m., Eastern Time. Additional information relating to that call and webcast is provided below.

The company reported record third-quarter and nine-month revenue. Revenue for the third quarter increased by 21% to $38.2 million from $31.5 million for the third quarter of 2006. Revenue for the first nine months of 2007 was $111.6 million, a 21% increase over the $92.2 million of revenue reported for the first nine months of 2006.

At September 30, 2007, the company's backlog was approximately $1.5 million, approximately the same amount that the company recorded at the end of each prior 2007 quarter and a significant reduction from the $5.0 million of backlog recorded at December 31, 2006. The company believes that the June 30 and September 30 level of backlog is consistent with the normal operating trends of its business as the company's business is generally not dependent on backlog.

The company reported $0.4 million of operating income for the third quarter, reversing an $8.7 million operating loss for the third quarter of 2006. For the first nine months of 2007, the company's operating loss declined by 68% to $6.6 million from $20.4 million in the 2006 period.

The company's improved operating performance resulted primarily from its higher revenue, higher gross profit and higher gross profit margin in both the third quarter and first nine months of 2007, lower operating expenses in the third quarter of 2007, and a decline in operating expenses as a percentage of revenue in the first nine months of 2007 despite an increase in operating expenses in that period.

"I am pleased with the healthy revenue growth and the improvement in our operating results that we have experienced thus far this year," said Abe Reichental, 3D Systems' president and chief executive officer. "These improved results are consistent with our expected gains from our extensive business transformation efforts.

"I am particularly pleased that, for the third quarter, revenue from systems increased by 56%, reflecting the growth in revenue from our new systems, and that revenue from services resumed an upward growth path. I was a bit disappointed that revenue from our engineered materials and composites revenue grew by only 9% compared to the third quarter of 2006, but believe that this reflected primarily the timing of certain recurring orders and routine third quarter seasonal factors related to summer holidays in various parts of the world. Notwithstanding this third-quarter seasonality, we expect materials revenue growth to resume its double-digit growth rate for the remainder of 2007.




                         Operating Highlights
             Third Quarter and First Nine Months of 2007
             ($ in millions except for per share amounts)
----------------------------------------------------------------------
                           Third Quarter         First Nine Months
                       ---------------------- ------------------------
 Operating Highlights   2007    2006 % Change    2007    2006 % Change
---------------------------- ------- -------- ------- ------- --------
Revenue                $38.2   $31.5      21%    $111.6    $92.2      21%
----------------------------  -------  --------  -------  -------  --------
Gross  profit          $15.9   $10.7              $45.3    $30.2
%  of  Revenue          42%     34%       48%      41%      33%       50%
----------------------------  -------  --------  -------  -------  --------
Operating  expenses    $15.5   $19.4              $51.9    $50.5
%  of  Revenue          41%     62%      (20%)     46%      55%        3%
----------------------------  -------  --------  -------  -------  --------
Oper.  income (loss)    $0.4  ($8.7)     NM       ($6.6)  ($20.4)    (68%)
----------------------------  -------  --------  -------  -------  --------
Net  income  (loss)
  available  to
common  stockholders    $0.3  ($11.3)    NM      ($8.1)   ($24.7)    (67%)
----------------------------  -------  --------  -------  -------  --------
Diluted  income  (loss)
  per  share  available  to
  common  stockholders $0.01  ($0.61)    NM     ($0.40)   ($1.48)    (73%)
----------------------------  -------  --------  -------  -------  --------
Unrestricted  cash     $25.5   $5.3     381%     $25.5      $5.3      381%
----------------------------  -------  --------  -------  -------  --------
Depreciation  and
  amortization          $1.8   $1.0               $5.4      $4.4
%  of  Revenue           5%      3%      80%       5%         5%      23%
----------------------------  -------  --------  -------  -------  --------


Columns may not add due to rounding

NM=not meaningful

"With nine months in, I am gratified that our continued growth from new systems and materials more than offsets the planned decline in revenue from our discontinuation of various legacy products and other less profitable activities," continued Reichental. "With 21% revenue growth and a strong underlying trend of double-digit growth for the first nine months of this year from both systems and materials sales, we believe that our overall improved results demonstrate that the strategic actions that we have taken to reshape our organization, transform our product portfolio and re-engineer our business model are continuing to take effect."

Gross profit for the third quarter of 2007 increased by 48% to $15.9 million from $10.7 million for the third quarter of 2006 and increased by 50% to $45.3 million from $30.2 million in the first nine months of 2006, primarily as a result of the company's higher revenue in each period.

"Our gross profit margin continued to show an improving trend over the third quarter and first nine months of 2006, reflecting our higher revenue, the relatively lower increase in our cost of sales and the absence in the 2007 periods of the business disruptions, challenges and customer accommodations that adversely affected our profitability in the third quarter and first nine months of 2006," continued Reichental. "Our gross profit margin increased to 42% in the third quarter of 2007 from 34% in the 2006 quarter and to 41% for the nine-month period from 33% in the 2006 period."

Operating expenses declined by $3.9 million to 41% of revenue in the third quarter of 2007 from the third quarter of 2006, reflecting lower selling, general and administrative expenses, lower research and development expenses and the absence of the restructuring costs that the company incurred in 2006 for its relocation to Rock Hill.

