3D Systems Corp (DDD) 2005 Q4 法說會逐字稿

Good morning and welcome to 3D Systems Conference Call to discuss fourth quarter and full-year 2005 operating results. I am Chanda Hughes, Coordinator of Investor Relations, and with me on the call are Abe Reichental, our CEO, Fred Jones, our CFO, and Bob Grace, our General Counsel.

早安，歡迎參加 3D Systems 電話會議，討論 2005 年第四季和全年營運表現。我是投資者關係協調員 Chanda Hughes，與我一起參加電話會議的有我們的執行長 Abe Reichental、我們的財務長 Fred Jones 和我們的總法律顧問 Bob Grace。

This call can also be accessed via the 3D Systems website at www.3Dsystems.com. The audio webcast portion of this call contains a slide presentation. For those following along on the phone wishing to access the slide portion of this presentation may do so. If you choose to do so, we recommend that you sign in for the interactive teleconference. This will give you the ability to ask questions related to this conference call at the end of this session. For those that choose to access the streaming portion of the webcast, please be aware that there is a 3-second delay and you will not be able to post questions via the web.

您也可以透過 3D Systems 網站 www.3Dsystems.com 存取此電話會議。本次通話的音訊網路廣播部分包含投影片簡報。對於那些透過電話關注並希望訪問此簡報的幻燈片部分的人，可以這樣做。如果您選擇這樣做，我們建議您登入參加互動式電話會議。這將使您能夠在本次會議結束時提出與本次電話會議相關的問題。對於那些選擇存取網路廣播的串流媒體部分的人，請注意，會有 3 秒的延遲，並且您將無法透過網路發布問題。

Before we begin the discussion, I would like to preface the comments made with a statement regarding forward-looking information. Statements made in this presentation that are not statements of historical or current fact 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 our actual results, performance or achievements to be materially different from historical results or from any future results expressed or implied by such forward-looking statements.

在我們開始討論之前，我想以有關前瞻性資訊的聲明作為評論的序言。本簡報中的陳述不是歷史或當前事實的陳述，而是1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。前瞻性陳述可能涉及已知和未知的風險、不確定性和其他可能導致我們的實際結果、績效或成就與歷史結果或此類前瞻性陳述明示或暗示的任何未來結果有重大差異。

In additional to statements that explicitly describe such risks and uncertainties, you are urged to consider statements in the condition or future tenses or that include such terms as “believes,” “belief,” “expect,” “intends,” “anticipates,” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to our beliefs and expectations as to future events and trends affecting our business.

除了明確描述此類風險和不確定性的聲明外，我們還敦促您考慮條件或將來時態的聲明，或包含「相信」、「相信」、「期望」、「打算」、「預期」等術語的聲明。或“計劃”具有不確定性和前瞻性。前瞻性陳述可能包括對我們對影響我們業務的未來事件和趨勢的信念和期望的評論。

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 Company’s control. The factors stated under the heading “Forward-Looking Statements” and “Cautionary Statements and Risk Factors” in management’s discussion and analysis of results of operations and financial condition, which appear in our 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.

前瞻性陳述是基於管理層目前對未來事件和趨勢的預期，並且必然受到不確定性的影響，其中許多因素超出了公司的控制範圍。管理階層對經營績效和財務狀況的討論和分析中「前瞻性陳述」和「警示性陳述和風險因素」標題下所述的因素，這些因素出現在我們向證券交易委員會提交的定期文件以及其他文件中因素可能導致實際結果與前瞻性陳述中反映或預測的結果有重大差異。

This call is being recorded and will be available for review until one week from today. This call and presentation can also be accessed via the 3D Systems website under the Investor Relations section.

本次通話正在錄音，從今天起一週內可供審核。您也可以透過 3D Systems 網站的投資者關係部分存取本次電話會議和簡報。

At this time, I would like to introduce Abe Reichental, CEO.

這次我想介紹一下執行長Abe Reichental。

Thank you Chanda and thank you everyone and thanks for taking the time to listen to our call. This morning, as usual, I will give you an overview of our fourth quarter and full-year financial operating results for 2005 and Fred Jones, our CFO will discuss some of the financial aspects in more detail.

謝謝昌達，謝謝大家，謝謝您抽空聽我們的電話。今天早上，像往常一樣，我將向您概述 2005 年第四季和全年的財務營運結果，我們的財務長 Fred Jones 將更詳細地討論一些財務方面的問題。

We are enormously pleased to announce this morning that our revenue exceeded $44 million in the fourth quarter of 2005 representing a 15% increase over the fourth quarter of 2004 and making it the highest quarterly revenue in the history of 3D Systems.

