3D Systems Earns 40 Cents Per Share on Record Fourth Quarter Revenue

ROCK HILL, S.C., Feb. 17, 2011 (GLOBE NEWSWIRE) -- 3D Systems Corporation (Nasdaq:TDSC) announced today that it earned 40 cents per share, fully diluted, for the fourth quarter of 2010 on a 42% revenue increase and a 400 basis point gross profit margin expansion compared to the fourth quarter of 2009. The company's quarterly and annual earnings per share benefitted by 5 cents per share from releasing a portion of its valuation allowance on deferred tax assets.

The company earned 83 cents per share, fully diluted, for the full year 2010 and generated $31.8 million of cash from operations. After using $20.8 million to fund strategic investing activities, the company ended 2010 with $37.3 million of available cash compared to $24.9 million at December 31, 2009.

"Our record fourth quarter and full year results validate 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, except per share amounts)
Fourth Quarter Full Year
Operating Highlights 2010 2009 %
2010 2009 %
Revenue $51.6 $36.4 42% $159.9 $112.8 42%
Gross profit $24.9 $16.1 54% $74.0 $49.7 49%
 % of revenue 48% 44%   46% 44%  
Operating expenses $15.2 $11.7 (30%) $53.1 $46.7 (14%)
 % of revenue 29% 32%   33% 41%  
Operating income $9.7 $4.4 119% $20.9 $3.1 581%
Net income $9.4 $3.6 165% $19.6 $1.1 1,618%
Diluted earnings per share  $0.40 $0.16 150% $0.83 $0.05 1,560%
Available cash $37.3 $24.9 50% $37.3 $24.9 50%
Depreciation & amortization  $2.2 $1.5 (40%) $7.5 $5.9 (28%)
 % of revenue 4% 4%   5% 5%  
- Percents are rounded to nearest whole number            
- For more detail on the company's performance, download the annual report on Form 10-K that was filed today with the Securities and Exchange Commission.            

The company delivered revenue growth from all its revenue categories for the fourth quarter and full year 2010. Strong demand for its personal, professional and production 3D printers led revenue growth and accounted for a $7.8 million increase compared to the 2009 period and $6.2 million sequentially. Production printers' revenue grew 43% compared to the 2009 quarter and 46% sequentially and personal and professional printers' revenue grew 103% over the 2009 quarter and 37% sequentially. 

Print materials' revenue increased $1.8 million and $8.1 million over the fourth quarter and full year of 2009.  Revenue from service activities, including 3Dproparts™, grew to $14.3 million for the quarter. 3Dproparts™ services accounted for $6.8 million of service revenue for the fourth quarter and $18.3 million for the full year, of which $10.3 million was from businesses acquired in 2010.

Gross profit margin for the quarter and year expanded to 48% and 46% compared to 44% for each of the 2009 periods, reflecting improved overhead absorption and higher production and professional printers' margin contribution. 

"We are very pleased with our record results and believe that our focus on democratizing access and accelerating adoption of affordable 3D content-to-print solutions 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 fourth quarter and full year 2010 on Thursday, February 17, 2011 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 two 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 3D content-to-print solutions including 3D printers, parts and print materials. Its expertly integrated rapid prototyping and manufacturing solutions reduce the time and cost of designing new products and printing real parts directly from digital input. These solutions are used to design, communicate, prototype and produce functional end-use parts and 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.

