Company plans to file its 2023 Annual Report on Form 10-K after market on August 13, 2024 Significant filing delays and added costs were experienced due to extended close activities and related audit procedures in connection with the 2023 audit Final 2023 financial results yielded no change to revenue, and slight improvement in net loss, versus preliminary results filed on February 28, 2024 No restatement of prior years' results Consistent with prior disclosures, the planned transition of the company's independent audit firm began in Q1 of 2024 Company plans to release Q1'24 financial results on or about August 19, 2024 and Q2'24 financial results the week of August 26, 2024, followed by a call with investors to discuss results for the first half and outlook for the full year ROCK HILL, S.C., Aug. 13, 2024 (GLOBE NEWSWIRE) -- 3D Systems (NYSE:DDD) ("the Company") today announced that it plans to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "Form 10-K") with the Securities and Exchange Commission (the "SEC") after market. In connection with the Company's efforts as it concluded its audit, certain reclassifications and adjustments were made to its fourth quarter and full year 2023 financial results, originally furnished to the SEC on the Company's Current Report on Form 8-K filed on February 28, 2024. Revisions relate primarily to a reduction in the impairment of goodwill, a decrease in interest income and changes in certain expenses. Supplemental financial statements and GAAP to non-GAAP reconciliations are included in the Appendix. Changes to originally reported information are shown below: Unaudited   Three Months Ended December 31, 2023   Year Ended December 31, 2023 (in thousands, expect per share data)   Preliminary - Previously Filed   Final - To BeFiled   Preliminary -Previously Filed   Final - To BeFiled Revenue   $ 114,848     $ 114,848     $ 488,069     $ 488,069   Gross profit   $ 46,348     $ 43,957     $ 198,812     $ 196,421   Operating loss   $ (335,594 )   $ (327,295 )   $ (414,303 )   $ (406,004 ) Net loss attributable to 3D Systems Corporation   $ (300,412 )   $ (292,668 )   $ (370,432 )   $ (362,688 ) Diluted loss per share   $ (2.30 )   $ (2.25 )   $ (2.85 )   $ (2.79 )                   Non-GAAP measures for year-over-year comparisons (1)                           Non-GAAP gross profit margin     41.9 %     39.8 %     41.1 %     40.6 % Adjusted EBITDA   $ (12,260 )   $ (13,993 )   $ (24,525 )   $ (26,258 ) Non-GAAP diluted loss per share   $ (0.11 )   $ (0.13 )   $ (0.26 )   $ (0.28 ) (1) See "Presentation of Information in this Press Release" below for a description, and the Appendix for the reconciliation of non-GAAP measurements to the most closely comparable GAAP measure. The Company also announced that it expects general and administrative (G&A) operating expenses for 2024 to be higher than original estimates, driven by external auditor fees and outside services related to the completion of the 2023 Form 10-K. These fees incurred by the Company, while transitory in nature, are expected to total over $9 million, approximately $7.5 million higher than anticipated in the original operating expense guidance provided for the full year. From a timing standpoint, the Company expects approximately 65% of these cost overruns occurred in Q1, approximately 25% in Q2, with the balance anticipated in Q3. It is important to note that, with the transition of audit responsibilities to a new firm, the Company expects a substantial improvement in operating expenses beginning in Q4. The Company plans to release its financial results for the first quarter 2024 on or about August 19, 2024 in conjunction with the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 with the SEC. In addition, the Company expects to release financial results for the second quarter 2024 during the week of August 26, 2024. Following its second quarter earnings release, the Company will host a conference call and simultaneous webcast to discuss its results for first half 2024 and outlook for the remainder of year. About 3D Systems More than 35 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction – empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials, and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems' solutions address a variety of advanced applications in healthcare and industrial markets such as medical and dental, aerospace & defense, automotive, and durable goods. More information on the Company is available at www.3DSystems.com. 