Thu Jul 31, 2014 eight:30am EDT* Reuters is not accountable for the content in this press release.-E...

1. 3D Systems Reports Second Quarter and Six Months 2014
Financial Results| Reuters
Thu Jul 31, 2014 eight:30am EDT
* Reuters is not accountable for the content in this press release.
-Expanding set up base and increased utilization fueled elements income development of thirty%
-Greater demand for style and design and manufacturing printers drove a 126% unit sales improve
for the class
-Elevated revenue guidance on strong business fundamentals and latest announcements
-Strengthening enterprise-broad synergies delivered $19 million of money from operations
ROCK HILL, S.C., July 31, 2014 (GLOBE NEWSWIRE) -- 3D Techniques Corporation (NYSE:DDD)
announced now that its 2nd quarter income grew $thirty.seven million, or 25%, from the prior yr to
$151.five million on sturdy demand for its style and manufacturing printers, resources and services,
resulting in 2nd quarter GAAP earnings of $.02 per share and non-GAAP earnings of $.16 per share.
Organic growth amounted to ten% as further orders-in-hand, which includes $23.1 million of printer
orders, a 29% sequential enhance above the March backlog for printers, expanded the company's
second quarter complete backlog to a record $31.9 million.
"We are pleased that unit product sales of our design and style and manufacturing printers greater
126% and assisted fuel a 30% enhance in products income. We think that the record purchase book
that we exited the quarter with reflects the vibrancy of our enterprise and our natural development
trajectory," said Avi Reichental, 3DS' President and Chief Executive Officer.
Second Quarter 2014 Revenue Highlights (compared to 2nd quarter 2013):
Design and style and manufacturing revenue increased 28% to $144.2 million on a 126% enhance in
units offered.
Developing installed base and elevated printer utilization fueled elements revenue development of
30%.
Expanding services menu contributed to a 38% enhance in solutions income.
Delayed new goods availability held customer revenue to $seven.four million, but didn't impede
greater buyer bookings of an more $seven.seven million.
Healthcare income enhanced 46% to $27.five million from expanding solutions and capabilities.
Gross revenue margin shouldered the transitional results of concentrated new product or service
launches as nicely as the absorption of legacy products obsolescence and manufacturing growth
fees. Collectively, these factors and altered mix compressed gross profit margin some 400 basis
factors from the prior year's quarter to 47.8%.

2. "When transitional forces temporarily pressured our gross profit margin, a in depth examination of
the unique drivers, confirms that the fundamentals of our company are intact and our gross profit
margins are poised to rebound and resume their growth trajectory," continued Reichental.
The firm correctly stored its operating bills flat, on a sequential basis, even with continued
investments in R&ampD, product sales, promoting and manufacturing capacity. The enterprise
generated $19. million of funds from operations for the duration of the 2nd quarter as returns on its
recent investments started to materialize and enterprise-broad integration synergies continued to
accrue. The firm ended the quarter with $570.three million funds on hand, inclusive of an equity
raise finished earlier in the quarter.
"As we advance our market leadership and scale in vital verticals via our enhanced investments, our
progress is ahead of schedule and our enterprise-broad synergies are previously creating significant
income from operations," continued Reichental.
For the six months 2014, revenue grew $76.4 million, or 34%, with growth distributed broadly
across all categories, to $299.three million, resulting in GAAP earnings per share of $.07 per share
and non-GAAP earnings per share of $.30 per share.
Current Organization Highlights
The organization acquired Healthcare Modeling, a top provider of FDA cleared, customized surgical
treatment setting up and patient particular health care units, to produce the most thorough 3D
printing health-related device abilities and boost its 3D printing digital thread.
The organization signed a definitive agreement to get Robtec, which will provide a strategic sales
and service platform and scalable gateway into Latin America.
The corporation extended its global reseller channel, including quite a few critical distributors which
includes ScanSource, Konica Minolta and Cannon Advertising and marketing Japan.
The company signed a definitive agreement to get Simbionix, the global leader in 3D virtual reality
surgical simulation, to extend its healthcare attain from the instruction area to the working space
with the addition of impressive synergistic technologies, deep experience and domain expertise.
3DS entered the 2nd half of this 12 months with a substantially greater order guide and favorable
growth indicators. The organization ordinarily realizes a greater portion of its annual revenue
through the second half of the 12 months, and expects the exact same in the remainder of 2014 as
the complete affect of its new products and companies and recent investments materializes.
Factoring in the expected net contribution right after closure of the Simbionix acquisition and
delayed closing of the Robtec acquisition that was by now included in its previous guidance,
management raised its 2014 revenue guidance. Management expects revenue to be in the range of
$700 million to $740 million and its GAAP earnings per share to be in the variety of $.44 to $.56 and
non-GAAP earnings per share to be in the array of $.73 to $.85.
"Constant with our historical performance, we expect to produce a greater portion of our income
throughout the 2nd half on rebounding margins. Record bookings for our layout and manufacturing
printers with each other with increasing orders for our client goods delivers us with self-confidence
in our capability to reach our 2014 guidance," concluded Reichental.
Q2 2014 Conference Get in touch with and Webcast

