3D Systems Reports Record Third-Quarter Revenue
3 Nov 2005
VALENCIA, Calif.--Nov. 3, 2005--3D Systems Corporation
(Nasdaq:TDSC), a leading provider of rapid 3-D printing,
prototyping
and manufacturing solutions, announced today that revenue
increased 9%
in the third quarter of 2005 and 10% in the first nine
months of 2005
compared to the corresponding 2004 periods.
"Revenue growth in the third quarter of 2005 continues to reflect
the strong underlying trends we mentioned in previous
quarters as we
move forward with the transformation of our business model,
product
mix and product portfolio with increasingly positive
traction," said
Abe Reichental, 3D Systems' president and chief executive
officer.
Revenue from systems and other products increased by more than 10%
in both the third quarter and first nine months of 2005
compared with
the prior-year periods. These increases reflected continuing
strong
unit demand from large-frame systems, further fueled by the
introduction of new-generation selective laser sintering and
stereolithography rapid manufacturing systems and a
favorable
price/mix effect.
Revenue from engineered materials and composites increased by over
20% in both the third quarter and first nine months,
primarily
reflecting strong unit growth from VisiJet(R) 3-D printing
materials,
newly introduced SLA(R) and SLS(R) plastic materials and the
company's
success in attracting additional customers to its growing
portfolio of
engineered materials and composites.
Revenue from services declined by approximately 6% and 1% in the
third quarter and first nine months, respectively, primarily
due to
lower revenue from customer training, maintenance and
upgrade
services, reflecting a deliberate shift in the company's
marketing
strategy to de-emphasize its ongoing support of certain
legacy
systems.
Revenue By Class of Product and Service
($ in millions)
----------------------------------------------------------------------
Third Quarter First Nine
Months
------------------------------------------
Product or Service 2005 2004 % Change
2005 2004 % Change
----------------------------------------------------------------------
Systems and other products $12.1 $10.9 11%
$34.1 $30.6 11%
----------------------------------------------------------------------
Materials
$10.9 $8.8 23% $31.9 $26.4 21%
----------------------------------------------------------------------
Services
$9.3 $9.9 (6)% $29.6 $30.0 (1)%
----------------------------------------------------------------------
Total
$32.3 $29.7
9% $95.5 $87.1 10%
----------------------------------------------------------------------
"While on the surface third-quarter revenue growth is somewhat
disappointing, it is worth noting that we ended the third
quarter with
over $9.8 million of orders for shipments to be made in the
fourth
quarter and in subsequent periods, primarily for the
purchase of
systems. Over $6.4 million of those orders are scheduled for
shipment
in the fourth quarter of this year, and the balance of them
are
scheduled to be shipped in 2006. Given our relatively short
lead times
for delivery of our systems, we typically end every quarter
with
little or no backlog. The substantial backlog of orders at
the end of
the third quarter is of such magnitude that it gives us
confidence
that our business model is continuing to gain traction and
momentum.
"Notwithstanding our successes to date, the kind of business
transformation that we are involved in does not come without
corresponding investments and costs of the kind reflected in
our
third-quarter profitability," continued Reichental.
With this higher level of revenue and corresponding investments
and costs for the third quarter of 2005:
-- The company reported
that operating income declined to $1.5
million in the third
quarter from $2.3 million in the third
quarter of 2004,
primarily reflecting lower margins associated
with its service
business, higher R&D expenses, and higher
SG&A expenses
arising primarily from the absence this year of
benefits that the
company recognized in the 2004 quarter from
reductions in various
accruals.
-- The company reported
that net income available to common
stockholders declined to
$0.7 million from $1.7 million in the
2004 quarter, primarily
due to its lower operating income.
And for the first nine months of 2005:
-- The company reported a
fourfold increase in operating income
to $4.8 million from
$1.2 million in the 2004 period.
-- The company reported
that net income available to common
stockholders grew to
$2.4 million, a $4.4 million improvement
over the company's $2.0
million loss in the 2004 period,
primarily due to its
higher operating income.