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 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 many cases, forward looking statements can be identified by terms such as "believes," "belief," "expects," "may," "will," "estimates," "intends," "anticipates" or "plans" or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management's beliefs, assumptions and current expectations and 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" and "Risk Factors" in the Company's periodic filings with the SEC, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law. Presentation of Information in this Press Release 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, and Adjusted EBITDA. These non-GAAP measures exclude certain items that management does not view as part of 3D Systems' core results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide meaningful information regarding the comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems' non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated in the same manner as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items: amortization of intangible assets, a non-cash expense, as 3D Systems' intangible assets were primarily acquired in connection with business combinations; costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees; stock-based compensation expenses, a non-cash expense; charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses; certain compensation expense related to the 2021 Volumetric acquisition; and costs, including legal fees, related to significant or unusual litigation matters. Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company's revenue generation, the amortization of intangible assets does not directly relate to the sale of the company's products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company's acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company's and investors' ability to compare the company's past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business' operations. Finally, 3D Systems excludes contingent consideration recorded as compensation expense related to the 2021 Volumetric acquisition from non-GAAP measures as management evaluates financial performance excluding this expense, which is viewed by management as similar to acquisition consideration. The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share. Adjusted EBITDA, defined as net income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period. A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules. 3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margin, Adjusted EBITDA, and non-GAAP operating expense to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company's control, and as such, any associated estimate and its impact on GAAP performance could vary materially. 3D Systems CorporationUnaudited Consolidated Balance SheetsDecember 31, 2023 and December 31, 2022   (in thousands, except par value) December 31, 2023   December 31, 2022 ASSETS       Current assets:       Cash and cash equivalents $ 331,525     $ 388,134   Short-term investments   —       180,603   Accounts receivable, net of reserves — $3,389 and $3,114   101,497       93,886   Inventories   152,188       137,832   Prepaid expenses and other current assets   42,612       33,790   Total current assets   627,822       834,245   Property and equipment, net   64,461       58,072   Intangible assets, net   62,724       90,230   Goodwill   116,082       385,312   Operating lease right-of-use assets   58,406       39,502   Finance lease right-of-use assets   12,174       3,244   Long-term deferred income tax assets   4,230       7,038   Other assets   44,761       28,970   Total assets $ 990,660     $ 1,446,613   LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY       Current liabilities:       Current operating lease liabilities $ 9,924     $ 8,343   Accounts payable   49,757       53,826   Accrued and other liabilities   49,460       56,264   Customer deposits   7,599       6,911   Deferred revenue   30,448       26,464   Total current liabilities   147,188       151,808   Long-term debt, net of deferred financing costs   319,356       449,510   Long-term operating lease liabilities   56,795       38,499   Long-term deferred income tax liabilities   5,162       7,631   Other liabilities   33,400       47,461   Total liabilities   561,901       694,909   Commitments and contingencies (Note 23)       Redeemable non-controlling interest   2,006       1,760   Stockholders' equity:       Common stock, $0.001 par value, authorized 220,000 shares; shares issued 133,619 and 131,207 as of December 31, 2023 and 2022, respectively   134       131   Additional paid-in capital   1,577,519       1,547,597   Accumulated deficit   (1,106,650 )     (743,962 ) Accumulated other comprehensive loss   (44,250 )     (53,822 ) Total stockholders' equity   426,753       749,944   Total liabilities, redeemable non-controlling interest and stockholders' equity $ 990,660     $ 1,446,613   3D Systems CorporationUnaudited Consolidated Statements of OperationsYear Ended December 31, 2023, 2022 and 2021     Year Ended December 31, (in thousands, except per share amounts)   2023       2022       2021   Revenue:           Products $ 328,731     $ 395,396     $ 428,742   Services   159,338       142,635       186,897   Total revenue   488,069       538,031       615,639   Cost of sales:           Products   203,258       237,386       245,169   Services   88,390       86,412       106,692   Total cost of sales   291,648       323,798       351,861   Gross profit   196,421       214,233       263,778   Operating expenses:           Selling, general and administrative   210,172       244,181       227,697   Research and development   89,466       87,071       69,150   Impairments of goodwill and intangible assets   302,787       —       —   Total operating expenses   602,425       331,252       296,847   Loss from operations   (406,004 )     (117,019 )     (33,069 ) Interest and other income (expense), net   43,692