今天早上我們非常高興地宣布，2005 年第四季我們的營收超過了 4,400 萬美元，比 2004 年第四季成長了 15%，成為 3D Systems 史上最高的季度營收。

Gross profit for the fourth quarter rose by 18% to over $20 million and operating income was relatively flat at $4.5 million primarily due to a $3.1 million increase in operating expenses to $16.4 million. The increase in operating expenses was led by $700,000 of higher R&D investments in support of our new product development and recent introductions, and $1.2 of severance and restructuring costs related to our planned relocation to Rock Hill, South Carolina. It’s worth noting that the costs associated with our relocation project were in the range we anticipated for the fourth quarter.

第四季毛利成長 18%，超過 2,000 萬美元，營業收入相對持平，為 450 萬美元，主要是由於營業費用增加了 310 萬美元，達到 1,640 萬美元。營運費用增加的主要原因是為支持我們的新產品開發和最近推出而增加的 70 萬美元研發投資，以及與我們計劃搬遷到南卡羅來納州羅克山相關的 1.2 美元遣散費和重組費用。值得注意的是，與我們的搬遷項目相關的成本在我們第四季的預期範圍內。

Net income available to common stockholders rose to $6 million or $0.32 per share on a fully diluted basis. This as affected for the fourth quarter and full year by 2 special items; the first is a $2.5 million non-cash tax benefit from the reduction and evaluation allowance for our deferred tax assets, which bolstered net income.

普通股股東可獲得的淨利潤增至 600 萬美元，即完全稀釋後每股收益 0.32 美元。第四季和全年受到 2 個特殊項目的影響；第一個是來自我們遞延稅資產的減少和評估津貼的 250 萬美元非現金稅收優惠，這增加了淨利潤。

The second is the partially offsetting $1.2 million of relocation costs that I mentioned earlier that related to our plans to move our headquarters to Rock Hill. The net effect of these 2 items accounted for $1.3 million, or $0.08 per share of the increase in net income available to common stockholders for the fourth quarter.

第二個是部分抵銷我之前提到的 120 萬美元的搬遷成本，該成本與我們將總部遷至 Rock Hill 的計劃有關。這兩項的淨效應為第四季普通股股東淨利潤增加 130 萬美元，即每股 0.08 美元。

Advancing to slide number 7, I’d like to discuss the fourth quarter revenue component changes. Higher unit volume was the main contributor to our higher revenue in the fourth quarter, particularly from new products which contributed an additional $9.5 million to revenue in the quarter. Of special note is the fact that price and mix effects accounted for another $4.4 million of the increase. At the same time, the anticipated trend of lower revenue from our Legacy systems continued, and foreign currency translations, which had contributed to revenue in 2004 were reverse direction in the fourth quarter and hurt revenue growth.

轉到第 7 張投影片，我想討論第四季營收組成部分的變化。單位銷售量的增加是我們第四季營收增加的主要原因，特別是新產品為該季度的收入貢獻了 950 萬美元的額外收入。特別值得注意的是，價格和混合效應又造成了 440 萬美元的成長。與此同時，我們的舊系統收入下降的預期趨勢仍在繼續，而在 2004 年為收入做出貢獻的外幣換算在第四季度出現了逆轉，損害了收入增長。

On slide number 8, you can see that the United States and Asia Pacific regions contributed to our higher level of revenue in the fourth quarter. Notwithstanding the sluggish European economy, our European revenue was disappointing. Higher unit volume and favorable price and mix effect were the principal drivers of higher revenue on a geographic basis as well.

在第 8 張投影片上，您可以看到美國和亞太地區為我們第四季度更高的收入水平做出了貢獻。儘管歐洲經濟低迷，我們歐洲的收入卻令人失望。較高的單位銷售量、有利的價格和混合效應也是按地域劃分收入增加的主要驅動力。

For the fourth quarter, revenue from our U.S. operations increased by $7.6 million, or 53% to $21.8 million. The increase in the U.S. revenue continues to demonstrate the benefits of the 2004 restructuring of our U.S. sales organization. Revenue from Asia Pacific operations continued its upward trend increasing by $1 million, or 13.5 percentage points to $8.4 million for the quarter.

