Slide 1: Conference Call and Webcast: First Quarter 2010 Results
Conference Call and Webcast May 5, 2010 NASDAQ: TDSC - www.3dsystems.com Discussion of First Quarter 2010 Results
Slide 2: Presenters
q Amanda Molbert Coordinator, Investor Relations q Abe Reichental President & Chief Executive Officer q Damon Gregoire Vice President & Chief Financial Officer q Bob Grace Vice President & General Counsel
Slide 3: Welcome Webcast Viewers
q To listen to the conference via phone and to ask questions during our Q&A session, please dial: n 1-888-336-3485 in the United States n 1-706-634-0653 from outside the United States n Participant Code: 70048832 Welcome Webcast Viewers
Slide 4: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, u
Slide 5: Operating Results
Operating Results Copyright 3D Systems Corporation All Rights Reserved Abe Reichental, President & CEO
Slide 6: First Quarter 2010 Overview
Our improved performance resulted in $2.0 million net income. q Improved business conditions resulted in revenue growth from all revenue buckets. q We expanded gross margin and lowered operating expenses driven in part by our ongoing operational and quality improvements. q We continued to expand our
Slide 7: Financial Review
Financial Review Copyright 3D Systems Corporation All Rights Reserved Damon Gregoire, Vice President & CFO
Slide 8: EPS impact of V-Flash ramp up and litigation costs
EPS included the negative impact of a 1 cent per share planned V-Flash ® ramp up and a 4 cents per share from litigation costs. EPS included the negative impact of a 1 cent per share planned V-Flash ® ramp up and a 4 cents per share from litigation costs.
Slide 9: Systems and services revenue
q Systems revenue in Q1 2010 consisted of: q 25% large-frame systems (9% in Q1 2009) q 21% mid-frame systems (37% in Q1 2009) q 54% 3-D printers (54% in Q1 2009) q Services revenue includes: q Maintenance and warranty contract revenue q Sales of system upgrades q Installation of and training on mach
Slide 10: Healthcare Solutions First Quarter Revenue
Recurring materials and services revenue amounted to 68% of total Healthcare Solutions sales. q Healthcare Solutions represented 12% of total revenue. q Recurring revenue from materials and services amounted to 68% of total Healthcare Solutions revenue. q Healthcare Solutions revenue consists of sal
Slide 11: Gross margin, operating expenses and cash position
q Gross margin and operating expenses both improved compared to the first quarter of 2009. q Net income of $2.0 million included $1.8 million of non-cash expenses. q Cash position improved from the previous quarter to $26.6 million, even after funding our acquisition of Moeller Design. q Inventory i
Slide 12: First Quarter Revenue Composition by Category and Region
Recurring revenue represents nearly three-quarters of total revenue. 28% 43% 29% 20% 44% 36% 45% 41% 14% 45% 42% 13% First Quarter Revenue Composition by Category and Region Systems & Other Materials Services North America Europe Asia Pacific $31.6 $31.6 $24.0 $24.0 ($ Millions)
Slide 13: Systems gross profit margin drivers
Systems gross profit margin benefited from: q The continued favorable impact of operational and cost improvements and q Better overhead absorption over a larger revenue base.
Slide 14: First Quarter Working Capital Update: Days Inventory On Hand
First Quarter Working Capital Update Days Inventory On Hand Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Slide 15: First Quarter Working Capital Update
First Quarter Working Capital Update Balance at 12/31/09 $ 18,378 Q1 2010 Increase 1,900 Balance at 3/31/10 $ 20,278 Balance at 12/31/09 § 24,913 Q1 2010 Increase 1,723 Balance at 3/31/10 $ 26,636 Create) Confidence
Slide 16: Progress & Outlook
Progress & Outlook Copyright 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com Abe Reichental, President & CEO
Slide 17: ProJet MP 3000 launch and 3Dproparts acquisitions
q We launched the ProJet™ MP 3000 dental production system. q We continued to expand our 3Dproparts™ services by: q Acquiring Moeller Design (Q1 2010) q Acquiring Design Prototyping Technologies (Q2 2010)
Slide 18: Growth Drivers
q We entered the second quarter of 2010 with a strong sales funnel. q We expect sales of our expanding lineup of 3-D printers to continue to grow, helped by our V-Flash ® and new ProJet™ printers. q We are pleased with the progress we are making on 3Dproparts™ and expect to continue to grow this act
Slide 19: Revenue Outlook
We expect to benefit competitively from our new products and expanded services portfolio and stronger financial position. q We are optimistic about our ability to continue to make progress even though economic conditions remain uncertain. q We expect continued revenue growth during 2010 given our st
Slide 20: Gross Profit and Operating Expenses Outlook
We believe that we can further enhance our operational effectiveness and optimize our operating costs. q We expect our gross profit margin to remain stable despite: q Potential adverse systems mix in favor of lower margin printers and integration period of acquired businesses and q Continued negativ
Slide 21: Bottom Line
q Our sales funnel remains robust. q Our Parts, Printers and Production Systems are expected to generate increased OEM demand. q Our business model is built around significant, recurring revenue components that generate improved contribution margins. We remain committed to our long-term growth objec
Slide 22: Q&A Session
Q&A Session Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions. Please direct all questions through the teleconference portion of this call. To ask questions: • Phone: 1-888-336-3485 • International: 1-706-634-0653
Slide 23: Thank You for Participating
Thank You for Participating Replay available at www.3dsystems.com/ir