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3D Systems Reports 2012 Results

3D Systems Reports 2012 Results

- Delivers Record Quarterly and Annual Revenue and Gross Profit

- Completes Three-for-Two Stock Split and Commences Post Split NYSE Trading

- Expects 2013 Revenue of $440 million to $485 million and non-GAAP EPS of
$1.00 to $1.15

ROCK HILL, S.C., Feb. 25, 2013 (GLOBE NEWSWIRE) -- 3D Systems Corporation
(NYSE:DDD) announced today non-GAAP earnings of 39 cents per share for the
fourth quarter of 2012 and GAAP earnings of 19 cents per share resulting in
full year 2012 non-GAAP earnings of $1.25 and GAAP earnings of $0.71.

The company reported that its fourth quarter revenue grew 45.4% from the prior
year to $101.6 million on a 93% surge in printers' and other products revenue
and 18.8% organic growth. Stronger printer demand bolstered quarter-end
backlog to $11.4 million at year-end, a 23% sequential increase, which
included $3.2 million related to current printers' sales. Gross profit
increased 60% and gross profit margin expanded 460 basis points to 51.7%
contributing to non-GAAP net income improvement of 64% over the 2011 quarter.

For the full year 2012, revenue grew 53.5% to $353.6 million, on 90% printers'
and other products revenue increase and 22.4% organic growth. Gross profit
increased 66.2% and gross profit margin expanded 390 basis points to 51.2%.

The company generated $53.0 million of cash from operations in 2012, and ended
the year with $155.9 million of available cash, after incurring a $46.5
million increase in its annual operating expenses primarily from increased
sales, marketing and acquisitions costs. The increase included $8.9 million of
higher R&D expenditures in support of its expanded portfolio.

"We are very pleased to report outstanding quarterly and annual results on
accelerated printers' sales," said Avi Reichental, 3D Systems' President and
Chief Executive Officer. "We believe that our results reflect the potency of
our diversified portfolio, productivity of our channels and effectiveness of
our strategic growth initiatives."

The table below summarizes the company's key 2012 non-GAAP financial results
for the fourth quarter and full year.

Non-GAAP
Operating     Fourth Quarter            Full Year
Highlights
($ in
millions,                 % Change                     % Change
except per    2012  2011  Favorable     2012    2011   Favorable
share                     (Unfavorable)                (Unfavorable)
amounts)
Revenue       $     $     45.4%         $ 353.6 $      53.5%
(GAAP)        101.6 69.9                        230.4
Gross profit  $     $     59.7%        $       $      66.0%
              52.6  32.9               181.4 109.3
% of revenue  51.7% 47.1%              51.3%   47.4%  
Operating     $     $     (67.5%)       $ 99.8 $      (58.3%)
expenses      28.2 16.8                       63.0
% of revenue  27.7% 24.1%              28.2%   27.4%  
Operating     $     $     51.5%        $       $      76.5%
income        24.4 16.1               81.6  46.3
% of revenue  24.0% 23.0%              23.1%   20.1%  
Net income    $     $     63.6%         $ 67.9 $      65.7%
              22.6 13.8                       41.0
% of revenue  22.2% 19.8%              19.2%   17.8%  
Diluted             $
earnings per  $0.39 0.27  44.4%         $1.25   $0.81  54.3%
share
Available     $     $                           $
cash & cash   155.9 179.1 (13.0%)       $ 155.9 179.1  (13.0%)
equivalents
Depreciation  $     $
&             2.4  1.5  (63.3%)       $ 10.1 $ 6.0 (67.4%)
amortization
% of revenue  2.3%  2.7%               2.9%    2.6%   
                                                                         
- Gross profit, operating expenses, operating income, net income and
earnings per share have been adjusted to reflect non-GAAP operating       
results. See the reconciliation of non-GAAP data to GAAP net income
and earnings per share at the end of this press release.

3D printers and other products revenue nearly doubled to $126.8 million on
stronger demand as a result of the company's effective portfolio convergence,
price point re-alignment and channel expansion. Print materials revenue grew
46.1% to $103.2 million on 124.2% higher printer units and services revenue
increased by $30.5 million over 2011 to $123.7 million and included $79.2
million of on-demand parts.

"We are thrilled with the progress we are making on our consumer growth
initiative and expect revenue from our consumer products to be meaningful to
our revenue in the second half of 2013," continued Reichental.