第四季度，我們美國業務的收入增加了 760 萬美元，即 53%，達到 2,180 萬美元。美國收入的成長繼續證明了 2004 年美國銷售組織重組的好處。亞太業務收入持續維持上升趨勢，本季增加 100 萬美元，即 13.5 個百分點，達到 840 萬美元。

However, the favorable performance of our Asia Pacific operations was largely offset by lower revenue from our European operations which decreased by $2.7 million or 16.5% to $13.9 million. This decrease was due primarily to a $4.5 million lower unit volume and the adverse effect of foreign currency translation, partially offset by $1.7 million from the favorable combined effect of price and mix. Higher unit volume and favorable price and mix effects were also the principal drivers of our higher revenue on a product line basis.

然而，我們亞太業務的良好表現在很大程度上被歐洲業務收入的下降所抵消，歐洲業務收入減少了 270 萬美元，即 16.5%，至 1,390 萬美元。這一減少主要是由於單位銷售減少了 450 萬美元以及外幣換算的不利影響，但價格和產品組合的有利綜合效應部分抵消了 170 萬美元。更高的單位銷售量以及有利的價格和混合效應也是我們產品線收入增加的主要驅動力。

Sales of systems, materials, and services all benefited from strong unit growth from new systems, materials, and services that we have introduced since the latter part of 2003. For the first quarter of 2005, revenue from systems and other products increased 41% over the fourth quarter of 2004 and revenue from materials increased by 11%. Revenue from services decreased by 15% to $9.7 million for the quarter reflecting the effects of our planned discontinuation of upgrade sales to certain Legacy systems and the unfavorable effect of foreign currency translation.

系統、材料和服務的銷售都受益於我們自2003 年下半年以來推出的新系統、材料和服務的強勁單位增長。2005 年第一季度，系統和其他產品的收入比上年同期增長了41% 。2004年第四季 來自材料的收入成長了11%。本季服務收入下降 15% 至 970 萬美元，反映出我們計劃停止對某些舊系統的升級銷售以及外幣換算的不利影響。

For the full year 2005, revenue rose 11% to a new record of $139.7 million. Gross profit rose by 13% to $63.1million and operating income rose 67% to $9.3 million. Operating expenses for the year increased by $3.3 million or 6.5% to $58.8 million due to higher research and development investments and the restructuring and severance costs related to our relocation to Rock Hill, which I already mentioned in connection with fourth quarter results.

2005 年全年營收成長了 11%，達到 1.397 億美元的新紀錄。毛利成長 13%，達到 6,310 萬美元，營業收入成長 67%，達到 930 萬美元。由於研發投資增加以及與我們搬遷到 Rock Hill 相關的重組和遣散費用（我已經在第四季度業績中提到過），本年度營運費用增加了 330 萬美元或 6.5%，達到 5,880 萬美元。

Our research and development investments for the full year rose by $1.7 million and together with the $1.2 million of Rock Hill severance and restructuring costs, it accounted for most of the annual increase in operating expenses. It is worth noting that selling, general, and administrative expenses increased by only $1 million in 2005 reflecting the higher sales and marketing costs resulting from higher revenue and the absence in 2005 of a $1.5 million of the benefit of further reductions for healthcare costs and bad debts in 2004.

我們全年的研發投資增加了 170 萬美元，加上 Rock Hill 的 120 萬美元遣散費和重組費用，佔了年度營運費用成長的大部分。值得注意的是，2005 年銷售、一般和管理費用僅增加了100 萬美元，反映出收入增加導致銷售和行銷成本增加，以及2005 年醫療費用和不良費用進一步減少所帶來的150 萬美元的收益缺失。2004 年的債務。

Operating expenses continued to decline in 2005 as a percentage of revenue amounting to 38.5% of revenue in 2005 compared to the 40.3% of revenue in 2004, a favorable trend in line with our longer term goal to reduce our operating expenses to the range of between 30% to 35% of revenue as our business grows. Net income available for common stockholders rose to $8.4 million in 2005 or $0.53 per share fully diluted over 2004’s net income of $1 million or $0.07 per share.

2005 年，營業費用佔收入的比例持續下降，2005 年佔收入的比例為 38.5%，而 2004 年佔收入的 40.3%，這一有利趨勢符合我們將營業費用減少到以下範圍的長期目標：隨著我們業務的成長，營收的30% 到35%。 2005 年，普通股股東的淨利潤增加至 840 萬美元，即每股完全稀釋後的 0.53 美元，而 2004 年的淨利潤為 100 萬美元，即每股 0.07 美元。

The net effect of the $2.5 million non-cash tax benefit that I mentioned earlier and the partially offsetting $1.2 million of Rock Hill relocation costs accounted for $1.3 million, or $0.08 per share of the increase in the net income available to common stockholders for the full year.

