DTM Corporation Reports Earnings of $0.02 Per Share for the First Quarter

Apr 25, 2001, 01:00 ET from DTM Corporation

    AUSTIN, Texas, April 25 /PRNewswire/ -- DTM Corporation (Nasdaq:   DTMC)
 today announced that net income for the quarter ended March 31, 2001 was
 $132,000, or $0.02 per diluted share.  This compares to 2000's first quarter
 net income of $362,000, or $0.05 per share.  Revenues for the quarter ended
 March 31, 2001 were $9.6 million, an 18% increase over the comparable prior
 period revenues of $8.2 million.
     John S. Murchison, III, DTM's President and CEO, said, "We are very
 disappointed with our operating results for the first quarter.  While our
 revenue growth was very good and in line with what we have been experiencing,
 our profits fell short of the prior period result.  Both product and service
 revenues were up significantly over 2000.  The growth in revenue was driven by
 strong material sales in all three primary geographic markets and better than
 expected machine shipments to customers in Europe.
     "The profit shortfall in the first quarter was due to higher than expected
 cost for materials, including expedited international delivery charges, and
 poorer than forecast gross margin results from service and support.  Our
 earnings for the quarter would have exceeded our 2000 results had we not
 experienced the higher delivery costs for materials and shortfall with service
 gross margins.
     "We continue to be excited about the impact the LaserForm ST-100 metal
 powder material system is having on our business.  Customer adoption of the
 LaserForm ST-100 metal powder system for the production of prototype tooling
 and functional prototype metal parts continued at a very fast pace during the
 first quarter.  It is worth noting that approximately 35 % of the machines we
 sold in the first quarter were equipped to process the LaserForm ST-100 metal
 powder material.  This was the third consecutive quarter in which LaserForm
 ST-100 has influenced machine sales to that degree and reinforces our belief
 that the applications for LaserForm ST-100 will have a positive impact on
 2001 operating results.
     "We are very excited about the plan to merge with 3D Systems that was
 announced in April.  The pending combination brings together two companies who
 are market leaders with their respective technologies.  We believe the
 combined company will offer significant benefits to existing rapid prototyping
 customers and be much better positioned to develop the emerging new
 applications such as small volume manufacturing.
     "While we have some concerns about a softening in the U.S. economy, we
 believe our business is generally healthy.  In addition, we expect to see
 improvement in the landed cost of materials and service gross margins as we go
 forward."*
 
     About DTM Corporation
     We market a system called the Sinterstation(R).  It uses computer-
 generated 3-dimensional drawings to quickly produce accurate, durable parts by
 fusing powdered materials into solid objects with a laser.  The parts are then
 used in dozens of ways: as models, prototypes, molds, tooling, and patterns --
 even as final products.
     With a Sinterstation, our customers like Boeing, Daimler Chrysler,
 Whirlpool and others can go from their design files to plastic, metal, or
 ceramic parts in hours or days, rather than weeks or months.  By creating
 parts directly from their computer drawings, they can test, produce, and
 market their new products sooner -- and often with less cost.
     Our customers say they prefer the Sinterstation to other options because
 it is the fastest, most flexible, adaptable "rapid manufacturing" solution on
 the market today.
     For additional product information and investor services, visit the
 company's Website at http://www.dtm-corp.com or call us at +1.512.339.2922.
 
     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
 and adversely from those set forth in the forward-looking statements,
 including, without limitation: the markets being developed may not develop;
 price reductions, reduced margins and loss of market share may occur as a
 result of competition; quarterly fluctuations in operating results and the
 difficulty in predicting results of operations may adversely affect stock
 prices; additional capital sufficient to finance the business may not be
 available, when needed, or if available might cause significant dilution;
 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; intellectual property and proprietary rights may not be valid or
 infringe the rights of others; ongoing litigation with a competitor may have
 an unfavorable outcome, significant international operations have inherent
 exposures; actions by controlling shareholder could adversely affect stock
 prices; potential liabilities could result from undetected errors or defects
 in products; and the stock price could be volatile, regardless of financial
 performance.
 
