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3D Systems Reports Operating Results
for the Third Quarter 2009

news!


Improved Net Income and Gross Profit Margin on Sequentially
Higher Revenue and Reduced Operating Expenses

Rock Hill, SC - November 3, 2009 - 3D Systems Corporation (NASDAQ: TDSC), a leading provider of 3-D Printing, Rapid Prototyping and Manufacturing parts and systems solutions, announced its operating results for the third quarter and first nine months of 2009 today.

  • The company reported diluted earnings per share of 4 cents for the third quarter of 2009 on lower revenue. Gross profit margin and operating expenses both improved compared to the third quarter of 2008.

  • The company reported $0.9 million of third quarter net income, including $1.8 million of non-cash expenses primarily related to depreciation and amortization expense.

  • The company's cash position remained unchanged from the previous quarter. For the first nine months of 2009, the company generated $1.8 million of net cash to end the period with $24.0 million of available cash compared to $22.2 million at December 31, 2008.

The table below summarizes the company's key financial results for the third quarters and first nine months of 2009 and 2008.


Operating Highlights
Third Quarters and First Nine Months
($ in millions except for per share amounts)

NR Photo


"We are pleased that sales of systems and materials rebounded somewhat during the quarter amidst a continued challenging operating environment world-wide," said Abe Reichental, 3D Systems' President and Chief Executive Officer.

"We believe that our ability to deliver improved net income on lower revenue that was derived from a higher portion of 3-D printers, demonstrates the leverage we achieved from the cost reductions and productivity improvements we implemented over the past 24 months," continued Reichental.

Systems revenue increased sequentially by $0.9 million but declined by $6.8 million compared to the third quarter of 2008. 3-D Printer sales accounted for nearly half of all systems revenue, reflecting the first full-quarter revenue contribution of V-Flash® Desktop Printers and sustained demand for our expanded family of ProJet™ Professional Printers.

Materials sales grew by $1.4 million sequentially, indicating a modest recovery across the installed base, but were 20% below the third quarter of 2008. Integrated materials contributed $0.5 million to the sequential quarterly growth.

Service revenue rose sequentially by 8% but at $7.7 million for the quarter was lower than comparable 2008 quarterly revenue reflecting the cumulative impact of the trailing 12 month decline in large-frame systems revenue on recurring maintenance and warranty revenue. These declines began during the first quarter of 2008.

Notwithstanding its 14% lower service revenue, the company reported that service gross profit margin rose 21 percentage points to 48% over the comparable 2008 period, reflecting the results of continued quality improvements. Gross profit for services was $3.7 million, an increase of $1.3 million over the third quarter of 2008.

"We are pleased that during a most challenging operating period, we were able to continue to strengthen our balance sheet and get our house in order operationally and financially," added Reichental. "Our current financial strength and flexibility, as reflected by our debt-free balance sheet and sustained cash position, enabled us to begin to pursue new organic and acquisition-related growth initiatives.

"We expect to benefit competitively from our expanding products and services portfolio that now includes 3Dproparts™, the world's largest Rapid Prototyping and Manufacturing parts service. We remain confident in our ability to execute on our strategic plans and provide value to our customers and stockholders," concluded Reichental.

Conference Call and Audio Webcast Details
3D Systems will hold a conference call and audio webcast to discuss its operating results for the third quarter and first nine months of 2009 on Wednesday, November 4, 2009 at 9:00 a.m., Eastern Time. To access this Conference Call, dial 1-888-336-3485 (or 706-634-0653 from outside the United States). The confirmation code is 360-281-48.

To access the audio webcast, log onto 3D Systems' Web site at www.3dsystems.com/ir. 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 three hours after completion of the call at: www.3dsystems.com/ir.


About 3D Systems Corporation
3D Systems is a leading provider of 3-D Printing, Rapid Prototyping and 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 as well as for production of functional end-use parts: Transform your products.

More information on the company is available at
www.3DSystems.com,
www.modelin3D.com,
www.toptobottomdental.com,
www.3Dproparts.com,
www.mqast.com,
http://blog.3Dsystems.com,
or via email at moreinfo@3Dsystems.com.


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, 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.


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