我之前提到的 250 萬美元非現金稅收優惠和部分抵消 120 萬美元 Rock Hill 搬遷成本的淨效應佔 130 萬美元，即普通股股東可獲得的淨收入增加的每股 0.08 美元。年。

Moving on to slide number 10, as was the case for the fourth quarter of 2005, revenue growth for the full year was led by higher unit volume of sales of new products and favorable price and mix effects and the unit volume from our core Legacy products continued it planned decline.

繼續看第 10 張投影片，與 2005 年第四季的情況一樣，全年收入的增長是由新產品單位銷量的增加、有利的價格和混合效應以及我們核心傳統產品的單位銷量帶動的。繼續按計劃下跌。

Foreign currency translations which added $5.8 million to consolidated revenue in 2004 had a $1.2 million adverse effect on consolidated revenue in 2005 as the U.S. dollar strengthened against the foreign currencies in which we transact business.

外幣折算使 2004 年的合併收入增加了 580 萬美元，但由於美元兌我們開展業務所用的外幣走強，對 2005 年的合併收入產生了 120 萬美元的不利影響。

Consistent with our fourth quarter regional performance for the full year, the United States and Asia Pacific regions were the principal contributors to our higher level of revenue in 2005. European revenue decreased modestly. Revenue from U.S. operations increased by $14 million, or 26.9%, to $66 million for 2005, from $52 million for 2004. Revenue from U.S. operations rose to 47.3% of consolidated revenue for 2005 from 41.5% of consolidated revenue for 2004 reflecting our strong growth in the U.S.

與我們全年第四季度的地區業績一致，美國和亞太地區是我們 2005 年收入水平較高的主要貢獻者。歐洲收入略有下降。美國業務的收入從2004 年的5,200 萬美元增加到2005 年的6,600 萬美元，增幅為1,400 萬美元，即26.9%。美國業務的收入佔合併收入的比例從2004 年的41.5% 上升到2005 年的47.3%，這反映了我們的強勁成長在美國。

Revenue from operations outside the U.S. was essentially flat at $73.7 million for 2005 compared to $73.4 million for 2004, but it decreased to 52.7% of consolidated revenue for 2005 from 58.5% of consolidated revenue in 2004, reflecting the effect of the higher revenue growth in the U.S. and the unfavorable effect of foreign currency translation.

2005 年美國以外業務的收入基本持平，為7,370 萬美元，而2004 年為7,340 萬美元，但佔2005 年綜合收入的比例從2004 年的58.5% 下降到52.7%較高，反映了2005 年收入增長的影響。美國和外幣換算的不利影響。

Revenue from Asia Pacific operations continued its upward, increasing by $2 million, or 9.8%, to $23 million for 2005, up from $20.9 for 2004. The favorable performance from our Asia Pacific operations was largely offset by a disappointing lower revenue from our European operations, which decreased by $1.8 million, or 3.3% to $50.7 million for 2005 from $52.4 million for 2004. The decrease was due primarily to $3.5 million of lower unit volume and the adverse effect of foreign currency translation partially offset by $1.7 million from the favorable combined effect of price and mix. Higher unit volume and favorable price and mix effects were also the principal drivers of our higher revenue on the product line basis.

亞太業務的收入持續上升，從2004 年的20.9 美元增至2005 年的2005 年200 萬美元，即9.8%。我們亞太業務的良好業績在很大程度上被歐洲業務收入的令人失望的下降所抵銷。減少了180 萬美元，即3.3%，從2004 年的5,240 萬美元降至2005 年的5,070 萬美元。減少的主要原因是單位數量減少了350 萬美元，以及外幣折算的不利影響被有利合併額中的170 萬美元部分抵銷。價格和組合的影響。更高的單位銷售量以及有利的價格和混合效應也是我們產品線收入增加的主要驅動力。

Sales of systems, materials, and services all benefited from strong unit growth from new systems, materials, and systems that we have introduced since the latter part of 2003. Revenue from systems and other products in creased 21.2% in 2005 compared with 2004 and the revenue from materials increased by 17.5% in 2005 compared to 2004. Revenue from services decreased 5.1% to $39.4 million for 2005 from $41.4 million for 2004. The decrease in the revenue from services was principally due to a net $2.1 million decline in unit volume of our core services as a result of our previously-announced plan to discontinue selling certain upgrade packages in support of Legacy systems and reflecting increased reliability and longevity of certain laser assemblies.