For the first nine months of this year, operating expenses declined by more than 8 percentage points to 46% of revenue despite increasing by $1.3 million compared to the nine months ended September 30, 2006. This increase arose primarily from $6.9 million of higher selling, general and administrative expenses and $0.2 million of higher research and development costs that were partially offset by the absence in the first nine months of 2007 of the $5.7 million of restructuring costs that the company incurred in the 2006 period related to its relocation to Rock Hill, South Carolina.

This $6.9 million increase in SG&A expenses for the nine months ended September 30, 2007 was due primarily to $8.8 million of higher SG&A costs that the company incurred through June 30, 2007 related primarily to its restatement and other related matters that were only partially offset by their third quarter decline.

"We remain confident in our overall direction and continue to believe that the key initiatives and investments that we undertook last year have provided us with the right platform to achieve our long-term objectives," continued Reichental. "We believe that, apart from the high costs associated with the launch of our V-Flash(TM) Modeler in 2007, our quarterly operating expenses have begun to resume a more normalized run rate, and we expect a further reduction in our operating expenses both on an absolute basis and as a percentage of revenue in the fourth quarter of 2007. In this regard, we expect our SG&A expenses for the fourth quarter of this year to fall into the range of $11 million to $13 million."

The company's continuing high level of work on selected new product developments, including its new V-Flash(TM) Desktop 3-D Modeler, led to the higher research and development expenses in the first nine months of 2007. The company unveiled the V-Flash(TM) Modeler in September at its World Conference, and it expects to ship up to 100 of these Modelers to customers by the end of 2007. As a result of its intensified year-to-date research and development activities in connection with its V-Flash(TM) desktop compact modeler development as well as its accelerated materials development activities, the company is revising its estimated annual research and development expenses for the full year 2007 to the range of $13 million to $14 million from its previous range of $12 million to $13 million.

The company's $0.3 million of net income for the third quarter of 2007 resulted from its $0.4 million of operating income and $0.1 million of interest income in that period, reduced by the $0.2 million income tax provision that it recorded in the third quarter of 2007. This net income amounted to 1 cent per fully diluted share, and reversed an $11.3 million, or a 61 cent loss per fully diluted share, for the 2006 quarter. Net loss available to the common stockholders for the first nine months of 2007 declined by 67% to an $8.1 million, or a 40 cent loss per fully diluted share, from $24.7 million, or a $1.48 loss per fully diluted share, for the first nine months of 2006.

The company ended the third quarter of 2007 with $25.5 million of unrestricted cash compared to $21.0 million on a pro forma basis of unrestricted cash at June 30, 2007 net of its subsequent prepayment in July 2007 of $8.2 million of revolving credit borrowings from Silicon Valley Bank. This $4.5 million increase in unrestricted cash resulted primarily from $6.2 million of cash derived from operating activities in the third quarter of 2007.

During the third quarter of 2007, the company's total indebtedness and capitalized lease obligations declined by $23.2 million to $12.2 million at September 30, 2007, primarily as a result of the conversion in July of all of its 6% convertible subordinated debentures into common stock and the voluntary prepayment of its outstanding revolving credit borrowings mentioned above. With its stronger cash position, the company decided to permit the Silicon Valley Bank revolving credit facility to expire in accordance with its terms on October 1, 2007.

The company also continued to improve its management of inventories and accounts receivable. Inventories, which amounted to $26.1 million at December 31, 2006 and $30.8 million at March 31, 2007, continued to decline and amounted to $22.6 million at September 30, 2007. The company expects to reduce its inventories further during the fourth quarter of 2007.

Accounts receivable, net decreased by $6.4 million to $28.1 million at September 30, 2007 from $34.5 million at December 31, 2006. This decline was primarily attributable to the timing of collections, which resulted in a reduction of days sales outstanding to 68 days at September 30, 2007 from 74 days at December 31, 2006.

"We believe that our stronger financial position resulting from our substantially reduced indebtedness and improved working capital management provides us with the flexibility to pursue our near-term growth opportunities vigorously," concluded Reichental.


Conference Call and Audio Webcast Details
3D Systems will hold a conference call and audio Webcast to discuss its financial results for the third quarter and first nine months of 2007 tomorrow morning, November 2, 2007, at 9:00 a.m., Eastern Time.

To access the Conference call, dial 1-888-336-3485 (or 706-634-0653 from outside the United States). A recording will be available two hours after completion of the call for seven days. To access the recording, dial 1-800-642-1687 (or 706-645-9291 from outside the United States) and enter 21380098, the conference call ID number.

To access the audio Webcast, log onto 3D Systems' website at www.3dsystems.com. The link to the Webcast is provided on the homepage of the website. 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 48 hours after completion of the call at: www.3dsystems.com under the Investor Relations' section.

Forward-Looking Statements
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, you are urged to consider statements in the conditional or future tense or that include terms 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 the future events and trends affecting its business and expectations 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 filing 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 3-D Modeling, Rapid Prototyping and Rapid Manufacturing solutions. Its systems and materials reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input These solutions are used for design communication and prototyping well as for production of functional end-use parts: Transform your products.

More information on the company is available at www.3dsystems.com, or via email at moreinfo@3dsystems.com.


[Additional financial tabular data omitted.]


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