SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 24, 1997
3D SYSTEMS CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 0-22250 95-4431352
(State of Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
26081 Avenue Hall
Valencia, California 91355
(Address of Principal Executive Offices)
(805) 295-5600
(Registrant's Telephone Number)
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ITEM 5. OTHER EVENTS
------------
Reference is made to the press release of Registrant, issued on April
24, 1997, which contains information meeting the requirements of this Item
5, and which is incorporated herein by this reference. A copy of this
press release is attached to this Form 8-K as Exhibit 99.1.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
May 13, 1997 3D SYSTEMS CORPORATION
By /s/ Edward C. Ferrier
----------------------------
Edward C. Ferrier
Controller and Acting Chief
Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibits Page Number
- -------- -----------
99.1 Press Release dated April 24, 1997. 5
NEWS RELEASE
CONTACT: FOR IMMEDIATE RELEASE
Mary E. Woods
Investor Relations
805/295.5600 Ext. 2508
3D SYSTEMS CORPORATION ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
VALENCIA, CALIF. - APRIL 24, 1997 - 3D Systems Corporation (Nasdaq -
NNM:TDSC) today reported first quarter net income of $387,546, equal to 3
cents per share, compared with $1.1 million, or 10 cents per share, a year
ago. For the three months ended March 31, 1997, revenues increased 12
percent to $21.5 million from $19.2 million last year.
In announcing the earnings, Arthur B. Sims, chairman and chief
executive officer, reported that the company continued to experience
weakness in domestic sales during the first quarter. "Late last year we
began replacing our independent distributors in the U. S. with direct sales
personnel. We knew that we would pay a price in diminished sales
productivity during the transition. Our sales force is now approaching full
strength, although nearly half the team has been with us for under four
months. We believe that sales productivity should increase in the quarters
ahead as the team gains experience and builds its pipeline of prospects.
"Actions are underway to increase operating efficiency in other areas,
as well," he said. "We have appointed Dr. Richard Balanson president and
chief operating officer and a
<PAGE>
director of the company, moved to restructure the senior staff, and have
implemented a modest reduction in force involving approximately five
percent of the domestic workforce, primarily at our corporate
headquarters." In connection with the management restructuring and
reduction in force, the company expects to record non-recurring pre-tax
expenses in the second quarter approximating $500,000 related to severance
benefits.
"Due to the slow domestic order pace, backlog as we enter the second
quarter was approximately one-half of the prior year's backlog entering the
second quarter and, in view of these factors, the company expects to post a
modest loss in the second quarter before the effects of the restructuring
charge. However, we continue to be optimistic about the second half," Sims
stated.
"Despite the weakness domestically, revenues of 3D Systems Europe
posted a 70 percent increase over last year's first quarter," he said.
"In key areas we continue to bring new talent into the company," Sims
commented. "These include a highly experienced senior director for the
Actua[TRADEMARK] product line, and a general manager for the Asia-Pacific
region. This executive has extensive experience in the region and will be
based in Hong Kong."
3D Systems Corporation develops, manufactures and markets solid-
imaging systems. In manufacturing, 3D's products fabricate solid objects
using input from CAD/CAM systems, substantially reducing the time and cost
of bringing new products to market. Major applications include rapid
prototyping and tooling for products in a variety of manufacturing
PAGE 2
<PAGE>
industries worldwide, including automotive, aerospace, medical computer,
electronic and consumer products.
Except for the historical information contained in this news release,
the matters discussed (including increases in sales productivity by the
company's new sales force, and second quarter and second half results) are
forward-looking statements that involve uncertainties such as the timely
development and acceptance of new products, the impact of competitive
products and pricing, industry-wide economic conditions, the management of
growth and other risks detailed from time to time in the company's SEC
reports, including Form 10-K for the year ended December 31, 1996.
# # #
For investor information and faxed financials or press releases on demand,
please call our shareholder communications service at 800/757.1799.
PAGE 3
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<TABLE>
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
<CAPTION>
(Unaudited)
ASSETS December 31, 1996 March 28, 1997
----------------- --------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $24,356,441 $22,385,070
Restricted cash 722,000 655,000
Short-term investments 3,759,492 1,753,975
Accounts receivable, less allowances for
doubtful accounts of $406,178 (1996) and $291,841 (1997) 19,601,383 19,400,170
Current portion of lease receivables 987,362 1,532,646
Inventories 12,309,588 14,257,187
Deferred tax assets 2,958,227 2,764,512
Prepaid expenses and other current assets 2,332,337 2,046,611
----------- ------------
Total current assets 67,026,830 64,795,171
Property and equipment, net 14,452,504 15,261,241
Licenses and patent costs, net 3,660,568 3,565,204
Deferred tax assets 1,821,000 1,821,000
Lease receivables, less current portion 3,773,573 6,326,568
Other assets 1,504,382 1,520,356
----------- ------------
$92,238,857 $93,289,540
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,805,930 $ 4,992,360
Accrued liabilities 6,890,343 5,938,670
Current portion of long-term debt 100,000 95,000
Customer deposits 894,111 898,777
Deferred revenues 5,572,892 6,939,217
----------- ------------
Total current liabilities 17,263,276 18,864,024
Other liabilities 1,472,991 1,434,010
Long-term debt, less current portion 4,800,000 4,750,000
----------- ------------
23,536,267 25,048,034
----------- ------------
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 11,358,892 (1996)
and 11,361,124 (1997) 11,359 11,361
Capital in excess of par value 72,527,768 72,540,271
Retained earnings (deficit) (4,308,471) (3,920,925)
Cumulative translation adjustment 471,934 (389,201)
----------- ------------
Total stockholders' equity 68,702,590 68,241,506
----------- ------------
$92,238,857 $93,289,540
=========== ============
</TABLE>
<TABLE>
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
(Unaudited)
<CAPTION>
Three Month Periods Ended
-----------------------------------
March 29, 1996 March 28, 1997
<S> <C> <C>
Sales:
Products $13,676,883 $13,597,856
Services 5,489,681 7,860,956
------------ ------------
Total sales 19,166,564 21,458,812
------------ ------------
Cost of sales:
Products 6,164,205 7,287,392
Services 3,490,589 5,502,589
------------ ------------
Total cost of sales 9,654,794 12,789,981
------------ ------------
Gross profit 9,511,770 8,668,831
------------ ------------
Operating expenses:
Selling, general and administrative 6,202,019 6,390,691
Research and development 1,825,750 1,929,834
------------ ------------
Total operating expenses 8,027,769 8,320,525
------------ ------------
Income from operations 1,484,001 348,306
Interest income 455,517 351,048
Interest expense (6,340) (58,783)
------------ ------------
Income before provision for income taxes 1,933,178 640,571
Provision for income taxes 811,935 253,025
------------ ------------
Net income $1,121,243 $387,546
============ ============
Net income per share $.10 $.03
============ ============
Weighted average number of common and common
equivalent shares outstanding during the period 11,776,743 11,757,504
============ ============
</TABLE>