3. 3D Systems programs to hold a conference contact and simultaneous webcast to talk about its fiscal
benefits for the second quarter and first 6 months of 2014 on Thursday, July 31, 2014, at 9:00 a.m.
Eastern Time, and expects to file its Type 10-Q in advance of market open on the identical day.
Date: Thursday, July 31, 2014
Time: 9:00 a.m. Eastern Time
Listen by way of World-wide-web: www.3dsystems.com/investor
Participate through phone:
Inside the U.S.: 1-866-953-6860
Outside the U.S.: 1-617-399-3484
Participant code: 39529244
The recorded webcast will be available beginning somewhere around two hours just after the live
presentation at www.3dsystems.com/investor.
Forward-Wanting Statements
Sure statements produced in this release that are not statements of historical or present facts are
forward-on the lookout statements inside of the which means of the Personal Securities Litigation
Reform Act of 1995. Forward-seeking statements may well involve acknowledged and unknown
risks, uncertainties and other elements that may cause the actual benefits, performance or
achievements of the firm to be materially distinct from historical effects or from any future results or
projections expressed or implied by such forward-seeking statements. In addition to statements that
explicitly describe such hazards and uncertainties, readers are urged to take into consideration
statements in the conditional or future tenses or that include terms this kind of as "believes,"
"belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-
seeking. Forward-on the lookout statements might contain remarks as to the company's beliefs and
expectations as to long term events and trends affecting its company and are necessarily topic to
uncertainties, several of which are outside the management of the firm. The components described
beneath the headings "Forward-Wanting Statements," "Cautionary Statements and Danger Things,"
and "Threat Variables" in the company's periodic filings with the Securities and Exchange
Commission, as well as other variables, could induce actual final results to vary materially from
these reflected or predicted in forward-seeking statements.
Presentation of Details in This Press release
To facilitate a greater knowing of the influence that various strategic acquisitions had on its
monetary results, the business reported non-GAAP measures that modify net earnings and earnings
per share by excluding the effect of amortization of intangibles, non-cash curiosity expense,

4. acquisition and severance bills, litigation settlements, loss on conversion of notes and stock-based
mostly compensation expense. A reconciliation of GAAP to non-GAAP results is provided in the
accompanying schedule.
About 3D Techniques
3D Techniques is a major provider of 3D printing centric design and style-to-manufacturing answers
like 3D printers, print supplies and cloud sourced on-demand custom parts for specialists and people
alike in products together with plastics, metals, ceramics and edibles. The organization also offers
integrated 3D scan-based layout, freeform modeling and inspection resources and an integrated 3D
preparing and printing digital thread for personalized surgical procedure and patient specific
healthcare units. Its goods and services replace and complement standard techniques and lessen the
time and cost of developing new products by printing genuine components right from digital input.
These remedies are utilised to swiftly style and design, produce, talk, prototype or make functional
parts and assemblies, empowering prospects to manufacture the future.
Currently its thorough assortment of 3D printers is the industry's benchmark for manufacturing-
grade manufacturing in aerospace, automotive, patient particular health-related device and a wide
variety of consumer, electronic and style equipment.
A lot more data on the firm is offered at www.3DSystems.com.
Tables Adhere to
3D Techniques Corporation
Unaudited Consolidated Statements of Revenue and Thorough Earnings
Quarter and Six Months Ended June 30, 2014 and 2013
Quarter Ended June 30,
Six Months Ended June thirty,
(in 1000's, except per share amounts)
2014
2013

5. 2014
2013
Income:
Products
$ 99,984
$ 83,465
$ 201,178
$ 151,917
Services
51,528
37,322
98,092
70,949
Complete revenue
151,512
120,787
299,270
222,866
Cost of income:

6. Products
51,232
37,215
98,048
66,960
Services
27,882
twenty,989
53,352
39,846
Complete expense of sales
79,114
58,204
151,400
106,806
Gross profit
72,398
62,583
147,870
116,060
Working bills:

