Slide 1: Conference Call and Webcast
Conference Call and Webcast NASDAQ: TDSC www.3dsystems.com February 25, 2010
Slide 2: Participants
Participants 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
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 Confirmation Code: 52985568
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 Abe Reichental President & CEO
Slide 6: Fourth Quarter and Full Year 2009 Overview
We are pleased with our overall fourth quarter results, particularly given the continued challenging economic environment. Improved business conditions resulted in sequential revenue growth from all revenue buckets. Materials sales enjoyed continued sequential growth, a trend that resumed during the
Slide 7: Financial Results (CFO)
esident & CFO SoleCHL Confidence
Slide 8: Fourth Quarter 2009 Operating Results
Operating Results Fourth Quarter % Change 2009 2008 Favorable (Unfavorable) Revenue $36.4 $34.9 4% Gross Profit $16.1 $15.2 6% % of Revenue 44% 44% Operating Expenses $11.7 $13.9 16 % % of Revenue 32% 40% Net Income $3.6 $1.8 93% Depreciation & Amortization $1.5 $1.7 10% % of Revenue 4% 5% Fully Dil
Slide 9: Full Year 2009 Operating Results
Operating Results Full Year % Change 2009 2008 Favorable (Unfavorable) Revenue $112.8 $138.9 (19%) Gross Profit $49.7 $55.6 (11%) % of Revenue 44% 40% Operating Expenses $46.7 $61.1 24% % of Revenue 41% 44% Net Income (Loss) $1.1 ($6.2) NM Depreciation & Amortization $5.9 $6.7 12% % of Revenue 5% 5%
Slide 10: Factors Shaping Fourth Quarter 2009 Results
Q4-09 vs. Q3-09 Revenue Growth U.S. Europe AP Total Systems 52.7% 208.0% 8.9% 89.5% Materials 5.0% 23.6% 3.5% 13.1% Service 12.8% 10.2% 16.0% 12.1% Total 18.7% 56.2% 7.6% 31.7% q Sequential revenue growth from all revenue buckets. q Systems revenue increased by $6.1 million. q 3-D Printers revenue i
Slide 11: Factors Shaping Fourth Quarter 2009 Results
Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Total Operating Expenses $13.9 $12.1 $11.7 $11.2 $11.7 Gross Profit Margin 44% 44% 44% 45% 44% Cash $22.2 $23.4 $24.0 $24.0 $24.9 Inventory $21.0 $19.9 $19.1 $20.3 $18.4 q Gross profit margin and operating expenses both improved compared to the fourth quarter of 2008, w
Slide 12: Q4 2009 Revenue Mix By Category and Region
Q4 2009 Revenue Mix By Category and Region Europe $36.4 36% 20% $34.9 40% 13% $36.4 $34.9 24% 42% 41% 47% 44% 35% 34% 24%
Slide 13: Fourth Quarter & Full Year 2009 Gross Profit and Margin
Fourth Quarter & Full Year 2009 Gross Profit and Margin ($ Millions)
Slide 14: Fourth Quarter 2009 Operating Expenses
Fourth Quarter 2009 Operating Expenses Expect 2010 SG&A to be in the range of $36-40 million and R&D in the range of $10-12 million. ($ Millions)
Slide 15: Full Year 2009 Operating Expenses
Full Year 2009 Operating Expenses Expect 2010 SG&A to be in the range of $36-40 million and R&D in the range of $10-12 million. ($ Millions)
Slide 16: Working Capital Management
Working Capital Management Days Inventory On Hand Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
Slide 17: Working Capital Management
Working Capital Management ($000’s)
Slide 18: Progress Report
Progress Report Abe Reichental President & CEO
Slide 19: Recent Developments
Recent Developments q We continued our new product development activities and launched the ProJet™ 5000. q We further expanded our 3Dproparts™ services by: n Acquiring Acu-Cast Technologies n Acquiring AdvaTech n Launching 3Dproparts™ in Europe and n Acquiring Moeller Design
Slide 20: Growth Drivers
Growth Drivers q We entered the first quarter of 2010 with a strong sales funnel. q We remain pleased with the progress we are making on V-Flash ® sales. q We expect sales of our expanding lineup of 3-D printers to continue to grow, helped by our new ProJet™ 5000. q We are pleased with the progress
Slide 21: Revenue Outlook
Revenue Outlook q While economic conditions remain uncertain, we are optimistic about our ability to continue to make progress. q Given our strengthened portfolio of products and services, we expect continued revenue growth during 2010. q We intend to grow our 3Dproparts™ service both internally and
Slide 22: Gross Profit and Operating Expenses Outlook
Gross Profit and Operating Expenses Outlook q We expect our gross profit margin to remain stable despite q Potential adverse systems mix in favor of lower margin printers q Continued negative 2-4 percentage point drag from V-Flash ® through the first half of 2010. q We expect SG&A to be in the range
Slide 23: Universal Shelf Filing
Universal Shelf Filing q Yesterday we filed with the SEC a universal shelf registration statement providing for the offer and sale from time to time of up to $75 million of securities , including equity, debt and other securities as described in the registration statement. q We believe that filing a
Slide 24: Bottom Line
Bottom Line q Our first half 2010 sales funnel is robust. q Our three pillars of business: Parts , Printers and Production Systems are expected to drive demand for our products by OEMs. q Our business model is built around significant, recurring revenue components that generate improved contribution
Slide 25: Question and Answer Session
• Phone: 1-888-336-3485 • International: 1-706-634-0653 • Confirmation Code: 52985568 Question and Answer Session
Slide 26: Thank You For Participating
A replay of this webcast will be available approximately three hours after the call on the 3D Systems Investor Relations Web site, www.3dsystems.com/ir. Check out our new 3Dproparts™ website at www.3Dproparts.com Thank You For Participating