Consolidated Statements of Operations
Quarter and Full Year Ended December 31, 2010 and 2009
  Quarter Ended December 31, Full Year Ended December 31,
(in thousands, except per share amounts) 2010 2009 2010 2009
Products  $ 37,333  $ 27,777  $ 113,117  $ 80,798
Services 14,262 8,655 46,751 32,037
Total revenue  51,595  36,432  159,868  112,835
Cost of sales:        
Products  17,659  14,612  56,041  43,301
Services  9,065  5,718  29,851  19,804
Total cost of sales  26,724  20,330  85,892  63,105
Gross profit  24,871  16,102  73,976  49,730
Operating expenses:        
Selling, general and administrative  12,436  9,160  42,331  35,528
Research and development  2,746  2,511  10,725  11,129
Total operating expenses  15,182  11,671  53,056  46,657
Income from operations  9,689  4,431  20,920  3,073
Interest and other expense, net  840  614  1,181  1,160
Income before provision for income taxes  8,849  3,817  19,739  1,913
Provision (benefit) for income taxes  (594)  208  173  774
Net income  9,443  3,609  19,566  1,139
Net income attributable to noncontrolling interest  --   44  --   73
Net income attributable to 3D Systems  $ 9,443  $ 3,565  $ 19,566  $ 1,066
Shares used to calculate diluted earnings per share 23,829 22,834 23,464 22,605
Diluted earnings per share (1)  $ 0.40  $ 0.16  $ 0.83  $ 0.05
 (1) See Schedule 1 for the calculation of basic and diluted earnings per share.        
Consolidated Balance Sheets
December 31, 2010 and 2009
      December 31,   December 31,  
(in thousands) 2010   2009  
Current assets:        
Cash and cash equivalents  $ 37,349    $ 24,913  
Accounts receivable, net  35,800    23,759  
Inventories, net  23,811    18,378  
Prepaid expenses and other current assets  1,295    2,415  
Deferred income tax assets  1,874    634  
Restricted cash  11    54  
Total current assets  100,140    70,153  
Property and equipment, net  27,669    24,789  
Other intangible assets, net  18,275    3,634  
Goodwill  58,978    48,730  
Other assets, net  3,738    3,097  
Total assets  $ 208,800    $ 150,403  
Current liabilities:        
Current portion of capitalized lease obligations   $ 224    $ 213  
Accounts payable  26,556    12,994  
Accrued and other liabilities  17,969    11,114  
Customer deposits  2,298    627  
Deferred revenue  10,618    8,487  
Total current liabilities  57,665    33,435  
Long-term portion of capitalized lease obligations   8,055    8,254  
Other liabilities  9,961    3,944  
Total liabilities  75,681    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 23,474 (2010) and 22,774 shares (2009)  23    23  
Additional paid-in capital  186,252    177,682  
Treasury stock, at cost; 134 shares (2010) and 74 shares (2009)  (189)    (134)  
Accumulated deficit  (57,925)    (77,491)  
Accumulated other comprehensive income  4,958    4,617  
Total 3D Systems stockholders' equity  133,119    104,697  
Noncontrolling interest  --     73  
Total equity  133,119    104,770  
Total liabilities and equity  $ 208,800    $ 150,403  
Consolidated Statements of Cash Flows  
Years Ended December 31, 2010 and 2009  
  Year Ended December 31,  
(in thousands) 2010 2009  
Cash flows from operating activities:      
Net income  $ 19,566  $ 1,139  
Adjustments to reconcile net income to net cash provided by operating activities:      
Deferred income taxes  (1,235)  309  
Depreciation and amortization  7,520  5,886  
Provision for bad debts, net  102  909  
Stock-based compensation  1,406  1,190  
Loss on the disposition of property and equipment  91  194  
Changes in operating accounts:      
Accounts receivable  (7,456)  1,430  
Inventories  (5,693)  2,436  
Prepaid expenses and other current assets  1,366  (371)  
Accounts payable  10,433  (4,395)  
Accrued liabilities  2,505  617  
Customer deposits  1,677  (529)  
Deferred revenue  2,188  (1,106)  
Other operating assets and liabilities  (626)  25  
Net cash provided by operating activities  31,844  7,734  
Cash flows used in investing activities:      
Purchases of property and equipment  (1,283)  (974)  
Proceeds from disposition of property and equipment  6  52  
Acquisition of businesses, net of cash acquired  (19,195)  (4,098)  
Additions to license and patent costs  (302)  (223)  
Net cash used in investing activities  (20,774)  (5,243)  
Cash flows provided by financing activities:      
Restricted stock proceeds and stock options  1,214  298  
Repayment of long-term debt  (216)  (195)  
Repayment of short-term borrowings  --   (3,085)  
Restricted cash  43  3,255  
Net cash provided by financing activities  1,041  273  
Effect of exchange rate changes on cash  325  (15)  
Net increase in cash and cash equivalents  12,436  2,749  
Cash and cash equivalents at the beginning of the period  24,913  22,164  
Cash and cash equivalents at the end of the period  $ 37,349  $ 24,913  
Supplemental Cash Flow Information:      
Interest payments  $ 589  $ 622  
Income tax payments (receipts)  711  (541)  
Non-cash items:      
Transfer of equipment from inventory to property and equipment, net  2,484  1,323  
Transfer of equipment to inventory from property and equipment, net  265  915  
Issuance of stock for acquisition of businesses  5,895  --   
Schedule 1
Following is a reconciliation of the numerator and denominator of the basic and diluted net earnings (loss) per share computations:    
  Quarter Ended December 31, Year Ended December 31,
(in thousands, except per share amounts) 2010 2009 2010 2009
Basic and diluted earnings (loss) per share:        
Basic earnings (loss) per share:        
Net income (loss)  $ 9,443  $ 3,565  $ 19,566  $ 1,066
Weighted average common shares outstanding  23,304  22,660  23,084  22,544
Basic earnings (loss) per share  $ 0.41  $ 0.16  $ 0.85  $ 0.05
Diluted earnings (loss) per share:        
Net income (loss)  $ 9,443  $ 3,565  $ 19,566  $ 1,066
Weighted average common shares outstanding  23,304  22,660  23,084  22,544
Effect of dilutive securities:        
Stock options and restricted stock awards  525  174  380  61
Diluted weighted average shares outstanding  23,829  22,834  23,464  22,605
Diluted earnings (loss) per share  $ 0.40  $ 0.16  $ 0.83  $ 0.05
CONTACT: Investor Contact: Stacey Witten

         Media Contact: Katharina Hayes

The following information was filed by 3D Systems Corp (DDD) on Thursday, February 17, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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