Conference Call and Audio Webcast Details
3D Systems will hold a conference call and audio webcast to discuss its second-quarter and first-half 2008 financial results tomorrow morning, August 6, 2008, 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 three days. To access the recording, dial 1-800-642-1687 (or 706-645-9291 from outside the United States) and enter 55872360, the confirmation code.
- 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 Modeling, 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, or via email at Email Contact.
| 3D SYSTEMS CORPORATION | |||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||
| Quarter and Six Months Ended June 30, 2008 and 2007 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| (in thousands, except per share amounts) | 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Revenue: | |||||||||||||||||
| Products | $ | 27,713 | $ | 27,591 | $ | 50,478 | $ | 56,150 | |||||||||
| Services | 8,943 | 8,835 | 17,965 | 17,208 | |||||||||||||
| Total revenue | 36,656 | 36,426 | 68,443 | 73,358 | |||||||||||||
| Cost of sales: | |||||||||||||||||
| Products | 15,795 | 15,864 | 27,522 | 29,928 | |||||||||||||
| Services | 7,541 | 7,083 | 14,175 | 14,048 | |||||||||||||
| Total cost of sales | 23,336 | 22,947 | 41,697 | 43,976 | |||||||||||||
| Gross profit | 13,320 | 13,479 | 26,746 | 29,382 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Selling, general and administrative | 12,555 | 14,872 | 25,619 | 29,764 | |||||||||||||
| Research and development | 3,578 | 3,528 | 7,175 | 6,615 | |||||||||||||
| Total operating expenses | 16,133 | 18,400 | 32,794 | 36,379 | |||||||||||||
| Operating loss | (2,813 | ) | (4,921 | ) | (6,048 | ) | (6,997 | ) | |||||||||
| Interest expense and other, net | 200 | 559 | 270 | 1,245 | |||||||||||||
| Loss before provision for income taxes | (3,013 | ) | (5,480 | ) | (6,318 | ) | (8,242 | ) | |||||||||
| Provision for (benefit of) income taxes | 310 | (177 | ) | 696 | 181 | ||||||||||||
| Net loss | $ | (3,323 | ) | $ | (5,303 | ) | $ | (7,014 | ) | $ | (8,423 | ) | |||||
| Shares used to calculate basic and diluted net loss | 22,351 | 19,361 | 22,339 | 19,240 | |||||||||||||
| Basic and diluted net loss per share (1) | $ | (0.15 | ) | $ | (0.27 | ) | $ | (0.31 | ) | $ | (0.44 | ) | |||||
|
(1) See Schedule 1 for the calculation of basic and diluted net loss per share. |
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| 3D SYSTEMS CORPORATION | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| June 30, 2008 and December 31, 2007 | |||||||||
| (Unaudited) | |||||||||
| (in thousands) | 2008 | 2007 | |||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 19,109 | $ | 29,689 | |||||
| Accounts receivable, net | 28,503 | 31,115 | |||||||
| Inventories, net | 26,085 | 20,041 | |||||||
| Prepaid expenses and other current assets | 3,648 | 4,429 | |||||||
| Deferred income tax assets | 586 | 693 | |||||||
| Restricted cash | 1,200 | 1,200 | |||||||
| Assets held for sale, net | 3,454 | 3,454 | |||||||
| Total current assets | 82,585 | 90,621 | |||||||
| Property and equipment, net | 24,820 | 21,331 | |||||||
| Goodwill | 48,742 | 47,682 | |||||||
| Other intangible assets, net | 4,460 | 5,170 | |||||||
| Other assets, net | 2,755 | 2,581 | |||||||
| $ | 163,362 | $ | 167,385 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Industrial development bonds related to assets held for sale | $ | 3,205 | $ | 3,325 | |||||
| Current portion of capitalized lease obligations | 188 | 181 | |||||||
| Accounts payable | 20,501 | 20,712 | |||||||
| Accrued liabilities | 10,178 | 12,248 | |||||||
| Customer deposits | 3,626 | 1,537 | |||||||
| Deferred revenue | 11,299 | 11,712 | |||||||
| Total current liabilities | 48,997 | 49,715 | |||||||
| Long-term portion of capitalized lease obligations | 8,567 | 8,663 | |||||||
| Other liabilities | 4,524 | 4,238 | |||||||
| Total liabilities | 62,088 | 62,616 | |||||||
| Stockholders' equity: | |||||||||
| Common stock, authorized 60,000 shares, issued and outstanding 22,417 shares (2008) and 22,224 shares (2007) | |||||||||
| 22 | 22 | ||||||||
| Additional paid-in capital | 175,592 | 173,645 | |||||||
| Treasury stock, at cost; 52 shares (2008) and 50 shares (2007) | (113 | ) | (111 | ) | |||||