7. Selling, standard and administrative
50,322
36,189
99,042
65,643
Investigation and development
17,714
9,598
34,949
16,102
Total working expenses
68,036
45,787
133,991
81,745
Revenue from operations
four,362
16,796
13,879
34,315
Interest and other cost, net
one,476
two,662
two,524
twelve,729
Earnings in advance of income taxes

8. two,886
14,134
11,355
21,586
Provision for income taxes
694
four,791
4,253
six,360
Net income
two,192
9,343
7,102
15,226
Much less: net revenue attributable to noncontrolling curiosity
(67)
--
(100)
--
Net earnings attributable to 3D Techniques Corporation
$ 2,125
$ 9,343
$ 7,002
$ 15,226

9. Other in depth cash flow:
Pension changes, net of taxes
$ 26
$ (13)
$ 45
$ 16
Foreign currency translation attain (reduction) attributable to 3D Techniques Corporation
one,645
(two,460)
one,632
(five,721)
Total other thorough income (loss)
1,671
(2,473)
one,677
(five,705)
Extensive revenue
three,796
six,870

10. eight,679
9,521
Foreign currency translation (achieve) reduction attributable to noncontrolling interest
24
--
(2)
--
Comprehensive income attributable to 3D Methods Corporation
$ 3,820
$ 6,870
$ 8,677
$ 9,521
Net cash flow per share available to 3D Methods Corporation prevalent stockholders -- essential and
diluted
$ 0.02
$ 0.ten
$ 0.07
$ 0.16

11. 3D Techniques Corporation
Unaudited Consolidated Stability Sheets
June 30, 2014 and December 31, 2013
June 30,
December 31,
(in thousands, except par worth)
2014
2013
ASSETS
Present assets:
Money and funds equivalents
$ 570,262
$ 306,316
Accounts receivable, net of allowance for doubtful accounts of $11,154 (2014) and $8,133 (2013)
137,432
132,121

12. Inventories, net
90,204
75,148
Prepaid expenditures and other recent assets
14,105
seven,203
Present deferred earnings tax asset
8,105
six,067
Complete existing assets
820,108
526,855
Residence and equipment, net
59,671
45,208
Intangible assets, net
177,783
141,709
Goodwill
404,073
370,066
Extended term deferred cash flow tax asset
762
548
Other assets, net
13,973

13. 13,470
Complete assets
$ 1,476,370
$ 1,097,856
LIABILITIES AND EQUITY
Existing liabilities:
Recent portion of capitalized lease obligations
$ 194
$ 187
Accounts payable
65,440
51,729
Accrued and other liabilities
28,543
28,430
Client deposits
7,075
5,466
Deferred revenue
26,188
24,644
Total current liabilities

14. 127,440
110,456
Long term portion of capitalized lease obligations
7,181
seven,277
Convertible senior notes, net
eleven,585
eleven,416
Prolonged phrase deferred cash flow tax liability
21,819
19,714
Other liabilities
22,506
15,201
Total liabilities
190,531
164,064
Commitments and contingencies
Stockholders' equity:
Prevalent stock, $.001 par worth, authorized 220,000 shares issued 110,752 (2014) and 103,818
(2013)
111

15. 104
More paid-in capital
one,210,017
866,552
Treasury stock, at value: 645 shares (2014) and 600 shares (2013)
(316)
(286)
Accumulated earnings
67,489
60,487
Accumulated other thorough income
seven,466
5,789
Total 3D Programs Corporation stockholders' equity
one,284,767
932,646
Noncontrolling curiosity
one,072
1,146
Total stockholders' equity
1,285,839
933,792
Total liabilities and stockholders' equity
$ 1,476,370
$ 1,097,856

16. 3D Techniques Corporation
Unaudited Consolidated Statements of Income Flows
Quarter and Six Months Ended June thirty, 2014 and 2013
6 Months Ended June thirty,
(in 1000's)
2014
2013
Income flows from operating routines:
Net income
$ 7,102
$ 15,226
Adjustments to reconcile net income to net income presented by working activities:
Advantage of deferred revenue taxes
(13,249)
(four,481)
Depreciation and amortization
24,390
13,328

17. Non-cash curiosity on convertible notes
193
753
Provision for bad debts
three,141
601
Stock-primarily based compensation
15,638
5,346
Loss on the disposition of property and tools
296
3
Deferred curiosity revenue
--
(one,018)
Loss on conversion of convertible debt
--
9,253
Improvements in operating accounts:
Accounts receivable
(7,013)
(26,801)
Inventories
(15,711)