Foreign currency translation had a slightly unfavorable effect on
consolidated revenue for the 2005 quarter and a 1.1%
favorable impact
on revenue for the first nine months.
"Our newly introduced state-of-the-art rapid manufacturing
systems, our initiatives to increase recurring revenue from
materials
and composites, continuing growth in our InVision(TM) 3-D
printing
installed base and the 2004 restructuring of our U.S. sales
organization all contributed to the higher level of revenue
in the
third quarter," added Reichental.
"Sales of new products introduced within the last two years grew
to almost 28% of total revenue in the quarter and over 23%
of total
revenue in the first nine months of the year, validating our
accelerated product mix transformation and the investments
in R&D and
other related field support activities that we have made
during the
past two years," continued Reichental.
The company experienced strong revenue growth from its operations
in the U.S., which rose almost 28% in the third quarter and
17% in the
first nine months of 2005 as the company realized the
benefits of the
2004 restructuring and realignment of its U.S. sales
organization.
Revenue from European operations increased only modestly in
the first
nine months because of unfavorable economic conditions in
several
European countries and reflected a slight increase for the
quarter.
Although revenue from Asia-Pacific operations in the first
nine months
was almost 8% ahead of last year's period, it decreased by
14% in the
third quarter compared to 2004 levels, reflecting the lumpy
effect
that large-frame systems' sales can have on parts of our
business in a
given reporting period.
Operating Highlights
Third Quarter and First Nine Months of 2005
($ in millions except for per share amounts)
----------------------------------------------------------------------
Third Quarter First Nine Months
-------------------------------------------
Operating Highlights 2005
2004 % Change 2005 2004 % Change
----------------------------------------------------------------------
Revenue
$32.3 $29.7
9% $95.5 $87.1 10%
----------------------------------------------------------------------
Gross profit
$14.9 $14.1 $42.2 $38.4
%
of Revenue
46% 47% 6% 44% 44% 10%
----------------------------------------------------------------------
Operating expenses $13.4
$11.7 $37.4 $37.2
%
of Revenue
41% 40% 14% 39% 43% 1%
----------------------------------------------------------------------
Operating income
$1.5 $2.3
$4.8 $1.2
%
of Revenue
5% 8% (37)% 5% 1% 291%
----------------------------------------------------------------------
Net income (loss) to common
stockholders
$0.7 $1.7
$2.4 ($2.0)
%
of Revenue
2% 6% (56)% 2% (2)%
NM
----------------------------------------------------------------------
Diluted income (loss) per
share to common
stockholders
$0.05 $0.12 (58)% $0.15 ($0.16) NM
----------------------------------------------------------------------
Unrestricted cash $26.0
$19.9 31% $26.0 $19.9 31%
----------------------------------------------------------------------
Depreciation and
amortization
$1.6 $1.8
$4.7 $5.2
%
of Revenue
5% 6% (13)% 5% 6% (9)%
----------------------------------------------------------------------
NM=not meaningful
Gross profit increased by 6% to $14.9 million for the 2005 quarter
and by 10% to $42.2 million in the first nine months of
2005. Gross
profit margin declined by 1.5 percentage points in the third
quarter
compared to last year's quarter reflecting primarily the
effect of our
shift in service strategy but increased by a modest amount
in the
first nine months of 2005 compared to the 2004 period.
Product cost of sales continued to benefit from outsourcing
activities but was adversely impacted during the nine-month
period by
the unfavorable effect of foreign currency transaction items
and
higher warranty costs. Service cost of sales was adversely
affected by
increased spending for field service and training activities
associated with the significant number of new product
introductions
and a special compensation-related charge.
