DTM(TM) Corporation Reports Record Third Quarter Earnings
18 October 1999
DTM(TM) Corporation Reports Record Third Quarter Earnings and Record Third Quarter Revenues
AUSTIN, Texas, Oct. 18 -- DTM Corporation
today announced net income for the third quarter of 1999 was $181,000, or
$0.03 per share. This is a substantial improvement from the third quarter of
1998 loss of $957,000, or $0.15 per share. Revenues were $7.6 million in the
third quarter of 1999, a 29.4% increase from the $5.9 million in the third
quarter of 1998.
Net income for the first nine months of 1999 was $750,000, or $0.11 per
share. This is also a substantial improvement from the first nine months of
1998 loss of $5.1 million, or $0.81 per share. Revenues were $23.2 million in
the first nine months of 1999, a 20.8% increase from the $19.2 million in the
first nine months of 1998.
John S Murchison, III, DTM's President and CEO, stated, "The third quarter
was a dramatic improvement for us over the third quarter of 1998. We posted
record third quarter revenues and profits. In spite of the fact that our
third quarter is usually soft, we experienced the strongest quarter in the
history of the company for machine orders and ended the quarter with a backlog
of $1.6 million. Demand for our products was solid in all of our markets and
it was exceptionally strong in Europe and the Pacific Rim. We believe our
third quarter performance indicates that we are developing substantial
momentum in the rapid prototyping market.
"The acceptance of our solutions for rapid prototyping applications is
extremely gratifying. We believe our SLS(R) selective laser sintering
technology is increasingly viewed as an essential product development and
manufacturing technology for an expanding base of companies around the world.
This has led to increased demand for our products over the last 12 months and
has resulted in an installed machine base now numbering almost 300 systems
worldwide.
"We are pleased that the plan we implemented in 1997 to place the company
on a solid footing for growth and profitability is generating the results we
have experienced for the last four quarters. Our recent performance gives us
reasons to be optimistic about the future.
"Our 18% top-line growth over the last four quarters and our earnings per
share of $0.17 for the same period convince us that DTM's current market
capitalization is not indicative of its intrinsic value."*
About DTM Corporation
DTM develops, manufactures, and markets advanced rapid prototyping and
manufacturing systems, including the new Sinterstation(R) 2500plus. All
Sinterstation systems utilize a process called SLS(R) selective laser
sintering and any of several plastic or metal SLS materials to create 3-D
objects from computerized designs.
Manufacturers all over the world, in a range of industries, use
Sinterstation systems to rapidly create three-dimensional prototypes, parts,
and tooling for their products.
Sinterstation users experience numerous benefits as they develop and
manufacture new products: time savings, lower development costs, more
efficient testing, the capability to prototype and test more design options,
and the competitive advantage associated with bringing new products to market
faster.
Unlike competing technologies and systems that are used primarily to
create visualization models, DTM's systems address industry's growing need for
rapidly produced, durable, testable prototypes and end-use parts.
Forward Looking Statement and Safe Harbor Disclaimer
* Certain of the statements are forward-looking statements that involve
risks and uncertainties that could cause actual results to differ materially.
Such statements are subject to certain risks and uncertainties that could
cause actual results to differ materially and adversely from those set forth
in the forward-looking statements, including, without limitation: the
Company's stock price and public float could cause its stock to be delisted
from the NASDAQ National Market and the Company has received such a notice to
comply by November 30, 1999 from NASDAQ, further reducing liquidity;
additional capital sufficient to finance the business may not be available or
if available might cause significant dilution; quarterly fluctuations in
operating results and the difficulty in predicting results of operations may
adversely affect stock prices; the Company's dependence on a single product
that is priced at the high end of the range for today's rapid prototyping
products has caused it to be adversely affected in a soft market; DTM has
significant international operations with the inherent exposures; potential
liabilities resulting from undetected errors or defects in Company products;
and the Company's stock price could be volatile, regardless of DTM's financial
performance.
The Company cautions that the foregoing list of important factors is not
exclusive. The Company does not undertake to update any written or oral
forward-looking statement that may be made from time to time by or on behalf
of the Company.
DTM(R), Sinterstation(R) and SLS(R) are registered trademarks of DTM
Corporation.
DTM Corporation
(In thousands, except share and per share amounts)
Third Quarter Statement of Operations (unaudited):
Three Months Ended
September 30,
1999 1998
Revenues:
Products $ 6,568 $ 5,063
Service and support 1,068 839
7,636 5,902
Cost of sales:
Products 3,090 2,779
Service and support 911 602
4,001 3,381
Gross Profit 3,635 2,521
Operating expenses:
Selling, general and administrative 2,654 2,876
Research and development 706 850
3,360 3,726
Operating income (loss) 275 (1,205)
Other income (expense):
Interest expense, net (26) (10)
Gain on sale of assets --- 258
(26) 248
Income (loss) before income taxes 249 (957)
Income tax expense (68) ---
Net income (loss) $ 181 $ (957)
Net income (loss) per
common share - basic $ 0.03 $ (0.15)
Weighted-average number of shares
outstanding 6,989,265 6,286,851
DTM Corporation
(In thousands, except share and per share amounts)
Nine Months Statement of Operations (unaudited):
Nine Months Ended
September 30,
1999 1998
Revenues:
Products $20,216 $16,624
Service and support 2,991 2,591
23,207 19,215
Cost of sales:
Products 9,171 10,289
Service and support 2,071 1,632
11,242 11,921
Gross Profit 11,965 7,294
Operating expenses:
Selling, general and administrative 8,845 8,227
Research and development 2,156 2,693
Provision for litigation settlement --- 1,700
11,001 12,620
Operating income (loss) 964 (5,326)
Other income (expense):
Interest expense, net (54) (30)
Gain on sale of assets 129 258
75 228
Income (loss) before income taxes 1,039 (5,098)
Income tax expense (289) ---
Net income (loss) $ 750 $(5,098)
Net income (loss) per common share - basic $0.11 $( 0.81)
Weighted-average number of shares
outstanding 6,737,404 6,286,851
DTM Corporation
(In thousands, except share and per share amounts)
Balance Sheets (unaudited for 1999):
September 30, December 31,
1999 1998
Assets
Current assets:
Cash $ 671 $ 429
Accounts receivable, net 6,354 5,186
Inventory 3,492 3,456
Prepaid expenses and other 466 262
Total current assets 10,983 9,333
Property, net 1,331 1,388
Capitalized software development
costs, net 457 629
Patent and license fees, net 785 956
Total assets $ 13,556 $ 12,306
Liabilities and shareholders' equity
Current liabilities:
Line of credit $ 925 $ ---
Accounts payable 2,884 3,090
Due to shareholder --- 909
Deferred revenues and
customer deposits 2,140 2,185
Employee and agent compensation 883 891
Income taxes 289 ---
Accrued litigation settlement
- stock portion --- 400
Total current liabilities 7,121 7,475
Shareholders' equity:
Common stock, 6,973,503 shares
outstanding at September 30, 1999
and 6,286,851at December 31, 1998 1 1
Additional paid-in capital 54,016 53,161
Accumulated deficit (47,585) (48,335)
Accumulated other comprehensive income 3 4
Total shareholders' equity 6,435 4,831
Total liabilities and
shareholders' equity $ 13,556 $ 12,306