Subject: Second Quarter Earnings Press Release
Please see the following press release that went out this afternoon
(7/20/99). The complete release with accounting tables can be viewed on
our website at the following URL:
FOR IMMEDIATE RELEASE Contact:
July 20, 1999 Geoff Kreiger +1.512.339.2922
? CORPORATION REPORTS SECOND QUARTER 1999 EARNINGS
Sequential earnings gain beats analysts? estimate; record second quarter
and first six month revenues
Austin, Texas: DTM Corporation (Nasdaq: DTMC) today announced net income
for the second quarter of 1999 was $295,000, or $0.04 per share on a fully
diluted basis. This is a substantial improvement from the second quarter of
1998 loss of $2,807,000, or $0.45 per share.
Net income for the first six months of 1999 was $569,000, or $0.09 per
share on a fully diluted basis. This is also a substantial improvement
from the first six months of 1998 loss of $4,141,000, or $0.66 per share.
Revenues were $15.6 million in the first six months of 1999, a 17.0%
increase from the $13.3 million in the first six months of 1998.
John Murchison, III, DTM?s President and CEO, stated ? We are very pleased
with our second quarter results. The net profit is a continuation of the
improvement in our operating trends that started in the fourth quarter of
1998. The second quarter 1999 is our third consecutive profitable quarter.
?Our revenues for the first six months of 1999 were 17% ahead of the first
six months of 1998 and are a record for any six-month period in the history
of the company. Gross margins were 53% in the second quarter compared to
32% in the second quarter of 1998 and were achieved in spite of a strong
dollar relative to European currencies and significant competitive
pressures in Europe. This was the third consecutive quarter where our
overall gross margins exceeded 50%. The improvement in our gross margins
over the past three-quarters is a result of continuing market acceptance of
new products launched by us over the past eighteen months and the lower
cost Sinterstation 2500plus introduced in September 1998. All three of our
major geographic markets ? North America, Europe and Pacific Rim ?
contributed to the Company performance in the second quarter.
?During the second quarter we continued to make progress in broadening the
market for our products. In March of 1999, we introduced CastForm, a
material that opens a new application for DTM by allowing our customers to
create complex patterns for investment casting applications by foundries.
We successfully qualified CastForm for investment casting applications at
45 foundries In North America and Europe during the second quarter.
?We are excited that our efforts have yielded significant improvements in
operating results for the first six months of this year. We believe our
performance in the first half of 1999 is evidence that our new and improved
products are allowing us to establish favorable market momentum.?*
Geoffrey W. Kreiger, DTM?s Chief Financial Officer, stated ?Our working
capital position has improved by approximately $3.3 million over the past
four quarters. During this latest quarter, the $909,000 liability to its
shareholder was satisfied. At June 30, 1999, DTM was debt free and had
available a new credit facility of $2.5 million from Silicon Valley Bank,
secured solely by the corporate assets of DTM. These were important
milestones in DTM?s progress as an independent company.?*
About DTM Corporation
DTM Corporation develops manufactures and markets the Sinterstation family
of rapid prototyping products for application in the rapid manufacturing
marketplace. The Sinterstation systems and materials are based on
proprietary and patented SLS selective laser sintering technology. The
Company?s products are used to accelerate the design, development and
market introduction of products in an expanding range of industries.
Forward Looking Statement and Safe Harbor Disclaimer
* Certain of the statements are forward-looking statements that involve
risks and uncertainties that could cause actual results to differ
materially. Such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially and adversely from
those set forth in the forward-looking statements, including, without
limitation: the Company?s stock price and public float could cause its
stock to be delisted from the NASDAQ National Market, further reducing
liquidity; additional capital sufficient to finance the business may not be
available or if available might cause significant dilution; quarterly
fluctuations in operating results and the difficulty in predicting results
of operations may adversely affect stock prices; seasonality of customer
buying habits, principally a slower third quarter, may adversely affect
stock prices; reduced margins and loss of market share may occur as a
result of increasing competition; the Company?s dependence on a single
product that is priced at the high end of the range for today?s rapid
prototyping products has caused it to be adversely affected in a soft
market; DTM has significant international operations with the inherent
exposures; potential liabilities resulting from undetected errors or
defects in Company products; and the Company?s stock price could be
volatile, regardless of DTM?s financial performance.
The Company cautions that the foregoing list of important factors is not
exclusive. The Company does not undertake to update any written or oral
forward-looking statement that may be made from time to time by or on
behalf of the Company.
Copyright 1999, DTMTM Corporation, all rights reserved.
DTM, SLS, Sinterstation, RapidSteel, DuraForm, CastForm, and SandForm are
trademarks and registered trademarks of DTM.
For more information, contact:
1611 Headway Circle, Building 2, Austin, TX, USA 78754
Phone +1.512.339.2922; Fax +1.512.339.0634
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