Gross Profit Margins
($
in millions)
----------------------------------------------------------------------
Third Quarter First Nine Months
------------------------------------------
2005 2004 % Change 2005 2004 %
Change
----------------------------------------------------------------------
Products
$12.1 $9.9 $32.5 $27.0
%
Revenue
53% 50% 22% 49% 47%
20%
----------------------------------------------------------------------
Services
$2.8 $4.1
$9.7 $11.4
%
Revenue
30% 42% (34)% 33% 38%
(14)%
----------------------------------------------------------------------
Total
$14.9 $14.1 $42.2 $38.4
%
Revenue
46% 47% 6% 44% 44% 10%
----------------------------------------------------------------------
Total operating costs increased by 1.8 percentage points to 41% of
revenue in the third quarter but declined by 3.6 percentage
points to
39% of revenue in the first nine months of 2005 compared to
the
corresponding period of 2004.
Selling, general and administrative expenses increased $1.2
million in the third quarter primarily due to the absence in
the 2005
period of the benefit in 2004 of reductions in certain
accruals. The
$0.4 million decrease during the first nine months arose
predominantly
from lower legal fees.
Strategic and tactical R&D expenditures increased to $3.4 million
in the third quarter of 2005 from $2.6 million in 2004, and
increased
by $1.1 million for the first nine months of 2005. In both
periods,
these costs related to activity with selected R&D
projects and R&D
costs associated with new products. The company expects
R&D
expenditures to be in the range of 7.5% to 8.5% of total
revenue for
the full year 2005.
"We believe that we are benefiting increasingly from our strategic
initiatives, and it is worth noting that on a year-to-date
basis we
are achieving far greater results from comparable
expenditures,"
continued Reichental. "We are very pleased with the
positive and
enthusiastic reception we experienced from early adopters of
our new
Sinterstation(R) Pro and Viper(TM) Pro systems and with the
continued
strong top-line growth in the third quarter from our rapid
manufacturing and 3-D printing initiatives, validating our
ongoing
investments in R&D and other related field service
operations. We
believe that the continued strong growth of our materials'
revenue
justifies the cost of our investment in previous quarters in
connection with marketing campaigns to attract additional
customers to
our new and differentiated value proposition," said
Reichental.
Despite investments of $9.5 million during the quarter in
inventory, progress payments to contract manufacturers and
R&D
associated with new product roll-out and development, cash
and cash
equivalents declined only $2.1 million during the quarter to
$26.0
million at September 30, 2005. Accounts receivable days'
sales
outstanding increased by less than one day compared to
2004's
third-quarter.
"We are very fortunate to have the resources that enable us to
make substantial investments to enhance our overall business
model,
further optimize our cost structure and continue to improve
our
customer's overall satisfaction and bottom line.
"In keeping with our objectives, we are announcing separately
today that we are embarking on a program to move to a new
headquarters
and R&D facility that will combine our Valencia,
California and Grand
Junction, Colorado facilities. This program should enable us
to effect
cost savings, gain further efficiencies and enhance customer
responsiveness. We are also currently devoting significant
resources
to converting our global information technology systems to
an
Oracle-based ERP system. We expect this system to be
implemented
during the first and second quarters of 2006. And we are
continuing
with substantial R&D spending for new systems and new
engineered
materials and composites," concluded Reichental.
3D
Systems will discuss its operating results for the third
quarter and first nine months of 2005, as well as its
relocation
plans, on a conference call and audio web cast to be held at
11:00
a.m. Eastern Time (8:00 a.m. Pacific Time) today. Details
are set
forth below.
Third-quarter business highlights:
-- Announced the
availability of Viper(TM) Pro SLA(R) system, an
advanced, flexible,
high-capacity stereolithography
manufacturing system.
The modular Viper Pro SLA system enables
customers to mass
customize and produce high-quality, end-use
parts, patterns, wind
tunnel models, fixtures and tools
consistently and economically.
The modular system is available
in three configurations,
including a "dual vat" configuration,
that enables customers
to build parts from different materials
simultaneously, and a
single, extra-large vat configuration,
that enables
customers to build parts as large as 1.5 meters.
-- Announced a company-wide
campaign to raise disaster relief
funds for victims of
Hurricane Katrina.
-- Announced that a major
Japanese automaker purchased a
Sinterstation(R) Pro
SLS(R) system, model 230, to create fully
functional parts and
assemblies to test and incorporate into
concept vehicles.