The company announced that its three-for-two stock split was completed
effective on the close of business Friday, February 22, 2013 by distributing a
50% stock dividend in the form of additional shares to its stockholders of
record on February 15, 2013. Trading of the company's common stock on the New
York Stock Exchange will begin this morning on a split-adjusted basis at
approximately 66% of last Friday's closing price.

The company announced its annual guidance for the full year 2013, expecting
its revenue to be in the range of $440 million to $485 million and its
non-GAAP earnings per share to be in the range of $1.00 to $1.15, on a
post-split basis, inclusive of the acquisition of Geomagic, which the company
expects to close by the end of February 2013.

"We entered 2013 with positive sales momentum shaped by increased demand from
advanced manufacturing activities. While we may face lingering economic
uncertainties in parts of the world, we expect to continue to benefit from
robust R&D and manufacturing spending by our customers worldwide," concluded
Reichental.

Conference Call and Webcast Details

3D Systems will hold a conference call and webcast to discuss its operating
results for the fourth quarter and full year 2012 on Monday, February 25, 2013
at 9:00 a.m., Eastern Time.

  *To access this webcast, log onto 3D Systems' web site at
    investor.3dsystems.com.To ensure timely participation and technical
    capability, we recommend logging on a few minutes prior to the conference
    call to activate your participation.
    
  *To access this conference call, dial 1-800-295-3991 from in the U.S. or
    1-617-614-3924 from outside the U.S. and enter participant code 68343877.
    
  *The webcast will be also be available for replay beginning approximately
    two hours after completion of the call at: investor.3dsystems.com.

The company filed its Annual Report on Form 10-K today and copies are
available free of charge upon request from Investor Relations.

Forward-Looking Statements

Certain statements made in this release 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, uncertainties and other factors that may
cause the actual results, performance or achievements of the company to be
materially different from historical results or from any future results or
projections expressed or implied by such forward-looking statements. In
addition to statements that explicitly describe such risks and uncertainties,
readers are urged to consider statements in the conditional or future tenses
or that include terms such as "believes," "belief," "expects," "estimates,"
"intends," "anticipates" or "plans" to be uncertain and forward-looking.
Forward-looking statements may include comments as to the company's beliefs
and expectations as to future events and trends affecting its business and are
necessarily subject to uncertainties, many of which are outside the control of
the company.The factors described under the headings "Forward-Looking
Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in
the company's periodic filings with the Securities and Exchange Commission, as
well as other factors, could cause actual results to differ materially from
those reflected or predicted in forward-looking statements.

Presentation of Information in This Press release

The company reported non-GAAP measures that adjust net income and earnings per
share by excluding the impact of amortization of intangibles, non-cash
interest expense, non-recurring acquisition expenses, litigation settlements,
loss on conversion of notes, stock-based compensation expense and releases of
the valuation allowance on deferred tax assets. A reconciliation of GAAP to
non-GAAP results is provided in the accompanying schedule.

About 3D Systems Corporation

3D Systems is a leading provider of 3D content-to-print solutions including 3D
printers, print materials and on-demand custom parts services for
professionals and consumers alike. The company also provides affordable CAD
modeling, reverse engineering and inspection software tools and consumer 3D
printers, apps and services. Its expertly integrated solutions replace and
complement traditional methods and reduce the time and cost of designing and
manufacturing new products. 3D Systems' products and services are used to
rapidly design, communicate, prototype or produce real functional, parts,
empowering customers to create and make with confidence.

More information on the company is available at www.3DSystems.com.

The 3D Systems Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4537

                                Tables Follow



3D Systems Corporation
Audited Consolidated Statements of Operations and Comprehensive Income
Quarter and Year Ended December 31, 2012 and 2011
                                                               
                           Quarter Ended December 31, Year Ended December 31,
(in thousands, except per   2012          2011         2012        2011
share amounts)
                                                     
Revenue:                                                        
Products                    $68,757     $41,944    $229,980  $137,306
Services                    32,814        27,916       123,653     93,117
                                                               
Total revenue               101,571      69,860      353,633    230,423
                                                               
Cost of sales:                                                  
Products                    31,665       20,837      105,286    66,589
Services                    17,410       16,158      67,151     54,806
                                                               
Total cost of sales         49,075       36,995      172,437    121,395
                                                               
Gross profit                52,496       32,865      181,196    109,028
                                                               
Operating expenses:                                             
Selling, general and        26,524       17,572      97,422     59,795
administrative
Research and development    7,806        4,594       23,203     14,331
                                                               