系統、材料和服務的銷售均受益於我們自 2003 年下半年以來推出的新系統、材料和系統的強勁單位增長。2005 年系統和其他產品的收入比 2004 年增長了 21.2%，與2004 年相比，2005 年材料收入成長了17.5%。服務收入從2004 年的4,140 萬美元下降到2005 年的3,940 萬美元，下降了5.1%。服務收入的減少主要是由於材料單位數量淨減少了210 萬美元。我們的核心服務是由於我們之前宣布的計劃停止銷售某些升級包以支援舊系統，並反映出某些雷射組件的可靠性和壽命的提高。

Moving on to slide number 12, as we shared with you on many occasions in the past, we firmly believe that the only sure way for us to achieve and maintain marketplace leadership is through technology leadership. And towards that end throughout 2005, we accelerated the pace of new product introductions and commercialized 12 new products and services. We are gratified that sales of new products and services introduced since the latter part of 2003 grew to $38.9 million, or 27.8% of total revenue in 2005, up from $16.1 million or only 12.9% of total revenue in 2004.

繼續看第 12 張投影片，正如我們過去多次與您分享的那樣，我們堅信，我們實現並保持市場領先地位的唯一可靠方法是透過技術領先。為此，2005 年我們加快了新產品推出的步伐，並將 12 種新產品和服務商業化。我們感到高興的是，自2003 年下半年以來推出的新產品和服務的銷售額從2004 年的1,610 萬美元（僅佔總收入的12.9%）增至3,890 萬美元，佔2005 年總收入的27.8 %。

Although we are very pleased with the improvement in our operating profile and the steady progress we have made over the past 3 years, we are not ready to declare victory and celebrate; rather we believe that we have additional significant opportunities to refine our business model and further improve our performance and the results.

儘管我們對過去三年來經營狀況的改善和穩步進步感到非常高興，但我們還沒有準備好宣布勝利並慶祝；相反，我們相信我們還有更多重要機會來完善我們的業務模式並進一步提高我們的業績和業績。

While operating expenses continued to decline in 2005 as a percentage of revenue in spite of the $1.7 million increase in research and development expenses and $1.2 million of special costs in connection with our plans to relocate our headquarters and R&D facilities to Rock Hill, South Carolina, we do think a few things are worthy of comment. First, we are still working to improve SG&A expenses on an absolute basis. Second, in 2006 we expect to incur between $6.4 million and $8.1 million of expenses related to our Rock Hill relocation which will undoubtedly lead to higher operating expenses in 2006; and third, going forward for 2007 our first full year of operation in Rock Hill, we expect to realize annual operating cost savings in the range of $2.5 million based on our 2005 level of operating expenses, as well as higher gross profit margins from the elimination of unabsorbed overhead from our Grand Junction facility.

儘管我們計劃將總部和研發設施遷至南卡羅來納州羅克山，研發費用增加了 170 萬美元，特別費用增加了 120 萬美元，但 2005 年營運費用佔收入的百分比繼續下降，我們確實認為有一些事情值得評論。首先，我們仍在努力在絕對基礎上改善銷售、管理和行政費用。其次，2006 年我們預計將產生 640 萬至 810 萬美元與 Rock Hill 搬遷相關的費用，這無疑會導致 2006 年營運費用增加；第三，展望 2007 年我們在 Rock Hill 的第一個全年運營，根據我們 2005 年的運營費用水平，我們預計每年將實現 250 萬美元的運營成本節省，並且由於消除我們的大章克申工廠未吸收的開銷。

Gross profit margin rose modestly in both the fourth quarter and the full year 2005 benefiting from higher product margins that were only partially offset by the lower margins we derived from our services. Profit margins benefited from higher unit sales in new systems and materials, lower costs of our outsourcing activities, and favorable price/mix effects. It should be noted that we did not realize the full benefit of those improvements because of unabsorbed manufacturing overhead arising from our outsourcing activities, additional costs associated with rollout of 2 major new systems in 2005, certain tactical marketing initiatives to capture material revenue from Legacy systems, and adverse foreign exchange transaction effect.