-- Settled pending patent
litigation with Objet Geometries, Ltd.
on a favorable basis that
is not material to 3D Systems. Under
the terms of the
settlement, 3D Systems and Objet waived all
claims for damages with
respect to the pending litigation.
Both companies licensed
various patents relating to 3-D
printing to each other.
-- Announced the purchase
of a Sinterstation(R) Pro SLS(R)
system, model 230, by
Butler Tool & Design.
Conference Call and Webcast Details
Subject: Third-quarter and nine-month 2005 financial results
and
relocation plans
Date:
November 3, 2005
Time:
8:00 a.m. PST (11:00 a.m. EST)
Access: To
access the conference call, dial 877-791-4796 (or
706-679-6014 from
outside the United States). The conference
call will be
webcast live on 3D Systems' web site at
www.3dsystems.com
under the Investor Relations' section.
Listeners should
go to the web site prior to the call to
register and to
download and install any necessary audio
software.
A recording will
be available two hours after completion of
the call for seven
days. To access the recording, dial
800-642-1687 (or
706-645-9291 from outside the United States)
and enter 9428384,
the conference call ID number. The
recorded webcast will also be available
at www.3dsystems.com.
3D
Systems' complete suite of customer solutions includes:
-- 3-D Printing systems,
which accept digital input from a
three-dimensional CAD
station, convert the digital file one
horizontal slice at a
time. The standard (SR) and
high-resolution (HR)
printers jet hot-melted plastic material
in an additive
layer-by-layer build-up to create a solid part.
The LD unit uses layered
deposition (LD) technology to build
complex geometrical
shapes one slice thickness at a time. 3-D
Printers enable
designers, engineers, architects and marketers
to communicate their
concepts frequently, and to substantially
reduce the time it takes
to bring new products to market.
-- Stereolithography or
SLA(R) systems convert proprietary
materials and composites
into solid cross-sections, layer by
layer, until the desired
parts are built. SLA(R) systems are
capable of making
multiple parts of different geometries and
shapes at the same time
and are designed to produce
prototypes, patterns or
end-use parts that have a wide range
of sizes and shapes.
-- Selective Laser
Sintering or SLS(R) systems use heat to melt
and fuse, or sinter,
powdered materials into solid
cross-sections, layer by
layer, until the desired parts are
complete. SLS(R) systems
can create parts from a variety of
plastic and metal
materials and composites and are capable of
processing multiple
parts within the same build cycle.
-- Engineered materials and
composites that the company blends
and markets under a
variety of brand names for use in all of
the company's systems to
produce high-quality models,
prototypes and parts.
Stereolithography materials are marketed
under the Accura(R)
brand, selective laser sintering materials
under the DuraForm(R),
LaserForm(TM) and CastForm(TM) brands,
and 3-D
printing materials under the VisiJet(R) brand. The
company also distributes
additional materials and composites
that are manufactured by
DSM Somos(R) and Dreve in order to
enhance the portfolio of
solutions available from the company.
-- Software for proprietary
part preparation for use on personal
computers and
engineering workstations. These proprietary
software packages
generate the information required by the
company's SLS(R), SLA(R)
and 3-D printing systems to create
three-dimensional models
and parts.
-- Services that the
company provides include a suite of
comprehensive customer
services and local field support that
are provided on a
worldwide basis for all of the company's
systems. Such services
and support include extended system
warranties, an extensive
menu of annual service agreement
options, and a wide
variety of software and hardware upgrades
and performance
enhancement packages for legacy systems.
Broad Applications and End-Uses:
-- 3-D Printing system
solutions are used for concept-modeling
and three-dimensional
printing applications. 3-D printed parts
are used primarily for
visualizing and communicating
mechanical design
applications. They are also used for other
applications including
supply-chain management, architecture,
art, surgical modeling,
marketing and entertainment.
-- Rapid prototyping system
solutions are used for rapid
prototyping
applications, including the generation of product
concept models,
functional prototypes and master-casting and
tooling patterns that
are often used as an efficient,
cost-effective means of
evaluating product designs.
