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): October 15, 1998
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)
<PAGE>
ITEM 5. OTHER EVENTS
Reference is made to the press release of Registrant, issued on October
15, 1998, 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.
October 15, 1998 3D SYSTEMS CORPORATION
By /s/ Frank J. Spina
-----------------------------------
Frank J. Spina
Vice President &
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
EXHIBITS PAGE NUMBER
- -------- -----------
99.1 Press Release dated October 15, 1998. 5
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Frank J. Spina
Vice President & Chief Financial Officer
805/295.5600, Ext. 2216
Mary E. Woods
Investor Relations
805/295.5600, Ext. 2508
3D SYSTEMS ANNOUNCES IMPROVED THIRD QUARTER RESULTS
VALENCIA, Calif., Oct. 15, 1998 -- 3D Systems Corporation (Nasdaq NMS:
TDSC) today reported third quarter net income of $477,000, equal to 4 cents a
share, up significantly from a net loss of $2.1 million, or 19 cents a share, in
the year-ago period.
Last year's third quarter included approximately $2.6 million in
non-recurring expenses for restructuring and write-off of in-process research
and development associated with the company's acquisition of assets from EOS
GmbH of Germany. Without those charges, the company would have reported a net
loss in last year's third quarter of approximately $500,000, or 4 cents a share.
Revenues for the three months ended Sept. 25, 1998 totaled $23.3
million, up from $22.3 million in the third quarter last year.
For the current nine month period, the company posted net income of $1.4
million, equal to 12 cents a share, on record revenues of $70.9 million. This
compares with a net loss of approximately $2.0 million, or 18 cents a share, on
revenues of $65.6 million in the year-earlier period.
(more)
26081 AVENUE HALL, VALENCIA, CA 91355
PH: (805) 295-5600/FX: (805) 257-1200
<PAGE>
"Our quarterly revenue growth rate was dampened somewhat by the timing
of product shipments," said Arthur B. Sims, chairman and chief executive
officer. "A number of customers placing orders in the third quarter requested
delivery in the fourth. Consequently, backlog climbed substantially, reaching
its highest level in six quarters."
Sims reported that the company continues to experience strength from
the automotive sector, with one Big Three manufacturer placing an order for
three SLA-5000s during the third quarter. Two additional sales of SLA-5000 units
to Hitachi and Toyota in Japan were directly influenced by the performance in
field trials of a new high temperature resin, he stated.
"This new high temperature resin, currently undergoing market trials in
the United States and Japan, substantially exceeds the thermal capabilities of
any material we currently offer," Sims disclosed. "We expect this material to be
commercially available by year-end.
"We enter the fourth quarter with a strengthened backlog, a solid
balance sheet and a sense of cautious optimism." he concluded.
3D Systems manufactures rapid product development systems that enable
users to move from concept models to finished parts faster, at lower cost, and
at higher quality than traditional methods. 3D Systems' equipment fabricates
solid objects using digital input from CAD/CAM/CAE computer systems,
substantially reducing the time and costs of bringing new products to market.
Major applications include concept modeling, rapid prototyping and rapid tooling
for products in a wide range of industries worldwide including automotive,
aerospace, medical, electronic and consumer products.
Except for the historical information contained in this news release, the
matters discussed include forward-looking statements that involve risks and
uncertainties including the availability and acceptance of new products, the
impact of competitive products and pricing, the ability of the company to
continue to contain expenses, dependence on key personnel, industry-wide
domestic and international economic conditions, and other risks detailed in the
company's SEC report on Form 10-K for the year ended December 31, 1997.
# # #
For current investor information, please call 3D Systems' shareholder
communication service at 800-757-1799. 3D Systems and SLA are trademarks of 3D
Systems, Inc.
