ROCK HILL, S.C., Oct. 28, 2010 (GLOBE NEWSWIRE) -- 3D Systems Corporation (Nasdaq:TDSC) announced today that it earned 23 cents per share during the third quarter on a 50% revenue increase and a 90 basis point gross profit margin expansion compared to the third quarter of 2009.
The company generated $18.5 million of cash from operations during the first nine months of 2010. After using $10.3 million to fund strategic investing activities, the company ended with $33.8 million of available cash compared to $24.9 million at December 31, 2009.
"Our improved performance and record third quarter results are closing in on our long term operating model," said Abe Reichental, 3D Systems' President and Chief Executive Officer.
The table below summarizes the company's key financial results.
| ($ in millions) | Third Quarter | First Nine Months | ||||
| % | % | |||||
| Change | Change | |||||
| Favorable | Favorable | |||||
| Operating Highlights | 2010 | 2009 | (Unfavorable) | 2010 | 2009 | (Unfavorable) |
| Revenue | $41.5 | $27.7 | 50% | $108.30 | $76.4 | 42% |
| Gross profit | $18.8 | $12.3 | $49.1 | $33.6 | ||
| % of revenue | 45% | 45% | 53% | 45% | 44% | 46% |
| Operating expenses | $13.7 | $11.2 | $37.9 | $35.0 | ||
| % of revenue | 33% | 41% | (22%) | 35% | 46% | (8%) |
| Operating income (loss) | $5.2 | $1.1 | 373% | $11.2 | ($1.4) | NM |
| Net income (loss) | $5.4 | $0.9 | 495% | $10.1 | ($2.5) | NM |
| Diluted earnings (loss) per share | $0.23 | $0.04 | 475% | $0.43 | ($0.11) | NM |
| Available cash | $33.8 | $24.0 | 41% | $33.8 | $24.0 | 41% |
| Depreciation & amortization | $1.9 | $1.3 | $5.4 | $4.3 | ||
| % of revenue | 5% | 5% | (46%) | 5% | 6% | (23%) |
| **Percents are rounded to nearest whole number | ||||||
| NM: Not meaningful | ||||||
Systems revenue increased by $7.7 million compared to the 2009 quarter and by $16.4 million for the first nine months of 2010 driven by strong demand for the company's production systems. 3D Printers quarterly revenue grew by 74% over the 2009 quarter and 23% sequentially. Materials sales increased $1.1 million and $6.4 million over the third quarter and first nine months of 2009. Healthcare solutions third quarter revenue increased 33% sequentially and sales from service activities including 3Dproparts grew to $12.8 million for the quarter.
"We are very pleased with our results and believe that our focus on delivering value through 3D parts, printers and production systems is providing significant 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 of 2010 on Thursday, October 28, 2010 at 11:30 a.m., Eastern Time.
- To access this Conference Call, dial 1-(888) 626-7452 from in the U.S. or (201) 604-5102 from outside the U.S.
- 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.
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.
About 3D Systems Corporation
3D Systems is a leading provider of 3-D Printing, Rapid Prototyping and Manufacturing systems and parts solutions. Its expertly integrated solutions 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: our customers Create With Confidence.
More information on the company is available at www.3DSystems.com, www.Printin3D.com, www.3Dproparts.com, www.toptobottomdental.com, www.dpt-fast.com, www.bitsfrombytes.com, www.mqast.com, blog.3Dsystems.com, or via email at moreinfo@3Dsystems.com.