2005 年第四季和全年的毛利率均略有上升，這得益於產品利潤率的提高，但我們的服務利潤率的下降僅部分抵消了產品利潤率的提高。利潤率受益於新系統和材料單位銷售的增加、外包活動成本的降低以及有利的價格/組合效應。應該指出的是，我們沒有意識到這些改進的全部好處，因為我們的外包活動產生了未吸收的製造費用，與2005 年推出兩個主要新系統相關的額外成本，以及從舊系統中獲取物質收入的某些戰術行銷舉措，以及不利的外匯交易影響。

While we are disappointed with the absence of a more noticeable improvement in profit margins in 2005, the factors that adversely affected them resulted primarily from deliberate strategic decisions that we had made for long-term gain and we expect to see additional margin improvement going forward.

雖然我們對 2005 年利潤率沒有出現更明顯的改善感到失望，但對利潤率產生不利影響的因素主要是由於我們為長期收益而做出的深思熟慮的戰略決策，我們預計未來利潤率將進一步改善。

I would like to move on to slide 14 and spend a couple of moments talking about our employee productivity. As you know, we firmly believe that our success depends heavily on the skill and motivation of our fellow employees, and that we must, therefore invest in the skills that our employees possess and those additional tools that we need to accomplish our strategic initiative. Reflecting on our organizational development success and the level of execution against our key strategic initiatives, it is particularly gratifying that increasing productivity of our employees as measured by revenue per employee, which has been increasing at a rate of close to 20% per year since 2003 and up to a record of $397,000 of revenue per employee in 2005.

我想繼續看投影片 14，花一些時間談論我們的員工生產力。如您所知，我們堅信，我們的成功在很大程度上取決於員工的技能和積極性，因此我們必須投資於員工擁有的技能以及完成策略計劃所需的其他工具。回顧我們的組織發展成功和關鍵策略舉措的執行水平，特別令人欣慰的是，以每名員工的收入衡量，我們員工的生產力不斷提高，自 2003 年以來每年以接近 20% 的速度增長2005 年，每位員工的收入達到創紀錄的397,000 美元。

I’d like to switch gears and give you an update on a couple of our key growth initiatives starting on slide 15 with a 3D printing update. Revenue from our growing 3D printing business exceeded $16 million in 2005 reflecting our continued success in expanding our portfolio of 3D printing products and applications. We also enjoyed success in 2005 in building our InVision reseller channel, which more than doubled and is now more than 70 branches strong. Earlier this week, we announced the introduction of the InVision Dental Pro which is designed to quickly and efficiently produce castable wax-ups for molds and bridges from scans and designs done directly in the dental lab. The system converts digital input data into castable wax-up shapes using a proprietary material designed specifically for dental molding applications.

我想換個話題，向您介紹我們的幾個關鍵成長計畫的最新情況，從投影片 15 開始，其中包括 3D 列印更新。 2005 年，我們不斷成長的 3D 列印業務收入超過 1,600 萬美元，這反映出我們在擴展 3D 列印產品和應用組合方面不斷取得成功。 2005 年，我們還成功建立了 InVision 經銷商通路，該通路增加了一倍以上，目前擁有 70 多個分店。本週早些時候，我們宣布推出 InVision Dental Pro，該產品旨在透過直接在牙科實驗室完成的掃描和設計快速高效地生產用於模具和牙橋的可澆注蠟型。該系統使用專為牙科成型應用設計的專有材料，將數位輸入資料轉換為可鑄造蠟型。

And just yesterday we announced that as part of our longer term 3D printing portfolio requisitioning and extension plan, we plan to offer our Palm pack desktop InVision LD 3D printer at the affordable price of $14,900. The InVision LD is the industry’s 3D printer at this point to be priced below the $15,000 mark, making it the most affordable 3D printer in its class and accessible to a broader audience of engineers, marketers, and students worldwide. We are enormously to be the first to deliver a truly affordable 3D printing solution to our customers, one that we no doubt will go a long way toward controlling our customers’ bottom line. Our new price point, combined with our recently-announced InVision LD 30% speed enhancement, offers even more productive and cost effective desktop 3D printer for the earliest stages of product design, enabling more and more designers, engineers, and marketers to build more parts faster.