     Risks Relating to the Merger Agreement and Tender Offer
     3D Systems Corp. (Nasdaq:   TDSC) and DTM Corporation announced on April 3,
 2001 that they have signed a definitive merger agreement under which 3D
 Systems will purchase all of the outstanding shares of common stock of DTM for
 $5.80 per share in cash.
     The ability of the parties to consummate the tender offer and the other
 transactions contemplated by the merger agreement are subject to a number of
 significant risks and uncertainties.  In particular, in the event that
 3D Systems fails to secure or maintain financing commitments in an amount
 sufficient to fund the acquisition and provide for its ongoing working capital
 needs, 3D Systems would be unable to commence or complete the tender offer.
 Such failure to commence or complete the tender offer likely would cause DTM's
 stock price to decline to levels at or below where it was prior to the
 announcement of the transactions contemplated by the merger agreement.
 Accordingly, investors should proceed with caution before engaging in
 transactions in DTM's stock in contemplation of the tender offer or the merger
 with 3D Systems.  In addition, DTM has incurred, and will continue to incur,
 substantial expenses in connection with the transactions contemplated by the
 merger agreement.  In the event that 3D Systems fails to obtain sufficient
 financing to commence or complete the tender offer, 3D Systems would not be
 obligated to reimburse DTM for such expenses.  As a result, DTM's operating
 results and financial condition, both in current and future periods, would be
 adversely affected.
     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.
 
     Note to Editors: Sinterstation(R) and SLS(R) are registered trademarks of
 DTM Corporation in the United States.  DTM(TM), LaserForm(TM), CastForm(TM),
 DuraForm(TM) and SandForm(TM) are trademarks of DTM Corporation in the United
 States.
 
 
      DTM Corporation
      Consolidated Statement of Income
      Three Months Ended                                      March 31,
      Unaudited                                         2001           2000
                                                       (In thousands, except
                                                          per share amounts)
     Revenues
       Products                                        $7,945         $6,799
       Service and support                              1,677          1,354
                                                        9,622          8,153
 
     Cost of sales:
       Products                                         4,037          3,125
       Service and support                              1,484            913
                                                        5,521          4,038
 
     Gross profit                                       4,101          4,115
 
     Operating expenses:
       Selling, general and administrative              2,917          2,696
       Research and development                           957            874
                                                        3,874          3,570
 
     Operating income                                     227            545
 
     Other income (expense):
       Interest expense, net                              (13)           (19)
       Loss on fixed asset disposals                      (18)           ---
                                                          (31)           (19)
 
     Income before income taxes                           196            526
 
     Income tax expense                                    64            164
 
     Net income                                          $132           $362
 
     Earnings per share:
       Basic earnings per share                         $0.02          $0.05
       Diluted earnings per share                       $0.02          $0.05
 
     Weighted average shares outstanding:
       Basic                                            7,087          7,005
       Diluted                                          7,388          7,270
 
 
      DTM Corporation
      Consolidated Balance Sheets
      Unaudited                                              March 31,
                                                        2001            2000
                                                           (In thousands)
     Assets
     Current assets:
       Cash                                            $1,159          $ 815
       Accounts receivable, net                         8,221          7,237
       Inventories                                      3,907          2,903
       Prepaid expenses and other                         483            794
       Deferred income taxes                              611            ---
       Total current assets                            14,381         11,749
     Property, net                                      1,891          1,461
     Capitalized software development costs, net          442            401
     Patent and license fees, net                         432            672
 
     Total assets                                     $17,146        $14,283
 
     Liabilities and shareholders' equity
     Current liabilities:
       Bank line of credit                              $ ---         $1,323
       Accounts payable                                 2,447          2,011
       Deferred revenues and customer deposits          2,330          2,242
       Employee and agent compensation                  1,021            852
       Income taxes                                       524            120
       Total current liabilities                        6,322          6,548
 
     Shareholders' equity:
       Common stock - 7,090,989 shares
        outstanding at March 31, 2001                       1              1
       Additional paid-in capital                      54,270         54,136
       Accumulated deficit                            (43,156)       (46,254)
       Accumulated other comprehensive loss              (291)          (148)
       Total shareholders' equity                      10,824          7,735
 
     Total liabilities and shareholders' equity       $17,146        $14,283
 
      Contact:
      Geoff Kreiger +1.512.339.2922
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X22936513
 