| Accumulated deficit in earnings | (79,417 | ) | (72,403 | ) | |||||
| Accumulated other comprehensive income | 5,190 | 3,616 | |||||||
| Total stockholders' equity | 101,274 | 104,769 | |||||||
| $ | 163,362 | $ | 167,385 | ||||||
| 3D SYSTEMS CORPORATION | |||||||||
| Condensed Consolidated Statements of Cash Flow | |||||||||
| Six Months Ended June 30, 2008 and 2007 | |||||||||
| (Unaudited) | |||||||||
| Six Months Ended June 30, | |||||||||
| (in thousands) | 2008 | 2007 | |||||||
| Cash flow from operating activities: | |||||||||
| Net loss | $ | (7,014 | ) | $ | (8,423 | ) | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities : | |||||||||
| Provision for (benefit of) deferred income taxes | 110 | (149 | ) | ||||||
| Depreciation and amortization | 3,123 | 3,647 | |||||||
| Provision for (benefit of) bad debts | 287 | (28 | ) | ||||||
| Stock-based compensation | 856 | 1,660 | |||||||
| Changes in operating accounts: | |||||||||
| Accounts receivable | 4,353 | 8,591 | |||||||
| Inventories | (7,589 | ) | 181 | ||||||
| Prepaid expenses and other current assets | 899 | 1,587 | |||||||
| Accounts payable | (1,616 | ) | (9,571 | ) | |||||
| Accrued liabilities | (2,749 | ) | (1,384 | ) | |||||
| Customer deposits | 1,961 | (4,993 | ) | ||||||
| Deferred revenue | (783 | ) | 965 | ||||||
|
Other operating assets and liabilities |
(219 | ) | 325 | ||||||
| Net cash used in operating activities | (8,381 | ) | (7,592 | ) | |||||
| Cash flow used in investing activities: | |||||||||
| Purchases of property and equipment | (3,244 | ) | (417 | ) | |||||
| Additions to license and patent costs | (230 | ) | (262 | ) | |||||
| Software development costs | - | (300 | ) | ||||||
| Net cash used in investing activities | (3,474 | ) | (979 | ) | |||||
| Cash flow provided by financing activities: | |||||||||
| Net proceeds from issuance of common stock | - | 20,562 | |||||||
| Stock options and restricted stock proceeds | 1,091 | 2,621 | |||||||
| Repayment of long-term debt | (210 | ) | (176 | ) | |||||
| Net cash provided by financing activities | 881 | 23,007 | |||||||
| Effect of exchange rate changes on cash | 394 | 406 | |||||||
| Net increase (decrease) in cash and cash equivalents | (10,580 | ) | 14,842 | ||||||
| Cash and cash equivalents at the beginning of the period | 29,689 | 14,331 | |||||||
| Cash and cash equivalents at the end of the period | $ | 19,109 | $ | 29,173 | |||||
| Supplemental Cash Flow Information: | |||||||||
| Interest payments | $ | 483 | $ | 786 | |||||
| Income tax payments | 408 | 791 | |||||||
| Non-cash items: | |||||||||
| Cumulative effect of adopting FIN 48 | - | 1,208 | |||||||
| Conversion of 6% convertible subordinated debentures | - | 509 | |||||||
| Transfer of equipment from inventory to property and equipment | 3,944 | 945 | |||||||
| Transfer of equipment to inventory from property and equipment | 1,518 | 322 | |||||||
| 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 June 30, | Six Months Ended June 30, | ||||||||||||||||
| (in thousands, except per share amounts) | 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Basic and diluted earnings (loss) per share: | |||||||||||||||||
| Basic earnings (loss) per share: | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net loss | $ | (3,323 | ) | $ | (5,303 | ) | $ | (7,014 | ) | $ | (8,423 | ) | |||||
| Denominator: | |||||||||||||||||
| Weighted average common shares outstanding | 22,351 | 19,361 | 22,339 | 19,240 | |||||||||||||
| Basic net loss per share | $ | (0.15 | ) | $ | (0.27 | ) | $ | (0.31 | ) | $ | (0.44 | ) | |||||
| Diluted earnings (loss) per share: | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net loss | $ | (3,323 | ) | $ | (5,303 | ) | $ | (7,014 | ) | $ | (8,423 | ) | |||||
| Denominator: | |||||||||||||||||
| Weighted average common shares outstanding | 22,351 | 19,361 | 22,339 | 19,240 | |||||||||||||
| Effect of dilutive securities: | |||||||||||||||||
| Stock options and restricted stock awards | - | - | - | - | |||||||||||||
| Diluted weighted average shares outstanding | 22,351 | 19,361 | 22,339 | 19,240 | |||||||||||||
| Diluted net loss per share | $ | (0.15 | ) | $ | (0.27 | ) | $ | (0.31 | ) | $ | (0.44 | ) | |||||
