3d Systems Corporation · NYSE:DDD
3d Systems — Q1 2010 Earnings Presentation
23 slides from 3d Systems's earnings presentation, May 5, 2010
Slide 1: Conference Call and Webcast: First Quarter 2010 Results
Conference Investor Call and Webcast Presentation Nasdaq:TDSC www.3dsystems.com Discussion of First Quarter 2010 Results May 5, 2010 NASDAQ: TDSC - www.3dsystems.com
Slide 2: Participants
Participants Amanda Molbert Amanda Molbert Coordinator, Investor Coordinator, Relations Investor Relations Abe Reichental Abe Reichental President & Chief Executive Officer President & Chef Executive Officer Damon Gregoire Vice Damon President & Chief Financial Officer Gregoire Vice Pres
Slide 3: Welcome Webcast Viewers
Welcome Webcast Viewers To listen to the conference via phone and to ask questions during our Q&A session, please dial: 1-888-336-3485 in the United States 1-706-634-0653 from outside the United States Participant Code: 70048832 3 Copyright 3D Systems Corporation All Rights Reserved
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, un
Slide 5: Operating Results
Operating Investor Results Presentation Nasdaq:TDSC www.3dsystems.com Abe Reichental, President & CEO Copyright 3D Systems Copyright Corporation 3D Systems All Corporation Rights Reserved All Rights Reserved
Slide 6: First Quarter 2010 Overview
First Quarter 2010 Overview Improved business conditions resulted in revenue growth from all revenue buckets. We expanded gross margin and lowered operating expenses driven in part by our ongoing operational and quality improvements. We continued to expand our 3Dproparts™ service organically a
Slide 7: Financial Review
Financial Investor Review Presentation Nasdaq:TDSC www.3dsystems.com Damon Gregoire, Vice President & CFO Copyright 3D Systems Copyright Corporation 3D Systems All Corporation Rights Reserved All Rights Reserved
Slide 8: First Quarter 2010 Operating Results
First Quarter 2010 Operating Results ($ Millions except per share amounts) First Quarter % Change Favorable Operating Results 2010 2009 (Unfavorable) Revenue $ 31.6 $ 24.0 32% Gross Profit $ 14.3 $ 10.5 37% % of Revenue 45% 44% Operating Expenses $ 11.7 $ 12.1 3% % of Revenue 37% 50% Net Income (Los
Slide 9: Factors Shaping First Quarter Results
Factors Shaping First Quarter Results ($ Millions) Q1‐10 vs. Q1‐09 Revenue Growth 2010 2009 Growth % Growth Systems $8.8 $4.9 $3.9 81% Materials 13.6 10.6 3.0 28% Services 9.2 8.5 0.7 8% Total 31.6 24.0 7.6 32% Systems revenue in Q1 2010 consisted of: 25% large-frame systems (9% in Q1 2009) 21
Slide 10: Healthcare Solutions First Quarter Revenue
Healthcare Solutions First Quarter Revenue Healthcare Solutions represented 12% of total revenue. Recurring revenue from materials and services amounted to 68% of total Healthcare Solutions revenue. Healthcare Solutions revenue consists of sales of systems, materials and services into: Heari
Slide 11: Factors Shaping First Quarter Results
Factors Shaping First Quarter Results ($ Millions) Q1‐09 Q2‐09 Q3‐09 Q4‐09 Q1‐10 Total Operating Expenses $ 12.1 $ 11.7 $ 11.2 $ 11.7 $ 11.7 Gross Profit Margin 44% 44% 45% 44% 45% Cash $ 23.4 $ 24.0 $ 24.0 $ 24.9 $ 26.6 Inventory $ 19.9 $ 19.1 $ 20.3 $ 18.4 $ 20.3 Gross margin and operating expen
Slide 12: First Quarter Revenue Composition by Category and Region
First Quarter Revenue Composition by Category and Region ($ Millions) 35 $31.6 $31.6 14% Asia 30 Services Pacific 29% $24.0 $24.0 25 13% 36% 41% 20 Europe 43% Materials 42% 15 44% 10 North 45% America 28% Systems 45% 5 & Other 20% 0 2010 2009 2010 2009 Recurring revenue represents nearly three-quart
Slide 13: First Quarter 2010 Gross Profit and Margin
First Quarter 2010 Gross Profit and Margin First Quarter 2010 First Quarter 2009 Yr‐Yr % $ Millions % Revenue $ Millions % Revenue $ Margin Systems $ 3.1 36% $ 0.9 18% 268% 105% Materials $ 8.3 61% $ 6.7 63% 23% (4%) Services $ 2.9 32% $ 2.9 34% 0% (8%) TOTAL $ 14.3 45% $10.5 44% 37% 4% Systems gros
Slide 14: First Quarter Working Capital Update
First Quarter Working Capital Update 160 140 132 125 122 121 120 105 102 101 100 100 83 80 73 70 68 66 63 63 60 63 62 60 60 64 40 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Days Sales Outstanding Days Inventory On Hand 14 Copyright 3D Systems Corporation All Righ
Slide 15: First Quarter Working Capital Update
First Quarter Working Capital Update ($ Thousands) Inventory Balance at 12/31/09 $ 18,378 Q1 2010 Increase 1,900 Balance at 3/31/10 $ 20,278 Cash Balance at 12/31/09 $ 24,913 Q1 2010 Increase 1,723 Balance at 3/31/10 $ 26,636 15 Copyright 3D Systems Corporation All Rights Reserved
Slide 16: Progress & Outlook
Progress Investor & Outlook Presentation Nasdaq:TDSC www.3dsystems.com Abe Reichental, President & CEO Copyright 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com
Slide 17: Recent Developments
Recent Developments We launched the ProJet™ MP 3000 dental production system. We continued to expand our 3Dproparts™ services by: Acquiring Moeller Design (Q1 2010) Acquiring Design Prototyping Technologies (Q2 2010) 17 Copyright 3D Systems Corporation All Rights Reserved
Slide 18: Growth Drivers
Growth Drivers We entered the second quarter of 2010 with a strong sales funnel. We expect sales of our expanding lineup of 3-D printers to continue to grow, helped by our V-Flash® and new ProJet™ printers. We are pleased with the progress we are making on 3Dproparts™ and expect to continue to
Slide 19: Revenue Outlook
Revenue Outlook We are optimistic about our ability to continue to make progress even though economic conditions remain uncertain. We expect continued revenue growth during 2010 given our strengthened portfolio of products and services. We expect 3Dproparts™ revenue to reach 15-20% of our ongo
Slide 20: Gross Profit and Operating Expenses Outlook
Gross Profit and Operating Expenses Outlook We expect our gross profit margin to remain stable despite: Potential adverse systems mix in favor of lower margin printers and integration period of acquired businesses and Continued negative 2-4 percentage point drag from V-Flash® through the first
Slide 21: Bottom Line
Bottom Line Our sales funnel remains robust. Our Parts, Printers and Production Systems are expected to generate increased OEM demand. Our business model is built around significant, recurring revenue components that generate improved contribution margins. We remain committed to our long-term
Slide 22: Q&A Session
Q&A Investor Session Presentation Nasdaq:TDSC www.3dsystems.com 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: • Ph
Slide 23: Thank You for Participating
Thank You for Investor Participating Presentation Nasdaq:TDSC www.3dsystems.com Replay available at www.3dsystems.com/ir Copyright 3D Systems Corporation All Rights Reserved