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 20, 1999
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 20,
1999, 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.
April 23, 1999 3D SYSTEMS CORPORATION
By: /S/ FRANK J. SPINA
-------------------------------
Frank J. Spina
Vice President &
Chief Financial Officer
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EXHIBIT INDEX
Exhibits Page Number
- -------- -----------
99.1 Press Release dated April 20, 1999. 5
[LETTERHEAD OF 3D SYSTEMS CORPORATION]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Frank Spina
Vice President & Chief Financial Officer
(805) 295-5600, Ext. 2216
[email protected]
Carol Cerrato
Investor Relations
(805) 295-5600, Ext. 2252
[email protected]
3D SYSTEMS ANNOUNCES RESULTS
FOR THE FIRST QUARTER 1999
VALENCIA, Calif., April 20, 1999 - 3D Systems Corporation (Nasdaq NMS:
TDSC) today reported that first quarter 1999 sales totaled $22.7 million,
compared with $22.8 million in the corresponding period a year ago.
For the three months ended April 2, 1999, the company posted a net loss
of $2.3 million, equal to $0.20 a share, which compares with net income of
$354,000 or $0.03 cents a share in the first quarter of 1998.
Arthur B. Sims, chairman and chief executive officer, expressed
"considerable disappointment" in the company's revenue growth, which he said was
negatively impacted by sluggish demand, a sales mix that skewed toward lower
margin products, and a decline in average selling prices.
According to Sims, these factors, coupled with significantly higher
operating expenses, adversely affected first quarter earnings.
"The first quarter witnessed the company's introduction of the
state-of-the-art SLA 7000 industrial system, the ThermoJet solid object printer,
as well as new software and materials -- exciting elements of 3D's strategic
course," he said.
"We supported these new product initiatives through extensive commitment
to launch activities and trade show participation. This resulted in about $1.5
million of additional sales and
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marketing expense in anticipation of future revenues. We expect that sales and
marketing expenditures will return to historic lower levels in the second
quarter."
With respect to the company's balance sheet, Sims indicated that 3D
Systems made a cash payment of $2.0 million during the first quarter for the
acquisition of intellectual property rights and pre-paid royalties, both related
to solid object printing.
In the first quarter, the company shipped 60 units versus 49 systems
delivered in the like-period last year. Product mix in the recently completed
quarter trended to lower-price, lower-margin SLA systems, Actuas and ThermoJet
solid object printers.
ABOUT 3D SYSTEMS
3D Systems provides solid imaging products and services that allow users
to move quickly from three-dimensional designs to finished parts, at a
significantly lower cost and higher quality than more traditional methods. The
company's systems, through patented stereolithography and 3D printing
technologies, fabricate solid objects from digital input. This process
substantially reduces the time and cost of product development, resulting in
shorter time to manufacturing and time to market. Based in Valencia, Calif., 3D
Systems was founded in 1986, and is recognized as the world leader in solid
imaging.
To obtain additional information about 3D Systems products and services,
call (888) 337-9786 (toll-free) and request extension 706, or visit the company
web site at www.3dsystems.com. For investor information, please call the 3D
Systems shareholder communications service at (800) 757-1799.
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, industrywide domestic
and international economic conditions, and other risks detailed in the company's
Form 10-K for the year ended December 31, 1998, Form 10-Q for 1999's first
quarter and other SEC filings.
