FOR IMMEDIATE RELEASE
April 19, 1999
Contact:Geoff Kreiger +1-512-339-2922
Austin, Texas: DTM Corporation (Nasdaq: DTMC)
today announced net income for the first quarter of 1999 was
$274,000, or $0.04 per share on a fully
diluted basis. This is a substantial improvement from the first
quarter of 1998
loss of $1,334,000, or $0.21 per share,
including a $125,000 charge related to new product introductions.
Revenues were
$8.0 million in the first quarter of 1999, an
increase of 37% from $5.8 million in the first quarter of 1998.
John Murchison, III, DTM’s President and CEO,
stated, "We are pleased that our first quarter is a substantial
improvement over the first quarter of 1998 and
that the improved operating trends started in 1998 are continuing.
This
is our second consecutive quarter of
profitability and the 37% increase in revenues is the fourth
consecutive quarter of
double digit, period-to-period revenue
increases. We also achieved a 54% gross margin, compared with the 41%
margin achieved in the first quarter of 1998.
This is the second consecutive quarter with gross margins exceeding
50%.
This improvement in operations was made
possible by our new generation of products and by a continuing focus
by our
employees on operating cost containment. We
believe the new products and initiatives launched in early 1999
combined
with improvements implemented in 1998 will
allow us to continue to improve our competitiveness."*
Kevin McAlea, DTM’s Vice President of
Marketing and Business Development, commented, "During the first
quarter, we were able to introduce new and
improved products at the pace we maintained throughout 1998. Included
in
this array of new products is CastForm, a
sintering material that allows users of DTM Sinterstation Systems to
create
complex patterns for investment casting
applications. Based on the successful testing of CastForm patterns by
foundries, we believe that this new material
will significantly improve our ability to compete for this segment of
the
rapid prototyping market. Sales of CastForm
should begin to impact our operating results during 1999.
"We also are very excited about our license
agreement with Rockwell, which gives us the exclusive worldwide rights
to
Rockwell’s Direct Metal Fabrication (DMF)
technology for Selective Laser Sintering applications. The DMF process
is compatible with existing DTM Sinterstation
Systems and can equip our customers with the means to create fully
dense, homogeneous functional metal parts in a
range of metal powders. We believe the DMF technology provides us
our first entry into the important functional
metal parts market which may be equal or greater than the functional
plastic
parts market now served by DTM."*
Geoff Kreiger, DTM’s Vice President of Finance
and Administration, stated, "Our focus on asset management,
operating efficiency improvements and product
cost reduction continue to enhance our performance. Inventories were
at the lowest point in the last two years,
primarily due to the much shorter manufacturing cycle for our new
generation
of products. In addition, our working capital
increased by $1.0 million during the quarter, due, primarily, to
positive cash
flow from operations. A second quarter 1998
liability was satisfied by the issuance of $400,000 worth of DTM
common
stock, as the final step in the agreement to
settle our shareholder class action lawsuit.
"We made provision for income taxes at a 28%
rate this quarter. The changes in ownership that occurred this quarter
have caused our net operating loss
carryforwards to be further limited as to how much can be used each
year to offset
taxable income annually. We will continue to
provide for income taxes based upon the estimated annual effective tax
rates considering these new annual limits on
the utilization of net operating loss carryforwards."*
About DTM Corporation
DTM Corporation develops manufactures and
markets the Sinterstation family of rapid prototyping products for
application in the rapid manufacturing
marketplace. The Sinterstation systems and materials are based on
proprietary
and patented SLS selective laser sintering
technology. The Company’s products are used to accelerate the design,
development and market introduction of
products in an expanding range of industries.
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:
DTM had been unprofitable since inception
through the third quarter of 1998; the Company’s stock price and
public
float could cause its stock to be delisted
from the NASDAQ National Market, 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;
seasonality of customer buying habits,
principally a slower third quarter, may adversely affect stock prices;
DTM may
not emerge as a market leader, or even a major
market participant and its markets may not develop; price reductions,
reduced margins and loss of market share may
occur as a result of increasing competition; 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; the
Company’s intellectual property and proprietary rights may not be
valid or
infringe the rights of others; DTM may fail to
manage or experience future growth; DTM has significant international
operations with the inherent exposures;
actions by controlling shareholder could adversely affect stock
prices; potential
liabilities resulting from undetected errors
or defects in Company products; possible issuance of preferred stock
could
adversely affect common shareholders; sales of
a large block of stock and sales of shares issuable pursuant to
employee stock options could adversely affect
stock prices; 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.
_______________________________________________________________
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