3D SYSTEMS CORP - FORM 8-K - EX-99 - EXHIBIT 99.2

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8-K - FORM 8-K - 3D SYSTEMS CORP	f8k_072910.htm
EX-99 - EXHIBIT 99.1 - 3D SYSTEMS CORP	exh_991.htm

Participants

Stacey Witten

Coordinator, Investor Relations

Abe Reichental

President & Chief Executive Officer

Damon Gregoire

Senior Vice President & Chief Financial Officer

Bob Grace

Vice President & General Counsel

Welcome Webcast Viewers

To listen to the conference via phone and to
ask questions during our Q&A session, please
dial:

1-888-336-3485 in the United States

1-706-634-0653 from outside the United
States

Participant Code: 81216601

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, 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 expressed or implied by such forward-looking statements. In
addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider
statements in the future or conditional tenses or that include the terms “believes,” “belief,” “estimates,”
“expects,” “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. Forward-looking statements are based upon management’s current
expectations concerning future events and trends and are necessarily subject to uncertainties, many of
which are outside the control of the company. The factors stated under the headings “Forward-Looking
Statements,” “Cautionary Statements and Risk Factors,” and “Risk Factors” that appear 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.

Operating Results

Abe Reichental, President & CEO

We experienced improved global business conditions

We enjoyed quarter-over-quarter revenue growth from
all revenue buckets led by materials and Production
Systems revenue contributions and record 3D printer
sales

We expanded gross profit margin

We continued to grow our 3Dproparts™ service
organically and through additional acquisitions

We ended the quarter with a backlog of $5.2 million

We generated $2.7 million net income

Second Quarter 2010 Overview

Financial Review

Damon Gregoire, Senior Vice President & CFO

Second Quarter 2010 Operating Results

($ Millions except per share amounts)

EPS included the negative impact of 3 cents per share

planned V-Flash® ramp up and 5 cents per share from

litigation costs

Six Months 2010 Operating Results

($ Millions except per share amounts)

EPS included the negative impact of 4 cents per share

planned V-Flash® ramp up and 9 cents per share from

litigation costs

Systems revenue in Q2 2010 consisted of:

35% large-frame systems (15% in Q2 2009)

23% mid-frame systems (45% in Q2 2009)

42% 3D printers (40% in Q2 2009)

Services revenue includes:

Maintenance and warranty contract revenue

Sales of system upgrades

Installation of and training on machines

3Dproparts™ sales

**Columns may not foot due to rounding

Healthcare solutions represented 14% of total revenue

Recurring revenue from materials and services amounted to
73% of total healthcare solutions revenue

Healthcare solutions revenue consists of sales of systems,
materials and services for:

Hearing aid applications,

Dental applications, and

Medical device applications

Given its early development stage, healthcare solutions
revenue may fluctuate due to timing of Production Systems
sales within a reporting period

Healthcare Solutions Second Quarter Revenue

Gross margin improved compared to the second quarter
of 2009

Net income of $2.7 million included $2.4 million of non-
cash expenses

Cash position decreased from the previous quarter to
$25.9 million, after funding our acquisition of DPT, and
we continue to carry no debt on our balance sheet

Inventory increased due in part to the timing of sales
and revenue recognition at quarter-end

($ Millions)

Second Quarter Revenue Composition by Category and Region

Recurring revenue represents 70% of total revenue

2009

2010

2009

2010

Asia Pacific

Europe

North

America

$35.1

$24.7

10%

$35.1

30%

40%

47%

38%

30%

24%

49%

13%

46%

44%

29%

Systems gross profit margin benefited from:

The continued favorable impact of operational and cost
improvements

Better overhead absorption over a larger revenue base

**Columns may not foot due to rounding

Systems gross profit margin benefited from:

The continued favorable impact of operational and cost
improvements

Better overhead absorption over a larger revenue base

100

120

140

160

Days Inventory On Hand

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

101

132

121

102

100

125

122

Q3 2009

Q4 2009

Q1 2010

105

Second Quarter Working Capital Management

103

Q2 2010

Six Months Working Capital Update

($ Thousands)

Long Term Operating Model

$150 million

$200 million

Revenue

Gross Profit

SG&A

R&D

Operating Income

Net Income after tax

Depreciation & Amortization

Capital Expenditures

Recurring Revenue

48%

25%

15%

10%

70%

58%

23%

28%

20%

80%

This target model is not intended to constitute financial guidance related to the company’s
expected performance. It is based upon management’s current expectations concerning
future events and trends and is necessarily subject to uncertainties.

Progress & Outlook

Abe Reichental, President & CEO

Recent Developments

We expanded our 3Dproparts™ services by:

Acquiring Design Prototyping Technologies (Q2 2010)

Acquiring CEP and ProtoMetal (Q3 2010)

Investing in new state-of-the-art iPro™ and sPro™ capacity
including two new iPro™ XL systems

We grew our healthcare solutions revenue and installed
base

We expanded our reseller channel and achieved new
quarterly record 3D printer revenues resulting in a 92%
improvement over the comparable 2009 quarter

Growth Drivers

We entered the third quarter of 2010 with a strong
sales funnel

We expect 3D printer sales to continue to grow,
helped by expanding channel and our V-Flash® and
ProJet™ printers marketplace acceptance

We expect revenue from our 3Dproparts™ services
to continue to grow globally

We expect sales of our healthcare solutions to
increase, benefiting from our expanding solutions
portfolio and growing installed base

We expect continued revenue growth over prior year
quarters and sequentially during the second half of
2010

We expect continued record 3D printer revenue
growth driven by:

Higher ProJet™ and V-Flash® sales

Although our total printer revenue is above our
expectations, given the favorable and significant
shift in mix towards higher priced higher throughput
printers, we expect that it might take longer to
reach our 250 unit/quarter V-Flash® sales target

We expect 3Dproparts™ revenue run-rate to reach 15-
20% of our total fourth quarter 2010 revenue

Revenue Outlook

Gross Profit and Operating Expenses Outlook

We expect our gross profit margin to remain stable despite:

Potential adverse systems mix in favor of lower margin printers and
integration period of acquired businesses and

Continued negative 2-4 percentage point quarterly drag from
V-Flash® through the second half of 2010

We expect SG&A to be in the range of $19.0 - 21.5 million for
the remainder of 2010:

Inclusive of our anticipated litigation expenses as we currently
understand them

Increased operating costs associated with 3Dproparts™ acquisitions
we made thus far

We expect R&D spending for the remainder of 2010 to be in the
range of $5.0 - 6.0 million while keeping pace with our
planned new product introductions

Bottom Line

Our sales funnel remains robust

Our Parts, Printers and Production Systems
are expected to generate increased customer
demand

Our business model is built around significant,
recurring revenue components that generate
improved margins

We remain committed to our long-term growth objectives and confident in
our ability to provide value to our customers and stockholders

Q&A Session

Out of respect for other
conference call participants,
please ask one question and then
return to the queue to ask
additional questions.

Please direct all questions
through the teleconference
portion of this call.

To ask questions:

• Phone: 1-888-336-3485

• International: 1-706-634-0653

• Participant code: 81216601

Thank You for Participating

Replay available at www.3dsystems.com/ir

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