3D Systems Posts Record Fourth Quarter/Full Year Sales
Actua 2100 Shipments Commence in Fourth Quarter
VALENCIA, Calif., Feb. 20 /PRNewswire/ -- 3D Systems Corporation (Nasdaq-NNM: TDSC) today announced that
sales for the fourth quarter ended December 31, 1996 rose 18 percent to $22.1 million from $18.7 million one year ago.
Net income for the quarter totaled $1.7 million, equal to 14 cents per share, compared with $1.3 million, or 11 cents per
share, in the corresponding quarter of 1995. In the fourth quarter of 1995, the company took a charge to operating expenses
of $850,000 related to the relocation of its manufacturing operations to Grand Junction, Colorado.
For the full year, sales increased 27 percent to $79.6 million from $62.6 million in 1995.
Net income for 1996 was $4.6 million, equal to 39 cents per share, compared with $8.9 million, or 83 cents per share, in the
prior year. Net income for 1995 benefited from the recognition of $3.0 million, or 28 cents per share, in tax-loss carry
forwards and related tax assets.
The company shipped 157 rapid prototyping systems (which included six of the company's new Actua 2100 office systems)
in 1996, compared to 120 systems in 1995. At December 31, 1996, backlog totaled $8.9 million, of which $3.3 million
represented the new Actua. Year-end backlog in 1995 was $11 million, which included an adjustment of' approximately
$1.3 million.
Arthur B. Sims, chairman and chief executive officer, commented: "We believe that several of our key strategic initiatives
launched last year will begin to generate significant returns in 1997 and beyond. The fourth quarter witnessed the first
commercial shipments of our new Actua office system which represents an important extension of the company's product
line. We believe that Actua will be a significant contributor to our revenues in 1997, and we are continuing to introduce other
important products such as our new SmartStart(TM) entry-level rapid prototyping system.
"In addition, all fourth quarter production was carried out in 3D's new, state-of-the-art manufacturing facility in Grand
Junction, Colorado. We are currently optimizing production there to achieve greater operating and cost efficiencies as 1997
progresses. The new facility greatly expands the company's production capacity and positions us to capitalize on the many
opportunities which we see ahead in a high-growth industry.
"During the past year, we moved from an indirect to a direct sales model in the U.S. in order to increase sales momentum
and position ourselves closer to our market. That important transition has moved forward on a fast track, with the hiring and
training of our new sales force. We expect our new sales team to be fully up to speed before the second half of this year.
"While the first quarter may reflect some continued slowness in our U.S. market, we are optimistic about the outlook for
1997 and the longer-term future. 3D Systems offers the industry's broadest range of products to provide customers with a
full-range of solutions to their rapid prototyping requirements. We are dedicated to investing in the business, and competing
aggressively for market leadership."
3D Systems develops, manufactures and markets solid-imaging systems. In manufacturing, 3D's products fabricate solid
objects using input from CAD/CAM systems, subsequently reducing the time and costs of bringing new products to market.
Major applications include rapid prototyping and tooling for products in a variety of manufacturing industries worldwide.
These include automotive, aerospace, computer, electronic and consumer products.
Except for the historical information contained herein, the matters discussed in this news release (and including, specifically,
the Actua system's contribution to 1997 revenues and statements in this press release with respect to 1997 quarterly and
annual results) are forward-looking statements that involve risks and uncertainties, including the timely availability and
acceptance of new products, the impact of competitive products and pricing, industrywide economic conditions, the
management of growth and other risks detailed from time to time in the company's SEC reports on forms 1O-K and 1O-Q.
For investor information and faxed financials or press releases on demand, please call our shareholder communications
service at 800/757-1799.
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
For the Three Month Periods and Years Ended
December 31, 1995 and 1996
Three Month Periods Ended
December 31,
(Unaudited) Years Ended December 31,
1995 1996 1995 1996
Sales:
Products $13,606,278 $15,033,628 $43,543,618 $53,228,089
Services 5,085,133 7,086,348 19,038,323 26,403,414
Total sales 18,691,411 22,119,976 62,581,941 79,631,503
Cost of sales:
Products 6,113,410 7,421,043 19,328,055 24,893,210
Services 3,246,144 4,834,529 11,935,564 16,905,678
Total cost of sales 9,359,554 12,255,572 31,263,619 41,798,888
Gross profit 9,331,857 9,864,404 31,318,322 37,832,615
Operating expenses:
Selling, general and
administrative 6,804,517 6,242,516 20,302,494 24,747,871
Research and development1,850,935 1,792,649 6,108,799 7,665,092
Total operating expenses8,655,452 8,035,165 26,411,293 32,412,963
Income from operations 676,405 1,829,239 4,907,029 5,419,652
Interest income 532,107 347,141 1,256,597 1,541,229
Interest expense (6,692) (82,609) (41,967) (128,860)
Income before provision
for income taxes 1,201,820 2,093,771 6,121,659 6,832,021
Provision for income
taxes (benefit) (108,269) 432,169 (2,795,663) 2,232,704
Net income $1,310,089 $1,661,602 $8,917,322 $4,599,317
Net income per share $.11 $.14 $.83 $.39
Weighted average number
of shares outstanding
during the period 11,751,466 11,676,962 10,707,825 11,741,635
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
ASSETS
December 31, 1995 December 31, 1996
Current assets:
Cash and cash equivalents $38,258,927 $24,356,441
Restricted cash 766,000 722,000
Short-term investments 0 3,759,492
Accounts receivable, less
allowances for doubtful accounts
of $368,399 at December 31, 1995
and $406,178 at December 31, 1996 14,439,863 19,601,383
Current portion of lease receivables 0 987,362
Inventories 7,293,077 12,309,588
Deferred tax assets 5,301,118 2,958,227
Prepaid expenses and other current assets1,608,203 2,332,337
Total current assets 67,667,188 67,026,830
Property and equipment, net 8,274,811 14,452,504
Licenses and patent costs, net 3,520,500 3,660,568
Deferred tax assets 1,029,000 1,821,000
Lease receivables, less current portion 0 3,773,573
Other assets 1,059,507 1,504,382
$81,551,006 $92,238,857
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,305,349 $3,805,930
Accrued liabilities 6,672,261 6,890,343
Current portion of long-term debt 0 100,000
Customer deposits 1,233,305 894,111
Deferred revenues 3,768,121 5,572,892
Total current liabilities 16,979,036 17,263,276
Other liabilities 1,621,515 1,472,991
Long-term debt, less current portion 0 4,800,000
18,600,551 23,536,267
Stockholders' equity:
Preferred stock, $.001 par value.
Authorized 5,000,000 shares; none issued
Common stock, $.001 par value.
Authorized 25,000,000 shares; issued
and outstanding 11,279,232 at December
31, 1995 and 11,358,892 at December
31, 1996 11,279 11,359
Capital in excess of par value 71,850,602 72,527,768
Accumulated deficit (8,907,788) (4,308,471)
Cumulative translation adjustment (3,638) 471,934
Total stockholders' equity 62,950,455 68,702,590
$81,551,006 $92,238,857
SOURCE 3D Systems Corp. |