The 3D Systems Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4537
| 3D SYSTEMS CORPORATION | ||||
| Condensed Consolidated Statements of Operations | ||||
| Quarters and Nine Months Ended September 30, 2010 and 2009 | ||||
| (Unaudited) | ||||
| Quarters Ended September 30, | Nine Months Ended September 30, | |||
| (in thousands, except per share amounts) | 2010 | 2009 | 2010 | 2009 |
| Revenue: | ||||
| Products | $ 28,742 | $ 19,948 | $ 75,783 | $ 53,021 |
| Services | 12,761 | 7,719 | 32,490 | 23,382 |
| Total revenue | 41,503 | 27,667 | 108,273 | 76,403 |
| Cost of sales: | ||||
| Products | 14,765 | 11,309 | 38,381 | 28,689 |
| Services | 7,910 | 4,039 | 20,787 | 14,086 |
| Total cost of sales | 22,675 | 15,348 | 59,168 | 42,775 |
| Gross profit | 18,828 | 12,319 | 49,105 | 33,628 |
| Operating expenses: | ||||
| Selling, general and administrative | 10,960 | 8,362 | 29,894 | 26,368 |
| Research and development | 2,708 | 2,865 | 7,979 | 8,618 |
| Total operating expenses | 13,668 | 11,227 | 37,873 | 34,986 |
| Operating income (loss) | 5,160 | 1,092 | 11,232 | (1,358) |
| Interest and other income (expense), net | 492 | (59) | (342) | (546) |
| Income (loss) before provision for income taxes | 5,652 | 1,033 | 10,890 | (1,904) |
| Provision for income taxes | 284 | 106 | 767 | 566 |
| Net income (loss) | 5,368 | 927 | 10,123 | (2,470) |
| Net income attributable to noncontrolling interest | -- | 25 | -- | 29 |
| Net income (loss) attributable to 3D Systems | $ 5,368 | $ 902 | $ 10,123 | $ (2,499) |
| Shares used to calculate diluted earnings (loss) per share | 23,441 | 22,694 | 23,302 | 22,504 |
| Diluted earnings (loss) per share (1) | $ 0.23 | $ 0.04 | $ 0.43 | $ (0.11) |
| (1) See Schedule 1 for the calculation of basic and diluted earnings (loss) per share. | ||||
| 3D SYSTEMS CORPORATION | ||
| Condensed Consolidated Balance Sheets | ||
| September 30, 2010 and December 31, 2009 | ||
| (Unaudited) | ||
| September 30, | December 31, | |
| (in thousands) | 2010 | 2009 |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 33,811 | $ 24,913 |
| Accounts receivable, net | 26,620 | 23,759 |
| Inventories, net | 20,750 | 18,378 |
| Prepaid expenses and other current assets | 1,684 | 2,415 |
| Deferred income tax assets | 405 | 634 |
| Restricted cash | 54 | 54 |
| Total current assets | 83,324 | 70,153 |
| Property and equipment, net | 26,796 | 24,789 |
| Other intangible assets, net | 7,852 | 3,634 |
| Goodwill | 49,961 | 48,730 |
| Other assets, net | 2,916 | 3,097 |
| Total assets | $ 170,849 | $ 150,403 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Current portion of capitalized lease obligations | $ 226 | $ 213 |
| Accounts payable | 13,998 | 12,994 |
| Accrued and other liabilities | 12,615 | 11,114 |
| Customer deposits | 2,601 | 627 |
| Deferred revenue | 8,792 | 8,487 |
| Total current liabilities | 38,232 | 33,435 |
| Long-term portion of capitalized lease obligations | 8,084 | 8,254 |
| Other liabilities | 3,928 | 3,944 |
| Total liabilities | 50,244 | 45,633 |
| Commitments and contingencies | -- | -- |
| 3D Systems stockholders' equity: | ||
| Preferred stock, authorized 5,000 shares, none issued | -- | -- |
| Common stock, authorized 60,000 shares, issued and outstanding 23,261 (2010) and 22,774 shares (2009) | 23 | 23 |
| Additional paid-in capital | 182,936 | 177,682 |
| Treasury stock, at cost; 95 shares (2010) and 74 shares (2009) | (154) | (134) |
| Accumulated deficit | (67,368) | (77,491) |
| Accumulated other comprehensive income | 5,168 | 4,617 |
| Total 3D Systems stockholders' equity | 120,605 | 104,697 |
| Noncontrolling interest | -- | 73 |
| Total equity | 120,605 | 104,770 |
