ROCK HILL, South Carolina – February 24, 2010 - 3D Systems Corporation (NASDAQ: TDSC), a leading provider of 3-D Printing, Rapid Prototyping and Manufacturing Systems and Parts Solutions, announced its operating results for the fourth quarter and full year of 2009 today.
The company reported diluted earnings per share of 16 cents for the fourth quarter of 2009 and 5 cents for the year, an earnings improvement on lower revenue. Gross margin for the fourth quarter remained consistent relative to the third quarter of 2009 at 44% for both periods.Gross margin for 2009 improved to 44% compared to 40% in 2008.
The company reported $3.6 million of fourth quarter net income, a $2.7 million increase from the third quarter of 2009. Net income for the full year totaled $1.1 million, compared to a net loss of $6.1 million in 2008.
During 2009, the company generated $7.7 million of net cash from operations, of which $5.2 million was used to fund our strategic investing activities. The company remained debt free and ended 2009 with $24.9 million of available cash compared to $22.2 million at December 31, 2008.
“We are pleased that sales of systems and materials continued to improve sequentially in the midst of the continued challenging worldwide operating environment,” said Abe Reichental, 3D Systems’ President and Chief Executive Officer.
“We believe that our ability to improve our bottom line on lower revenue for the third quarter in a row demonstrates the leverage we achieved from the cost reductions and productivity improvements we implemented over the past two years, which has enabled us to be profitable for the year in total,” continued Reichental.
Systems revenue for the fourth quarter increased sequentially by $6.1 and by $1.2 million compared to the fourth quarter of 2008. Systems revenue for the year declined to $30.5 million from $41.3 million in 2008. 3-D Printer sales increased relative to the third quarter but decreased as a percentage of total systems revenue due to increased sales of largeand mid-frame systems.
Materials sales continued to improve sequentially, a trend that resumed in the second quarter of 2009. Materials revenue grew by $1.7 million over the third quarter of 2009, indicating a continued recovery across the installed base. Integrated materials for the quarter increased by $0.5 million to $4.4 million, which contributed to the sequential quarterly growth.
Service revenue, including revenue from businesses that we acquired in the fourth quarter, rose by 12% sequentially and by 4% year-over-year as a result of sales from our new 3Dproparts™ service. This increase was partially offset by a decrease in system upgrade sales.
The company reported 44% gross margin for the fourth quarter and full year. Systems gross margin improved from 16% in the third quarter to 36% in the fourth quarter, primarily due to volume increases.
“We are pleased that while beginning to execute on our new growth strategy, we were able to continue to strengthen our balance sheet, improving our cash position and maintaining a debt-free balance sheet. We remain confident in our ability to execute on our strategic plans and provide value to our customers and stockholders,” added 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 of 2009 on Thursday, February 25, 2010 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 52985568.
- 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. Forwardlooking 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 forwardlooking 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.modelin3d.com, www.3Dproparts.com, www.3Dsystems.com/ir, www.toptobottomdental.com, www.mqast.com, or via email at [email protected].
(See the attached PDF for summary tables.)