<PAGE>
3D SYSTEMS CORPORATION
Consolidated Balance Sheets
<TABLE>
<CAPTION>
(Unaudited)
ASSETS DECEMBER 31, 1997 SEPTEMBER 25, 1998
----------------- ------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 12,694,831 $ 11,884,360
Short-term investments 3,498,265 4,498,841
Accounts receivable, less allowances for doubtful accounts
of $441,399 (1997) and $1,098,577 (1998) 23,618,237 25,942,350
Current portion of lease receivables 1,257,006 1,583,588
Inventories 12,164,633 11,984,084
Deferred tax assets 3,319,651 2,489,738
Prepaid expenses and other current assets 2,305,163 3,332,957
---------------------- -------------------------
Total current assets 58,857,786 61,715,918
Property and equipment, net 16,895,011 15,825,845
Licenses and patent costs, net 5,464,351 5,492,271
Deferred tax assets 3,971,000 3,971,000
Lease receivables, less current portion 3,944,462 5,469,291
Other assets 2,207,109 2,074,194
---------------------- -------------------------
$ 91,339,719 $ 94,548,519
====================== =========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,885,831 $ 4,990,516
Accrued liabilities 8,814,193 8,671,337
Current portion of long-term debt 95,000 100,000
Customer deposits 238,248 555,402
Deferred revenues 6,514,868 8,128,245
---------------------- -------------------------
Total current liabilities 20,548,140 22,445,500
Other liabilities 1,491,534 1,948,187
Long-term debt, less current portion 4,705,000 4,605,000
---------------------- -------------------------
26,744,674 28,998,687
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 11,450,071 and outstanding 11,425,071
(1997) and issued 11,564,965 and outstanding 11,339,965 (1998) 11,450 11,565
Capital in excess of par value 73,856,965 74,730,572
Notes receivable from officers --- (360,000)
Accumulated deficit (8,897,605) (7,540,661)
Cumulative translation adjustment (210,827) 248,297
Treasury stock, at cost, 25,000 shares (1997) and 225,000 shares (1998) (164,938) (1,539,941)
---------------------- -------------------------
Total stockholders' equity 64,595,045 65,549,832
---------------------- -------------------------
$ 91,339,719 $ 94,548,519
====================== =========================
</TABLE>
<PAGE>
3D SYSTEMS CORPORATION
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Month Periods Ended Nine Month Periods Ended
---------------------------------------- -----------------------------------------
Sales: SEPTEMBER 26, 1997 SEPTEMBER 25, 1998 SEPTEMBER 26, 1997 SEPTEMBER 25, 1998
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Products $ 14,615,138 $ 14,665,015 $ 42,324,460 $ 45,907,372
Services 7,678,718 8,676,773 23,231,653 24,943,325
------------------- ------------------- ------------------- --------------------
Total sales 22,293,856 23,341,788 65,556,113 70,850,697
------------------- ------------------- ------------------- --------------------
Cost of sales:
Products 8,637,195 7,628,473 23,636,439 23,957,050
Services 5,231,937 5,631,317 16,370,620 16,671,213
------------------- ------------------- ------------------- --------------------
Total cost of sales 13,869,132 13,259,790 40,007,059 40,628,263
------------------- ------------------- ------------------- --------------------
Gross profit 8,424,724 10,081,998 25,549,054 30,222,434
------------------- ------------------- ------------------- --------------------
Operating expenses:
Selling, general and administrative 7,320,339 7,559,076 20,881,633 21,677,645
Research and development 4,658,723 1,946,984 8,600,450 6,827,029
------------------- ------------------- --------------------
-------------------
Total operating expenses 11,979,062 9,506,060 29,482,083 28,504,674
------------------- ------------------- ------------------- --------------------
Income (loss) from operations (3,554,338) 575,938 (3,933,029) 1,717,760
Other income 308,663 264,969 994,333 649,611
Other expense (101,123) (139,553) (228,326) (312,136)
------------------- ------------------- ------------------- --------------------
Income before provision for income taxes (3,346,798) 701,354 (3,167,022) 2,055,235
Provision for (benefit from) income taxes (1,212,039) 224,433 (1,140,128) 698,291
------------------- ------------------- ------------------- --------------------
Net income (loss) $ (2,134,759) $ 476,921 $ (2,026,894) $ 1,356,944
=================== =================== =================== ====================
Net income (loss) per common share $ (0.19) $ 0.04 $ (0.18) $ 0.12
=================== =================== =================== ====================
Weighted average shares outstanding 11,410,734 11,362,729 11,382,533 11,333,189
=================== =================== =================== ====================
Net income (loss) per common share
assuming dilution $ (0.19) $ 0.04 $ (0.18) $ 0.12
=================== =================== =================== ====================
Weighted average shares outstanding
and dilutive shares 11,410,734 11,565,468 11,382,533 11,535,928
=================== =================== =================== ====================
</TABLE>