-- Rapid manufacturing
system solutions are used for rapid
manufacturing
applications to manufacture end-use parts, jigs,
fixtures, tools and
patterns directly from a digital image.
The company's rapid
manufacturing customers produce end-use
parts without the need
for expensive tooling or molds and
without lengthy set-ups,
resulting in significant savings,
flexibility and mass
customization capabilities.
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
which explicitly describe such risks and uncertainties,
readers are
urged to consider statements in the future tenses or that
include the
terms "believes," "belief,"
"expects," "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.
Forward-looking statements are based upon management's
current
expectations concerning future events and trends and are
necessarily
subject to uncertainties, many of which are outside the
control of the
company. The factors stated under the heading
"Forward-Looking
Statements" and "Cautionary Statements and Risk
Factors" in
management's discussion and analysis of results of
operations and
financial condition, which appear 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 rapid 3-D printing,
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 by phoning 888-337-9786, ext. 2882 (or 661-295-5600, ext.
2882 from
outside the United States), or via email at
moreinfo@3dsystems.com.
3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Operations
Three Months and
Nine Months Ended September 30, 2005
and September 30, 2004
(in thousands, except per share amounts)
Three
Months Ended Nine Months Ended
September 30, September 30,
-----------------
-----------------
2005
2004
2005 2004
-------- --------
-------- --------
(Unaudited) (Unaudited)
Revenue:
Products
$23,005 $19,730 $65,908 $57,072
Services
9,319 9,921 29,617 29,987
-------- --------
-------- --------
Total
revenue
32,324 29,651 95,525 87,059
Cost of sales:
Products
10,909
9,820
33,438 30,045
Services
6,562
5,774
19,884 18,620
-------- --------
-------- --------
Total
cost of sales
17,471 15,594 53,322 48,665
-------- --------
-------- --------
Gross profit
14,853 14,057 42,203 38,394
-------- --------
-------- --------
Operating expenses:
Selling,
general and
administrative
9,917
8,751
28,513 28,883
Research and
development 3,429 2,613 8,805 7,754
Severance and
restructuring 42 380
49
521
-------- --------
-------- --------
Total
operating expenses 13,388 11,744 37,367 37,158
-------- --------
-------- --------
Income from operations
1,465
2,313
4,836 1,236
Interest and other expense, net 204 418 734
1,399
-------- --------
-------- --------
Income (loss) before provision
for income
taxes
1,261
1,895
4,102
(163)
Provision (benefit) for income
taxes
100
(231) 447 752
-------- --------
-------- --------
Net income (loss)
1,161 2,126 3,655 (915)
Preferred stock dividends
412
413
1,268 1,123
--------
-------- -------- --------
Net income (loss) available to
common
stockholders
$749 $1,713 $2,387 $(2,038)
======== ========
======== ========
Shares used to calculate basic
net income
(loss) available
to common
stockholders
per share
(1)
15,146 13,249 14,838 13,116
======== ========
======== ========
Basic net income (loss)
available to
common
stockholders
per share (1) $0.05 $0.13 $0.16 $(0.16)
======== ========
======== ========
Shares used to calculate
fully diluted
net income
(loss)
available to common
stockholders
per share (1)
16,222 14,098 15,979 13,116
======== ========
======== ========
Diluted net income (loss)
available to
common
stockholders
per share (1) $0.05 $0.12 $0.15 $(0.16)
======== ========
======== ========
(1) See Schedule 1 for the calculation of basic and diluted
net
income (loss) available to common stockholders per share.
