Slide 1: Conference Call & Webcast Discussion of First Quarter 2007 Operating Results
3D Systems Corporation Conference Call & Webcast Discussion of First Quarter 2007 Operating Results May 31, 2007 NASDAQ: TDSC www.3dsystems.com
Slide 2: Welcome Webcast Viewers
Welcome Webcast Viewers If you wish to ask questions at the end of the conference call, you should register as "Interactive Teleconference." If you did not register as "Interactive" and wish to participate, please follow the steps below: Check the icon marked "Phone Connection" on the toolbar at the
Slide 3: Participants
Participants Chanda Hughes Coordinator, Investor Relations Abe N. Reichental President & Chief Executive Officer Damon Gregoire Vice President & Chief Financial Officer Robert M. Grace, Jr. Vice President, General Counsel & Secretary
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 Results Leader Innovator Partner Buflder 5 SYSTEMS:
Slide 6: First Quarter 2007 Operating Results
First Quarter 2007 Operating Results ($ Millions except per share amounts) NM=not meaningful
Slide 7: First Quarter 2007 Gross Profit Margin
First Quarter 2007 Gross Profit Margin ($ Millions) Gross profit margin increase due primarily to: Higher volumes of materials and new systems Partially offset by lower training and installation services revenue
Slide 8: First Quarter Revenue by Category
First Quarter Revenue by Category ($ Millions) $33.6 12.3% 33.0% 54.7% $36.9 12.6% 43.6% 43.8% $36.9 22.7% 41.6% 35.7% 36.8% 35.3% $33.6 27.9% Asia Pacific North America Services Materials Systems & Other Europe
Slide 9: First Quarter 2007 Operating Expenses
First Quarter 2007 Operating Expenses ($ Millions)
Slide 10: Key Operating Results Trends
Key Operating Results Trends ($ Millions) Operating & Net Loss Revenue (Right axis) (Left axis) Net Loss to Common Operating Loss Revenue 1st QTR 06 2nd QTR 06 3rd QTR 06 4th QTR 06 1st QTR 07
Slide 11: 2007 Key Operating Results Trends
2007 Key Operating Results Trends ($ Millions) 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 Revenue 34 27 31 43 37 Gross Profit 14 6 11 16 15.9 Operating Expenses 15 16 19 21 18 Net loss -2 -12 -11 -6 -3.1 (In millions)
Slide 12: Cash and Working Capital
Cash and Working Capital Q1 2007 $7 million of unrestricted cash Q1 2007 $8.2 million of borrowings on bank credit facility Due at the beginning of July 2007 Q1 2007 $30.8 million of inventory Q2 2006 Q3 2006 Q4 2006 Q1 2007 DSO 103 81 74 68 103 81 74 68
Slide 13: Business Update
Business Update Leader Innovator Partner Buflder 13° SySTEMS
Slide 14: State of Business
State of Business We believe that the significant business setbacks and disruptions that we experienced in the course of implementing our strategic initiatives in 2006 are now largely behind us We are gratified with the progress we are making In the first quarter of 2007, we continued to incur abnor
Slide 15: 2007 First Quarter Product Announcements
2007 First Quarter Product Announcements Announced successful development of the revolutionary compact, fast and affordable V-Flash(tm) Desktop Modeler Announced partnership with Tangible Express - first fractional ownership program in the industry Announced V-Flash(tm) HA Manufacturing System, firs
Slide 16: Expect Business Fundamentals to Improve
Expect Business Fundamentals to Improve Average Selling Prices expected to be maintained Cost Of Goods Sold impacted by friction costs, expected to continue to improve Special Operating Expenses reflect relocation, ERP, restatement, SOX Gross Profit expected to return to and exceed historical levels
Slide 17: Improving Revenue Mix and Profitability
Improving Revenue Mix and Profitability Leveraging Volume, Productivity, Mix, Retention and Fixed Costs to Maximize Profitability Materials: Highest margin in the mix: double-digit growth Service: Lowest margin in the mix: flattening Systems: New systems growing at attractive margins Rapid Manufactu
Slide 18: In Conclusion
In Conclusion Leading industry position through technology Dedicated business units focused on customer success Clear priorities for sustained, profitable growth Powerful brands deep customer relations diverse base Vertical success Global presence and reach Differentiated product portfolio Four pate
Slide 19: Question & Answer Session
Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions. All questions must be directed through the teleconference portion of this call. Questions via the web will not be accepted. Question & Answer Session
Slide 20: Thank You for Participating
Thank You for Participating A recording of this Webcast will be available two hours after completion of the call. To access the recording, dial 1-800-642-1687 (or 706-645-9291 from outside the United States) and enter the conference call ID number. A replay of this Webcast will be available after th
Slide 21: First Quarter 2007 Product Announcements: V-Flash Desktop Modeler
First Quarter 2007 Product Announcements Announced successful development of the revolutionary compact, fast and affordable V-Flash(tm) Desktop Modeler Based on a Disruptive Technology Platform - - Film Transfer Imaging (FTI) - 4th technology platform for 3D Systems SLA(r)-like Part Quality User-Fri
Slide 22: Partnership with World-Class Leaders - Tangible Express
Partnership with World-Class Leaders - Tangible Express First fractional ownership program in the industry Delivers 3D Systems' technology and quality to more users Manufacturing capacity without the associated operating costs Owners pay for what they need when they need it Fractional fleet of 13 SL
Slide 23: Why Settle For a Mimic? Own a Slice of The Real Deal
Why Settle For a Mimic? Own a Slice of The Real Deal... Pro Parts at a Fraction! The Real Deal... Pro Parts at a Fraction! The Real Deal... Pro Parts at a Fraction! FDM from Stratasys Ownership Slice from TE PolyJet from Objet Stereolithography from 3D
Slide 24: In partnership with World-Class Leaders: Hearing Aid Manufacturing System
In partnership with World-Class Leaders: Announced first economical, high-speed desktop manufacturing system for hearing aids Based on 3D Systems' new, disruptive Film Transfer Imaging (FTI) technology Builds high-quality hearing aid shells within hours - improved efficiency Will provide multiple-ma
Slide 25: Accura Plastic and InVision XT 3-D Modeler
Introduced Accura(r) 55 Plastic, a tough and versatile Stereolithography Material that simulates the look and feel of molded ABS Announced the introduction of the InVision(r) XT 3-D Modeler Fast and productive High-definition, functional and durable models Material Color variety Compact First Quarte