Total operating expenses    34,330       22,166      120,625    74,126
                                                               
Income from operations      18,166       10,699      60,571     34,902
                                                               
Interest and other expense  8,703        1,991       17,292     2,456
(income), net
                                                               
Income before income taxes  9,463        8,708       43,279     32,446
Provision for (benefit      (1,449)      703         4,338      (2,974)
of)income taxes
                                                               
Net income                  $10,912     $8,005     $38,941   $35,420
                                                               
Other comprehensive income                                      
Unrealized gain (loss) on   (715)         (275)        (714)      (275)
pension obligation
Foreign currency            1,499         (1,493)      1,640       (1,743)
translation gain (loss)
                                                               
Comprehensive income        $11,696     $6,237     $39,867   $33,402
                                                               
Net income per share -      $0.19       $0.16      $0.72     $0.71
basic
                                                               
Net income per share -      $0.19       $0.16      $0.71     $0.70
diluted



3D Systems Corporation
Audited Consolidated Balance Sheets
December 31, 2012 and 2011
                                                                   
                                                                   
(in thousands, except par value)                          2012      2011
ASSETS                                                              
Current assets:                                                     
Cash and cash equivalents                                 $ 155,859 $ 179,120
Accounts receivable, net of allowance for doubtful         79,869    51,195
accounts of $4,317 (2012)and $3,019 (2011)
Inventories, net of reserves of $3,534 (2012)and $2,542   41,820    25,283
(2011)
Prepaid expenses and other current assets                 4,010     2,241
Current deferred income tax asset                          5,867     3,528
Restricted cash                                           13        13
Total current assets                                      287,438   261,380
Property and equipment, net                               34,353    29,594
Intangible assets, net                                    108,377   54,040
Goodwill                                                  240,314   107,651
Long term deferred income tax asset                        107       3,195
Other assets, net                                         6,853     7,114
Total assets                                              $ 677,442 $ 462,974
                                                                   
LIABILITIES AND EQUITY                                              
Current liabilities:                                                
Current portion of capitalized lease obligations          $ 174     $ 163
Accounts payable                                          32,095    25,911
Accrued and other liabilities                             24,789    16,816
Customer deposits                                         2,786     3,398
Deferred revenue                                          15,309    11,260
Total current liabilities                                 75,153    57,548
Long term portion of capitalized lease obligations        7,443     7,609
Convertible senior notes, net                             80,531    131,107
Deferred income tax liability                             23,142    3,656
Other liabilities                                         10,840    8,266
Total liabilities                                         197,109   208,186
Commitments and Contingencies                                       
Stockholders' equity:                                               
Preferred stock, authorized 5,000shares, none issued     —         —
Common stock, $0.001par value, authorized 120,000shares; 60        51
59,855 (2012)and 50,975 (2011)issued
Additional paid-in capital                                460,237   274,542
Treasury stock, at cost:355 (2012) and 324shares (2011) (240)     (214)
Accumulated earnings (deficit )                            16,410    (22,531)
Accumulated other comprehensive income                    3,866     2,940
Total stockholders' equity                                480,333   254,788
Total liabilities and stockholders' equity                 $ 677,442 $ 462,974



3D Systems Corporation
Audited Consolidated Statements of Cash Flows
Year Ended December 31, 2012 and 2011
                                                                   
                                                                   
                                                          