3D SYSTEMS CORPORATION
Condensed Consolidated Balance Sheets
September 30, 2005 and December 31, 2004
(in thousands)
Sept. 30, Dec. 31,
2005
2004
(Unaudited) (2)
--------- ---------
ASSETS
Current assets:
Cash and cash
equivalents
$25,991 $26,276
Accounts
receivable, net
21,631 22,209
Inventories,
net
13,417
9,512
Prepaid
expenses and other current assets 10,195 5,507
--------- ---------
Total current assets
71,234 63,504
Property and equipment, net
10,449
9,500
Goodwill
44,790 45,135
Intangible assets, net
9,201 10,808
Restricted cash
1,200
1,200
Other assets, net
852 1,349
--------- ---------
$137,726 $131,496
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current
portion of long-term debt
$200
$180
Accounts
payable
7,866
6,937
Accrued
liabilities
9,996 13,447
Customer
deposits
2,040 819
Deferred
revenue
12,008 13,797
--------- ---------
Total current liabilities
32,110 35,180
Long-term debt, less current portion
3,545 3,745
Convertible subordinated debentures
22,604 22,704
Other liabilities
1,018
1,607
--------- ---------
Total liabilities 59,277 63,236
Series B convertible redeemable preferred stock 15,226 15,196
Stockholders' equity:
Common stock,
authorized 60,000 shares, issued and
outstanding 15,284 (2005) and 14,490 (2004) 15 14
Additional
paid-in capital
107,041 97,859
Deferred
compensation
(1,647)
(45)
Treasury
stock, at cost
(71)
(68)
Accumulated
deficit in earnings (41,226) (44,881)
Accumulated
other comprehensive income (loss) (889) 185
--------- ---------
Total stockholders' equity
63,223 53,064
---------
---------
$137,726 $131,496
========= =========
(2) The condensed balance sheet at December 31, 2004 has
been
derived from the audited financial statements at that date but
omits certain of the information required by generally accepted
accounting principles for complete financial statements.
3D SYSTEMS CORPORATION
Condensed
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2005
and September 30, 2004
(in thousands)
Nine Months Ended
September
30,
-----------------
2005 2004
-------- --------
(Unaudited)
Cash flows from operating activities:
Net income (loss)
$3,655 $(915)
Adjustments to reconcile net income (loss)
to
net cash used in operating activities:
Depreciation and amortization
4,715 5,178
Bad debt provision
16
10
Stock-based compensation expense
699
356
Payment of interest on employee note with stock
-
(4)
(Gain) loss on disposition of property
and
equipment
(54) 141
Changes in operating accounts:
Accounts
receivable
(909) 2,944
Inventories, net
(5,909) (4,975)
Prepaid
expenses and other current assets (4,534) (1,620)
Other
assets
229
140
Accounts
payable
1,044 455
Accrued
liabilities
(2,599) (2,263)
Customer
deposits
1,228
(16)
Deferred
revenue
(1,131) (2,534)
Other
liabilities
(460) (821)
-------- --------
Net cash used in operating activities
(4,010) (3,924)
-------- --------
Cash flows from investing activities:
Purchase
of property and equipment
(1,873) (314)
Proceeds
from sale of property and equipment
98
-
Additions to licenses and patents
(504) (269)
Software
development costs
(635)
(62)
Payment
of accumulated earnings to OptoForm
minority owner
-
(49)
-------- --------
Net cash used in investing activities
(2,914) (694)
-------- --------
Cash flows from financing activities:
Stock
option, stock purchase plan and
restricted stock proceeds
8,020 2,951
Repayment of long-term debt
(180) (165)
Payments
under obligation to former 3D Systems
S.A. stockholders
(585) (625)
Payment
of preferred stock dividends
(785) (632)
Stock
registration costs
(211) (388)
Payment
of accrued liquidated damages
(36) (433)
-------- --------
Net cash provided by financing activities
6,223
708
Effect of exchange rate changes on cash
416 (190)
-------- --------
Net decrease in cash and cash equivalents
(285) (4,100)
Cash and cash equivalents at the beginning
of the
period
26,276 23,954
-------- --------
Cash and cash equivalents at the end
of the
period
$25,991 $19,854
======== ========
Selected Supplemental Cash Flow Information:
Interest payments
$762 $1,274
Income tax payments
1,296 1,178
Non-cash items:
Conversion of 6% convertible subordinated
debentures
$100
$-
Conversion of convertible preferred stock 26 44
Accrued
dividends on preferred stock
1,211 1,123
Accrued
liquidated damages