 

SOURCE DTM Corporation
    AUSTIN, Texas, April 25 /PRNewswire/ -- DTM Corporation (Nasdaq:   DTMC)
 today announced that net income for the quarter ended March 31, 2001 was
 $132,000, or $0.02 per diluted share.  This compares to 2000's first quarter
 net income of $362,000, or $0.05 per share.  Revenues for the quarter ended
 March 31, 2001 were $9.6 million, an 18% increase over the comparable prior
 period revenues of $8.2 million.
     John S. Murchison, III, DTM's President and CEO, said, "We are very
 disappointed with our operating results for the first quarter.  While our
 revenue growth was very good and in line with what we have been experiencing,
 our profits fell short of the prior period result.  Both product and service
 revenues were up significantly over 2000.  The growth in revenue was driven by
 strong material sales in all three primary geographic markets and better than
 expected machine shipments to customers in Europe.
     "The profit shortfall in the first quarter was due to higher than expected
 cost for materials, including expedited international delivery charges, and
 poorer than forecast gross margin results from service and support.  Our
 earnings for the quarter would have exceeded our 2000 results had we not
 experienced the higher delivery costs for materials and shortfall with service
 gross margins.
     "We continue to be excited about the impact the LaserForm ST-100 metal
 powder material system is having on our business.  Customer adoption of the
 LaserForm ST-100 metal powder system for the production of prototype tooling
 and functional prototype metal parts continued at a very fast pace during the
 first quarter.  It is worth noting that approximately 35 % of the machines we
 sold in the first quarter were equipped to process the LaserForm ST-100 metal
 powder material.  This was the third consecutive quarter in which LaserForm
 ST-100 has influenced machine sales to that degree and reinforces our belief
 that the applications for LaserForm ST-100 will have a positive impact on
 2001 operating results.
     "We are very excited about the plan to merge with 3D Systems that was
 announced in April.  The pending combination brings together two companies who
 are market leaders with their respective technologies.  We believe the
 combined company will offer significant benefits to existing rapid prototyping
 customers and be much better positioned to develop the emerging new
 applications such as small volume manufacturing.
     "While we have some concerns about a softening in the U.S. economy, we
 believe our business is generally healthy.  In addition, we expect to see
 improvement in the landed cost of materials and service gross margins as we go
 forward."*
 
     About DTM Corporation
     We market a system called the Sinterstation(R).  It uses computer-
 generated 3-dimensional drawings to quickly produce accurate, durable parts by
 fusing powdered materials into solid objects with a laser.  The parts are then
 used in dozens of ways: as models, prototypes, molds, tooling, and patterns --
 even as final products.
     With a Sinterstation, our customers like Boeing, Daimler Chrysler,
 Whirlpool and others can go from their design files to plastic, metal, or
 ceramic parts in hours or days, rather than weeks or months.  By creating
 parts directly from their computer drawings, they can test, produce, and
 market their new products sooner -- and often with less cost.
     Our customers say they prefer the Sinterstation to other options because
 it is the fastest, most flexible, adaptable "rapid manufacturing" solution on
 the market today.
     For additional product information and investor services, visit the
 company's Website at http://www.dtm-corp.com or call us at +1.512.339.2922.
 
     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
 and adversely from those set forth in the forward-looking statements,
 including, without limitation: the markets being developed may not develop;
 price reductions, reduced margins and loss of market share may occur as a
 result of competition; quarterly fluctuations in operating results and the
 difficulty in predicting results of operations may adversely affect stock
 prices; additional capital sufficient to finance the business may not be
 available, when needed, or if available might cause significant dilution;
 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; intellectual property and proprietary rights may not be valid or
 infringe the rights of others; ongoing litigation with a competitor may have
 an unfavorable outcome, significant international operations have inherent
 exposures; actions by controlling shareholder could adversely affect stock
 prices; potential liabilities could result from undetected errors or defects
 in products; and the stock price could be volatile, regardless of financial
 performance.
 