# # #
3D SYSTEMS AND SLA AND ARE TRADEMARKS OF 3D SYSTEMS
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3D SYSTEMS CORPORATION
Consolidated Balance Sheets
<TABLE>
<CAPTION>
ASSETS December 31, April 2,
1998 1999
------------ ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents .......................................... $ 15,911,793 $ 9,575,855
Short-term investments ............................................. 3,484,641 3,982,239
Accounts receivable, less allowances for
doubtful accounts of $944,144 (1998)
and $1,170,748 (1999) ............................................. 24,486,730 24,473,665
Current portion of lease receivables ............................... 2,069,126 1,965,999
Inventories ........................................................ 10,829,346 11,558,428
Deferred tax assets ................................................ 2,063,163 2,063,163
Prepaid expenses and other current assets .......................... 1,916,149 2,638,349
------------ ------------
Total current assets .......................................... 60,760,948 56,257,698
Property and equipment, net .......................................... 16,327,078 15,768,526
Licenses and patent costs, net ....................................... 5,120,672 5,006,241
Deferred tax assets .................................................. 5,069,796 5,069,796
Lease receivables, less current portion .............................. 5,801,788 5,380,066
Other assets ......................................................... 2,022,316 3,430,557
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$ 95,102,598 $ 90,912,884
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................................... $ 4,849,905 $ 5,047,960
Accrued liabilities ................................................ 8,161,684 6,782,623
Current portion of long-term debt .................................. 100,000 105,000
Customer deposits .................................................. 330,162 684,626
Deferred revenues .................................................. 9,013,559 8,630,457
------------ ------------
Total current liabilities ..................................... 22,455,310 21,250,666
Other liabilities .................................................... 1,485,378 1,980,525
Long-term debt, less current portion ................................. 4,605,000 4,550,000
------------ ------------
28,545,688 27,781,191
------------ ------------
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 11,614,317 and outstanding 11,389,317 (1998)
and issued 11,630,575 and outstanding 11,405,575 (1999) .......... 11,614 11,630
Capital in excess of par value ..................................... 74,834,225 74,917,160
Notes receivable from officers ..................................... (360,000) (360,000)
Accumulated deficit ................................................ (6,765,447) (9,045,328)
Accumulated other comprehensive income (loss) ...................... 376,459 (851,828)
Treasury stock, at cost, 225,000 shares (1998)
and 225,000 shares (1999) ........................................ (1,539,941) (1,539,941)
------------ ------------
Total stockholders' equity ................................... 66,556,910 63,131,693
------------ ------------
$ 95,102,598 $ 90,912,884
============ ============
</TABLE>
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3D SYSTEMS CORPORATION
Consolidated Statements of Operations
For the Three Month Periods Ended
March 27, 1998 and April 2, 1999
<TABLE>
<CAPTION>
For the Three Month Periods Ended
---------------------------------
March 27, 1998 April 2, 1999
-------------- --------------
<S> <C> <C>
Sales:
Products ................................. $ 14,527,349 $ 15,278,036
Services ................................. 8,309,008 7,405,656
------------ ------------
Total sales ........................... 22,836,357 22,683,692
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Cost of sales:
Products ................................. 7,891,600 8,534,980
Services ................................. 5,555,809 4,955,030
------------ ------------
Total cost of sales ................... 13,447,409 13,490,010
------------ ------------
Gross profit ............................... 9,388,948 9,193,682
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Operating expenses:
Selling, general and administrative ...... 6,638,532 10,230,069
Research and development ................. 2,311,634 2,442,924
------------ ------------
Total operating expenses .............. 8,950,166 12,672,993
------------ ------------
Income (loss) from operations .............. 438,782 (3,479,311)
Other income ............................... 178,885 177,358
Other expense .............................. (72,455) (50,808)
------------ ------------
Income (loss) before provision for
income taxes ............................ 545,212 (3,352,761)
Provision for income taxes (benefit) ....... 190,824 (1,072,880)
------------ ------------
Net income (loss) .......................... $ 354,388 $ (2,279,881)
============ ============
Weighted average shares outstanding ........ 11,287,023 11,389,847
============ ============
Net income (loss) per common share ......... $ 0.03 $ (0.20)
============ ============
Weighted average shares outstanding
and dilutive shares ..................... 11,536,702 11,389,847
============ ============
Net income (loss) per common share
assuming dilution ....................... $ 0.03 $ (0.20)
============ ============
</TABLE>