(in thousands)                                             2012      2011
Cash flows from operating activities:                               
Net income                                                $ 38,941  $ 35,420
Adjustments to reconcile net income to net cash provided            
by operating activities:
Benefit of deferred income taxes                          (661)     (5,140)
Depreciation and amortization                             21,229    11,093
Non-cash interest on convertible notes                    3,876     409
Provision for bad debts                                   3,039     1,731
Stock-based compensation                                  5,118     2,637
(Gain) loss on the disposition of property and equipment   (674)     256
and investments
Loss on conversion of convertible debt                     7,021     —
Changes in operating accounts:                                      
Accounts receivable                                       (19,246)  (12,090)
Inventories                                               (12,225)  (2,608)
Prepaid expenses and other current assets                 (794)     45
Accounts payable                                          (238)     (3,457)
Accrued liabilities                                       9,081     141
Customer deposits                                         (1,336)   857
Deferred revenue                                          1,164     525
Other operating assets and liabilities                    (1,251)   (2,159)
Net cash provided by operating activities                 53,044    27,660
Cash flows from investing activities:                               
Purchases of property and equipment                       (3,224)   (2,870)
Proceeds from disposition of property and equipment and    —         174
other assets
Additions to license and patent costs                     (729)     (336)
Cash paid for acquisitions, net of cash assumed           (183,701) (92,677)
Net cash used in investing activities                     (187,654) (95,709)
Cash flows from financing activities:                               
Proceeds from 5.50% convertible notes                      —         148,960
Convertible notes capitalized costs                        —         (3,594)
Proceeds from issuance of common stock                    106,889   62,054
Proceeds from exercise of stock options and restricted     4,400     2,764
stock, net
Repayment of capital lease obligations                    (163)     (221)
Proceeds from capital lease obligations                    —         —
Restricted cash                                          —         12
Net cash provided by financing activities                 111,126   209,975
Effect of exchange rate changes on cash                   223       (155)
Net increase (decrease) in cash and cash equivalents      (23,261)  141,771
Cash and cash equivalents at the beginning of the period  179,120   37,349
Cash and cash equivalents at the end of the period        $ 155,859 $ 179,120



3D Systems Corporation
Schedule 1
Earnings Per Share
                                                               
Following is a reconciliation of the numerator and denominator of the basic
and diluted net earnings per share computations:
                                                                
                         Quarter Ended December 31,   Year Ended December 31,
(in thousands, except per 2012           2011          2012        2011
share amounts)
                                                     
                                                               
Basic and diluted                                               
earnings per share:
Basic earnings per share:                                       
Numerator:                                                      
Net income                $10,912      $8,005      $38,941   $35,420
                                                               
Denominator:                                                    
Weighted average common   57,417        50,615       53,878     49,748
shares outstanding
                                                               
                                                               
Basic earnings per share  $0.19        $0.16       $0.72     $0.71
                                                               
Diluted earnings per                                            
share:
Numerator:                                                      
Net income                $10,912      $8,005      $38,941   $35,420
                                                               
Denominator:                                                    
Weighted average common   57,417        50,615       53,878     49,748
shares outstanding
Effect of dilutive                                             
securities:
Stock options             36            838          604        975
                                                               
Diluted weighted average  57,453        51,453       54,482     50,723
shares outstanding
                                                               
Diluted earnings per      $0.19        $0.16       $0.71     $0.70
share



3D Systems Corporation
Schedule 2
Unaudited Reconciliation of GAAP Net Income to Non-GAAP Net Income
Quarter and Year Ended December 31, 2012 and 2011
                                                              
                      Quarter Ended December 31,    Year Ended December 31,
(in thousands, except  2012            2011          2012         2011
per share amounts)
                                                   
GAAP Net Income        $10,912       $8,005      $38,941    $35,420
                                                              
Adjustments:                                                   
Stock-based            1,317           810           4,613        2,637
compensation
Amortization of        2,894           2,075         11,452       5,050
intangibles ^(a) (b)
Acquisition and        2,015           2,513         4,982        3,664
severance expenses
Non-cash interest      857             400          3,489        400
expenses
Loss on convertible    5,199           --          6,295        --
notes
Net gain on
acquisitions and       --            --          (1,296)      --
litigation settlements
Release of valuation
allowance on deferred  (610)          --          (610)        (6,221)
tax assets
                                                              
Non-GAAP adjusted net  $22,584       $13,803     $67,866    $40,950
income
                                                              
Non-GAAP adjusted
income per share -     $0.39         $0.27       $1.26      $0.82
basic
Non-GAAP adjusted
income per share -     $0.39         $0.27       $1.25      $0.81
diluted
                                                              
                                                              
(a) Represents amortization expense for the quarters ended December 31, 2012
and 2011, of which $54 and $44, respectively, is included in the cost of sales
and the remaining $2,840 and $2,031, respectively, is included in operating
expenses.
(b) Represents amortization expense for the years ended December 31, 2012 and
2011, of which $193 and $237, respectively, is included in the cost of sales
and the remaining $11,259 and $4,813, respectively, is included in operating
expenses.

CONTACT: Investor Contact:
         Stacey Witten
         803-326-4010
         Email: Stacey.Witten@3dsystems.com
        
         Media Contact:
         Cathy Lewis
         781-852-5007
         Email: Cathy.Lewis@3dsystems.com

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