     Risks Relating to the Merger Agreement and Tender Offer
     3D Systems Corp. (Nasdaq:   TDSC) and DTM Corporation announced on April 3,
 2001 that they have signed a definitive merger agreement under which 3D
 Systems will purchase all of the outstanding shares of common stock of DTM for
 $5.80 per share in cash.
     The ability of the parties to consummate the tender offer and the other
 transactions contemplated by the merger agreement are subject to a number of
 significant risks and uncertainties.  In particular, in the event that
 3D Systems fails to secure or maintain financing commitments in an amount
 sufficient to fund the acquisition and provide for its ongoing working capital
 needs, 3D Systems would be unable to commence or complete the tender offer.
 Such failure to commence or complete the tender offer likely would cause DTM's
 stock price to decline to levels at or below where it was prior to the
 announcement of the transactions contemplated by the merger agreement.
 Accordingly, investors should proceed with caution before engaging in
 transactions in DTM's stock in contemplation of the tender offer or the merger
 with 3D Systems.  In addition, DTM has incurred, and will continue to incur,
 substantial expenses in connection with the transactions contemplated by the
 merger agreement.  In the event that 3D Systems fails to obtain sufficient
 financing to commence or complete the tender offer, 3D Systems would not be
 obligated to reimburse DTM for such expenses.  As a result, DTM's operating
 results and financial condition, both in current and future periods, would be
 adversely affected.
     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.
 
     Note to Editors: Sinterstation(R) and SLS(R) are registered trademarks of
 DTM Corporation in the United States.  DTM(TM), LaserForm(TM), CastForm(TM),
 DuraForm(TM) and SandForm(TM) are trademarks of DTM Corporation in the United
 States.
 
 
      DTM Corporation
      Consolidated Statement of Income
      Three Months Ended                                      March 31,
      Unaudited                                         2001           2000
                                                       (In thousands, except
                                                          per share amounts)
     Revenues
       Products                                        $7,945         $6,799
       Service and support                              1,677          1,354
                                                        9,622          8,153
 
     Cost of sales:
       Products                                         4,037          3,125
       Service and support                              1,484            913
                                                        5,521          4,038
 
     Gross profit                                       4,101          4,115
 
     Operating expenses:
       Selling, general and administrative              2,917          2,696
       Research and development                           957            874
                                                        3,874          3,570
 
     Operating income                                     227            545
 
     Other income (expense):
       Interest expense, net                              (13)           (19)
       Loss on fixed asset disposals                      (18)           ---
                                                          (31)           (19)
 
     Income before income taxes                           196            526
 
     Income tax expense                                    64            164
 
     Net income                                          $132           $362
 
     Earnings per share:
       Basic earnings per share                         $0.02          $0.05
       Diluted earnings per share                       $0.02          $0.05
 
     Weighted average shares outstanding:
       Basic                                            7,087          7,005
       Diluted                                          7,388          7,270
 
 
      DTM Corporation
      Consolidated Balance Sheets
      Unaudited                                              March 31,
                                                        2001            2000
                                                           (In thousands)
     Assets
     Current assets:
       Cash                                            $1,159          $ 815
       Accounts receivable, net                         8,221          7,237
       Inventories                                      3,907          2,903
       Prepaid expenses and other                         483            794
       Deferred income taxes                              611            ---
       Total current assets                            14,381         11,749
     Property, net                                      1,891          1,461
     Capitalized software development costs, net          442            401
     Patent and license fees, net                         432            672
 
     Total assets                                     $17,146        $14,283
 
     Liabilities and shareholders' equity
     Current liabilities:
       Bank line of credit                              $ ---         $1,323
       Accounts payable                                 2,447          2,011
       Deferred revenues and customer deposits          2,330          2,242
       Employee and agent compensation                  1,021            852
       Income taxes                                       524            120
       Total current liabilities                        6,322          6,548
 
     Shareholders' equity:
       Common stock - 7,090,989 shares
        outstanding at March 31, 2001                       1              1
       Additional paid-in capital                      54,270         54,136
       Accumulated deficit                            (43,156)       (46,254)
       Accumulated other comprehensive loss              (291)          (148)
       Total shareholders' equity                      10,824          7,735
 
     Total liabilities and shareholders' equity       $17,146        $14,283
 
      Contact:
      Geoff Kreiger +1.512.339.2922
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X22936513
 
 SOURCE  DTM Corporation