18. (9,900)
Prepaid costs and other existing assets
(six,630)
(258)
Accounts payable
twelve,983
253
Accrued and other liabilities
(3,029)
(2,744)
Buyer deposits
one,818
2,055
Deferred revenue
1,544
four,069
Other working assets and liabilities
(2,143)
(two,290)
Net funds offered by working activities
19,330
3,395
Cash flows from investing pursuits:
Purchases of home and equipment

19. (8,965)
(3,751)
Additions to license and patent costs
(382)
(one,313)
Proceeds from disposition of property and products
--
1,882
Money paid for acquisitions, net of funds assumed
(53,526)
(86,199)
Other investing pursuits
(300)
(1,500)
Net cash utilized in investing activities
(63,173)
(90,881)
Cash flows from financing pursuits:
Tax rewards from share-based payment arrangements
6,368
9,398
Proceeds from issuance of common stock
299,749
272,081

20. Proceeds from physical exercise of stock selections and limited stock, net
one,437
435
Funds disbursed in lieu of fractional shares associated to stock split
--
(177)
Repayment of capital lease obligations
(88)
(95)
Net income offered by financing activities
307,466
281,642
Effect of exchange rate alterations on cash
323
(760)
Net maximize in income and cash equivalents
263,946
193,396
Cash and cash equivalents at the beginning of the period
306,316
155,859
Cash and income equivalents at the end of the period
$ 570,262
$ 349,255
3D Programs Corporation

21. Schedule one
Earnings Per Share
Quarter and Six Months Ended June thirty, 2014 and 2013
Quarter Ended June thirty,
6 Months Ended June 30,
(in thousands, except per share amounts)
2014
2013
2014
2013
Numerator:
Net income attributable to 3D Systems Corporation - numerator for basic net earnings per share
$ two,125
$ 9,343
$ 7,002
$ 15,226

22. Include: Effect of dilutive securities
Curiosity cost on 5.50% convertible notes (immediately after-tax)
--
--
--
--
Numerator for diluted earnings per share
$ 2,125
$ 9,343
$ 7,002
$ 15,226
Denominator:
Weighted typical shares - denominator for simple net earnings per share

23. 106,407
96,248
104,985
94,047
Add: Impact of dilutive securities
5.50% convertible notes (right after-tax)
--
--
--
--
Denominator for diluted earnings per share
106,407
96,248
104,985
94,047
Earnings per share

24. Basic and diluted
$ 0.02
$ 0.ten
$ 0.07
$ 0.16
Interest cost excluded from diluted earnings per share calculation (a)
$ 206
$ 511
$ 362
$ 1,508
5.50% Convertible notes shares excluded from diluted earnings per share calculation (a)
876
1,925
876
two,852

25. (a) Average outstanding diluted earnings per share calculation excludes shares that may well be
issued upon conversion of the outstanding senior convertible notes since the impact of their
inclusion would have been anti-dilutive.
3D Systems Corporation
Schedule 2
Unaudited Reconciliation of GAAP Net Earnings to Non-GAAP Net Cash flow
Quarter and 6 Months Ended June thirty, 2014 and 2013
Quarter Ended June thirty,
Six Months Ended June thirty,
(in 1000's, except per share quantities)
2014
2013
2014
2013
GAAP net earnings attributable to 3D Methods Corporation
$ 2,125
$ 9,343
$ 7,002

26. $ 15,226
Cost of product sales changes:
Amortization of intangibles
70
66
135
125
Operating cost changes:
Amortization of intangibles
eight,141
5,018
17,269
eight,771
Acquisition and severance expenses
two,405
two,504
3,395
4,702

27. Non-funds stock-based compensation expense
8,363
3,125
15,639
5,346
Curiosity and other cost adjustments:
Non-funds curiosity expense
98
285
194
753
Reduction on convertible notes
--
3,538
--
9,253
Net reduction on litigation and tax settlements
--
--
--
two,000
Tax result

28. (4,579)
(4,928)
(eleven,952)
(eight,375)
Non-GAAP net income
$ 16,623
$ 18,951
$ 31,682
$ 37,801
Non-GAAP essential and diluted earnings per share
$ 0.sixteen
$ 0.twenty
$ 0.thirty
$ 0.forty
Contact: Investor Get hold of:
Stacey Witten
E-mail: Stacey.Witten@3dsystems.com
Media Make contact with:
Alyssa Reichental
Electronic mail: Press@3dsystems.com

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