3D Systems Reports Higher Revenue and Improved Operating Results for Second Quarter and First Six Months 2007
ROCK HILL, S.C.--(BUSINESS WIRE)--3D Systems Corporation (NASDAQ: TDSC), a leading provider of 3-D Modeling, Rapid Prototyping and Rapid Manufacturing solutions, announced today its operating results for the second quarter and first half of 2007. The company also filed its Quarterly Report on Form 10-Q for the second quarter of 2007 with the SEC today.
The company will hold a conference call and simultaneous webcast to discuss its operating results for the second quarter and first six months of 2007 tomorrow morning, August 7, 2007, at 8:00 a.m., Eastern Time. Additional information relating to that call and webcast is provided below.
The company reported record second quarter revenue. Revenue for the second quarter increased by 34% to $36.4 million compared to its depressed level of $27.1 million for the second quarter of 2006. Revenue for the first six months of 2007 was $73.4 million, a 21% increase over the $60.8 million of revenue reported for the first six months of 2006.
At June 30, 2007, the company’s backlog was approximately $1.5 million, a significant reduction from the $5.0 million of backlog recorded at December 31, 2006. The company believes that the June 30 level of backlog is more consistent with the normal operating trends in its business, which are generally not characterized by long lead times.
The company reported that its operating loss for the second quarter declined by more than 50% to $4.9 million from $10.3 million for the second quarter of 2006 and, for the first six months, declined by more than 40% to $7.0 million from $11.7 million in the 2006 period.
The company’s operating loss included $5.6 million of non-cash expenses in the first six months of 2007 and $5.0 million of non-cash expenses in the 2006 period, which included higher depreciation and amortization expense in the 2007 period arising from the company’s higher level of capital expenditures in 2006 for its relocation to Rock Hill, South Carolina, and its implementation of a new ERP system. The company expects that its depreciation and amortization expense for the full year 2007 will be in the range of $6.5 million to $7.5 million.
The company benefited from higher gross profit in the second quarter and first six months of 2007 and the absence of the restructuring costs that it incurred in 2006 for its relocation to Rock Hill, but operating expenses increased primarily due to increased spending on R&D and the remainder of the abnormal costs related to the restatement of its financial statements, its 2006 year-end audit and the continued implementation costs of its new ERP system.
“I am pleased with the company’s resumption of healthy revenue growth and the improvement in our operating results,” said Abe Reichental, 3D Systems’ president and chief executive officer. “I believe that we are continuing to experience gains from our extensive business transformation efforts.
“I am particularly pleased that for the second quarter revenue from systems increased by 70% and our engineered materials and composites revenue grew by 30%. I am also gratified that growth from new systems and materials more than offset the planned decline in revenue from our discontinuation of various legacy products and other less profitable activities,” continued Reichental. “With 21% revenue growth for the first six months of this year and a stronger underlying trend of 30% growth from both systems and materials sales for the same period, we believe that our overall results reflect the continued demand for our products and demonstrate that the strategic actions that we have taken to reshape our organization, transform our product portfolio and re-engineer our business model are taking effect.”