| Total liabilities and equity | $ 170,849 | $ 150,403 |
| 3D SYSTEMS CORPORATION | ||
| Condensed Consolidated Statements of Cash Flows | ||
| Nine Months Ended September 30, 2010 and 2009 | ||
| (Unaudited) | ||
| Nine Months Ended September 30, | ||
| (in thousands) | 2010 | 2009 |
| Cash flows from operating activities: | ||
| Net income (loss) | $ 10,123 | $ (2,470) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
| Deferred income taxes | 212 | 153 |
| Depreciation and amortization | 5,355 | 4,341 |
| Provision (benefit) for bad debts | (118) | 941 |
| Stock-based compensation | 1,057 | 936 |
| Loss on the disposition of property and equipment | 49 | 151 |
| Changes in operating accounts: | ||
| Accounts receivable | (155) | 5,316 |
| Inventories | (2,160) | 744 |
| Prepaid expenses and other current assets | 920 | (468) |
| Accounts payable | (1,308) | (4,367) |
| Accrued liabilities | 1,892 | (1,041) |
| Customer deposits | 1,973 | (116) |
| Deferred revenue | 317 | (2,180) |
| Other operating assets and liabilities | 315 | 295 |
| Net cash provided by operating activities | 18,472 | 2,235 |
| Cash flows used in investing activities: | ||
| Purchases of property and equipment | (1,019) | (634) |
| Additions to license and patent costs | (243) | (149) |
| Proceeds from disposition of property and equipment | 6 | 34 |
| Acquisition of businesses, net of cash acquired | (9,086) | -- |
| Net cash used in investing activities | (10,342) | (749) |
| Cash flows provided by financing activities: | ||
| Restricted stock proceeds and stock options | 262 | 242 |
| Repayment of long-term debt | (159) | (145) |
| Repayment of short-term borrowings | -- | (3,085) |
| Restricted cash | -- | 3,216 |
| Net cash provided by financing activities | 103 | 228 |
| Effect of exchange rate changes on cash | 665 | 103 |
| Net increase in cash and cash equivalents | 8,898 | 1,817 |
| Cash and cash equivalents at the beginning of the period | 24,913 | 22,164 |
| Cash and cash equivalents at the end of the period | $ 33,811 | $ 23,981 |
| Supplemental Cash Flow Information: | ||
| Interest payments | $ 442 | $ 474 |
| Income tax payments (receipts) | 274 | (208) |
| Non-cash items: | ||
| Transfer of equipment from inventory to property and equipment, net | 1,419 | 461 |
| Transfer of equipment to inventory from property and equipment, net | 392 | 341 |
| Issuance of stock for acquisition of businesses | 3,915 | -- |
| 3D SYSTEMS CORPORATION | ||||
| Schedule 1 | ||||
| (Unaudited) | ||||
| Following is a reconciliation of the numerator and denominator of the basic and diluted net earnings (loss) per share computations: | ||||
| Quarter Ended September 30, | Nine Months Ended September 30, | |||
| (in thousands, except per share amounts) | 2010 | 2009 | 2010 | 2009 |
| Basic and diluted earnings (loss) per share: | ||||
| Basic earnings (loss) per share: | ||||
| Numerator: | ||||
| Net income (loss) | $ 5,368 | $ 902 | $ 10,123 | $ (2,499) |
| Denominator: | ||||
| Weighted average common shares outstanding | 23,147 | 22,627 | 23,010 | 22,504 |
| Basic earnings (loss) per share | $ 0.23 | $ 0.04 | $ 0.44 | $ (0.11) |
| Diluted earnings (loss) per share: | ||||
| Numerator: | ||||
| Net income (loss) | $ 5,368 | $ 902 | $ 10,123 | $ (2,499) |
| Denominator: | ||||
| Weighted average common shares outstanding | 23,147 | 22,627 | 23,010 | 22,504 |
| Effect of dilutive securities: | ||||
| Stock options and restricted stock awards | 294 | 67 | 292 | -- |
| Diluted weighted average shares outstanding | 23,441 | 22,694 | 23,302 | 22,504 |
| Diluted earnings (loss) per share | $ 0.23 | $ 0.04 | $ 0.43 | $ (0.11) |