Date: Thu Jul 18 2002 - 18:06:50 EEST
3D Systems Reports Second Quarter and First Half Results
July 17, 2002 08:11:00 AM ET
VALENCIA, Calif.--(BUSINESS WIRE)--July 17, 2002--3D Systems Corp. TDSC today announced second quarter 2002 revenue of $28.8 million and a net loss of $6.0 million or $0.46 per fully diluted share compared with year ago revenue of $25.0 million and a net loss of $0.3 million or $0.03 per fully diluted share for 3D Systems prior to the acquisition of DTM Corporation. The loss in Q2 2002 includes $1.9 million in severance and other restructuring costs, $1.0 million in legal costs relating to the now completed Department of Justice and DTM acquisition matter and other legal matters, and $1.0 million in resin conversion costs.
Revenue and net income for the first six months of 2002 totaled $56.0 million and $2.5 million or $0.18 per fully diluted share compared with revenue of $52.9 million and net income of $1.0 million or $0.08 per fully diluted share recorded by 3D Systems prior to the acquisition of DTM for the first half of 2001. Included in the first half results is a $18.5 million pretax benefit associated with the Vantico arbitration settlement.
Stated Brian K. Service, "Companies worldwide appear to remain hesitant to commit to purchasing major capital equipment, especially for use in traditional rapid prototyping applications. The situation appears to be somewhat better in the newer application areas of Advanced Digital Manufacturing(SM) which accounted for 35% of revenue in the quarter, and the interest level in developing ADM applications is high. Recurring revenues increased to 57% compared to 55% in the prior year period, despite reduced resin revenue at 53% of prior year.
"Our resin materials conversion program has been proceeding well ahead of plan with margins also remaining above expectation. Currently, we estimate we are the Number 1 supplier worldwide on a volume basis. We expect to introduce a number of new materials in 2002 and across all platforms," continued Service.
"The company's transition, since completing the acquisitions of DTM and RPC Ltd., the Vantico separation and now the agreement with the Department of Justice to license our stereolithography technology in the U.S., continues in a very difficult business environment. Business appears to have stabilized, although at a lower level than expected. Accordingly, we have decided to further consolidate and streamline operations, both here and in Europe, in line with current revenue expectations. The former DTM facility in Austin, Texas will be closed and European operations will be reorganized. Research and development operations will be focused at Grand Junction, Colorado and Valencia, California. We expect to announce further measures to reduce costs in the next few days," Service said.
"Overall, we believe we have a solid business and a good opportunity for long-term growth in ADM, but we must conserve our resources and control our costs to operate more efficiently and effectively until the business environment improves," he added.
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