-
393
Transfer
of equipment from inventory to
property and equipment, net
2,066 1,653
Transfer
of equipment to inventory from
property and equipment, net
586
558
Schedule 1
The following is a reconciliation of the numerator and
denominator
of the basic and diluted net income (loss) available to
common
stockholders per share computations:
Three Months Ended
Nine Months Ended
September 30, September 30,
----------------- -----------------
2005 2004
2005 2004
-------- --------
-------- --------
(Unaudited) (Unaudited)
Basic net income (loss) available to common
stockholders
per share:
Numerator:
Net income (loss) available
to common
stockholders
$749 $1,713 $2,387 $(2,038)
======== ========
======== ========
Denominator:
Weighted average common
shares
outstanding
15,146 13,249 14,838 13,116
======== ========
======== ========
Basic net income (loss)
available to
common
stockholders,
per share $0.05 $0.13
$0.16 $(0.16)
======== ========
======== ========
Diluted net income (loss) available
to common
stockholders per share:
Numerator:
Net income (loss) available
to common
stockholders
$749 $1,713 $2,387 $(2,038)
Add: Preferred stock dividend -
-
- -
Add: Interest on 6%
convertible
subordinated
debentures
- - - -
Add: Interest on 7%
convertible
subordinated
debentures
(a)
-
- - -
-------- --------
-------- --------
Diluted net income (loss)
available to
common
stockholders,
per share
$749 $1,713 $2,387 $(2,038)
======== ========
======== ========
Denominator:
Weighted average common
shares
outstanding
15,146 13,249 14,838 13,116
Add: Effect of assumed
exercise of
options and
vesting of
restricted stock
1,076
849
1,141 -
Add: Effect of assumed
conversion of
6%
subordinated
convertible
debentures
- - - -
Add: Effect of assumed
conversion of
7%
subordinated
convertible
debentures
(a)
- - - -
Add: Effect of assumed
conversion of
preferred
stock
- - - -
-------- --------
-------- --------
Diluted weighted average
common shares
outstanding
16,222 14,098 15,979 13,116
======== ========
======== ========
Diluted net income (loss) per
common
share
$0.05
$0.12 $0.15 $(0.16)
======== ========
======== ========
(a) All outstanding 7% convertible subordinated debentures
had
been converted into Common Stock as of December 31, 2004.
For the three months and nine months ended September 30, 2005,
shares of common stock issuable upon the conversion of outstanding
convertible preferred stock and convertible subordinated
debentures were excluded from the calculation of diluted net
income per share because their effects would have been
anti-dilutive; that is, they would have increased net income per
share. Weighted average shares outstanding for the quarterly and
year-to-date periods used to calculate diluted net income per
share include the effect of the assumed exercise of 1,753 and
1,978, respectively, of in-the-money stock options outstanding
throughout each respective period together with the dilutive
effect of those in-the-money stock options that were canceled or
exercised in each period, prorated for the period of time they
remained outstanding. Pursuant to the treasury-stock method, the
assumed exercise of these options resulted in the inclusion of a
net 1,076 and 1,141 diluted shares of common stock, respectively.
At
September 30, 2005, there were 4,887 potentially dilutive
securities that were not included in the diluted calculation
comprised of 50 out-of-the-money stock options, 2,617 shares
issuable upon conversion of preferred stock and 2,220 shares
issuable upon conversion of the 6%
convertible subordinated
debentures.
For the three and nine months ended September 30, 2004, shares of
common stock issuable upon the conversion of convertible preferred
stock and convertible subordinated debentures were excluded from
the calculation of diluted net income (loss) per share because
their effects would have been anti-dilutive; that is, they would
have increased net income per share or reduced net loss per share
available to common stockholders. In-the-money stock options were
included for the three months ended September 30, 2004, but were
excluded for the nine-month period then ended.
# # #
CONTACT: 3D Systems Corporation
Elizabeth Goode,
661-295-5600
fax: 661-554-0109
GoodeE@3dsystems.com
www.3dsystems.com