就在昨天，我們宣布，作為我們長期 3D 列印產品組合申請和擴展計劃的一部分，我們計劃以 14,900 美元的實惠價格提供 Palm pack 桌上型 InVision LD 3D 列印機。 InVision LD 是業界目前價格低於 15,000 美元的 3D 列印機，使其成為同類產品中最實惠的 3D 列印機，可供全球更廣泛的工程師、行銷人員和學生使用。我們是第一個為客戶提供真正實惠的 3D 列印解決方案的公司，毫無疑問，我們將在控制客戶利潤方面大有幫助。我們的新價格點與我們最近宣布的InVision LD 30% 速度增強相結合，為產品設計的最初階段提供了更俱生產力和成本效益的桌面3D 列印機，使越來越多的設計師、工程師和行銷人員能夠製造更多零件快點。

With this well-placed positioning of our InVision LD printer, we continue to enhance and broaden our portfolio with affordable and efficient 3D printers, which already include the InVision SR and the InVision HR 3D printers, as well as our recently-announced InVision DP Dental Systems. We are continuing to develop additional 3D printers with increased functionality, affordable price points, and attractive value proposition to make and exceed the needs of our growing customer base.

憑藉 InVision LD 列印機的良好定位，我們繼續增強和擴大我們的產品組合，推出經濟實惠且高效的 3D 列印機，其中包括 InVision SR 和 InVision HR 3D 列印機，以及我們最近推出的 InVision DP Dental系統。我們正在繼續開發更多的 3D 列印機，這些列印機具有更多的功能、實惠的價格和有吸引力的價值主張，以滿足並超越我們不斷增長的客戶群的需求。

Moving on to our second key growth initiative, rapid manufacturing, I’d like to update you on that as well. Rapid manufacturing applications accounted for approximately half of our new system installations in 2005, which was largely fueled by the introduction of our new from the ground up fully automated and faster Viper Pro SLA systems and Sinterstation Pro SLS systems, and our rapidly expanding portfolio of engineered materials and composites.

接下來是我們的第二個關鍵成長計劃，即快速製造，我也想向您通報最新情況。 2005 年，快速製造應用約占我們新系統安裝量的一半，這在很大程度上得益於我們從頭開始引入全新的全自動、速度更快的Viper Pro SLA 系統和Sinterstation Pro SLS 系統，以及我們快速擴展的工程產品組合。材料和複合材料。

We were also successful in 2005 in growing the range of customers and applications for our systems solutions into additional aerospace, automotive, manufacturing, and health-related applications.

2005 年，我們也成功地將系統解決方案的客戶和應用擴展到其他航空航太、汽車、製造和健康相關應用。

Those of you with access to the webcast slides can see on slide 17 a pictorial depiction of the remarkable transformation of our product line over the past 2 years. Focusing on our objective of developing 3D printing and rapid manufacturing applications, we substantially revamped our entire product line to provide a broader range of system solutions for our customers. We also stretched our price and value continuum from a low of $15,000 to a high of $850,000 per system, offering a multitude of performance and price choices to a growing base of customers who are looking to confirm the way they design develop and manufacture new products.

能夠存取網路廣播幻燈片的人可以在幻燈片 17 上看到我們產品線在過去兩年中發生的顯著轉變的圖片描述。圍繞著開發3D列印和快速製造應用的目標，我們對整個產品線進行了大幅改造，為客戶提供更廣泛的系統解決方案。我們還將每個系統的價格和價值範圍從低至 15,000 美元延伸至高至 850,000 美元，為越來越多希望確認其設計、開發和製造新產品方式的客戶提供多種性能和價格選擇。

And you can clearly see on slide number 18 that we also made good on our stated objectives of developing proprietary material packaging and delivery cartridges for all of our new systems and have done so by packaging significant additional functionality uptime, and built-in quality management systems into this family of smart material cartridges.

您可以在第18 號投影片上清楚地看到，我們還實現了為所有新系統開發專有材料包裝和輸送盒的既定目標，並透過包裝重要的附加功能正常運行時間和內建品質管理系統來實現這一目標進入這個智慧材質墨盒系列。

It’s interesting to note that as we complete the transformation of our business model and portfolio, we are experiencing some changes in marketplace behavior. Specifically, as we mentioned in connection with our third quarter results, historically backlog has not been a significant factor in our business, reflecting our relatively short selection and delivery lead times. However, as was the case at the end of the third quarter of 2005, at the end of the year we had approximately $6.8 million of [booth] orders outstanding, primarily for systems for rapid manufacturing applications all of which we expect to ship in 2006. While 2 quarters do not constitute a trend, we believe that this strong finish provided us with strong momentum as we began the New Year.

有趣的是，隨著我們完成業務模式和產品組合的轉型，我們正在經歷市場行為的一些變化。具體來說，正如我們在第三季業績中提到的，歷史上積壓並不是我們業務的重要因素，反映出我們的選擇和交付週期相對較短。然而，與 2005 年第三季末的情況一樣，到年底我們還有大約 680 萬美元的未完成訂單，主要用於快速製造應用的系統，我們預計所有這些系統都將在 2006 年發貨雖然兩個季度並不構成趨勢，但我們相信，這種強勁的結束為我們新年伊始提供了強勁的動力。

This slide, I’d like to take a few moments and update you on certain key developments. First, as you all know in the course of the fourth quarter, we commenced shipments from the ground up Viper Pro SLA systems. As a result of this significant development, we decided to cease offering new SLA 5000 and 7000 systems are shipped, this Legacy model will not be available for sale.

在這張投影片中，我想花一些時間向您介紹某些關鍵進展的最新情況。首先，眾所周知，我們在第四季開始從頭開始出貨 Viper Pro SLA 系統。由於這一重大發展，我們決定停止提供新的 SLA 5000 和 7000 系統，該舊型號將不再銷售。

During the fourth quarter, we also entered into an agreement to settle a patent dispute with DSM in exchange for a comprehensive cross license on favorable terms to us. And we continue to refine our service strategy by 1) deliberately discontinuing sales of upgrades for certain Legacy systems; 2) beginning to transition 3D printing field service activities to our growing network of resellers; 3) implementing certain continuous improvement initiatives that resulted in longer-lasting lasers; and 4) commencing the transition and outsourcing of all training activities to York Technical College in connection with the establishment of our 3D Systems University. In fact, we expect York Technical College to begin offering training courses on our behalf by the middle of March and speaking of York Tech, let’s quickly review the progress we are making on our relocation project.

在第四季度，我們也與帝斯曼達成了一項解決專利糾紛的協議，以換取對我們有利的全面交叉授權。我們繼續透過以下方式完善我們的服務策略：1）故意停止銷售某些舊系統的升級版； 2) 開始將 3D 列印現場服務活動轉移給我們不斷成長的經銷商網路； 3) 實施某些持續改善舉措，以實現更持久的雷射； 4) 隨著 3D Systems 大學的建立，開始將所有培訓活動過渡並外包給約克技術學院。事實上，我們預計約克技術學院將在三月中旬開始代表我們提供培訓課程，說到約克技術學院，讓我們快速回顧一下我們在搬遷計畫上所取得的進展。

I’m very pleased to s hare with you this morning that our previously-announced relocation project is moving forward smoothly and efficiently. Early in January, we opened a 12,000 square foot interim facility in Rock Hill, and we have begun an orderly departmental transition of our customer service and call center operations to Rock Hill. In fact, as we speak, over 30 of our fellow employees already operate full-time out of our interim Rock Hill facility and of special note is our success in engaging all of our key engineering and marketing employees to join us in Rock Hill.

今天早上我很高興與大家分享，我們之前宣布的搬遷專案正在順利、有效率地推進。一月初，我們在 Rock Hill 開設了一個 12,000 平方英尺的臨時設施，並開始將客戶服務和呼叫中心業務有序地轉移到 Rock Hill。事實上，正如我們所說，我們的 30 多名同事已經在我們的臨時 Rock Hill 工廠全職工作，特別值得注意的是，我們成功吸引了所有關鍵工程和行銷員工加入我們在 Rock Hill 的工作。

Earlier this week, we held a groundbreaking ceremony on the Rock Hill site and had the opportunity to thank our whole community, county, and state officials for their superb hospitality and outstanding support to date. And to build on our organizational development, this Saturday we plan to be holding a job fair in Rock Hill to recruit additional talented employees into our team.

本週早些時候，我們在 Rock Hill 場地舉行了奠基儀式，並有機會感謝整個社區、縣和州官員迄今為止的熱情款待和傑出支持。為了加強我們的組織發展，本週六我們計劃在 Rock Hill 舉辦招聘會，招募更多有才華的員工加入我們的團隊。

Early in February, we signed the lease and commenced construction on our new state-of-the-art facility headquarters and R&D facility, and as to our previously-announced plan, we expect to complete and occupy this facility around September of this year. We are currently working on the disposition of our Grand Junction and Valencia facilities and we will continue to keep you posted on any significant developments.

2月初，我們簽署了租約並開始建造我們最先進的新設施總部和研發設施，根據我們先前宣布的計劃，我們預計將在今年9月左右完成併入住該設施。我們目前正在處理大章克申和巴倫西亞設施的處置，我們將繼續向您通報任何重大進展。

We are also pleased to report that we have successfully completed the relocation and re-startup of our 3D printing material blending plant on time and on budget, relocating it from Grand Junction to Marly, Switzerland.

我們也很高興地報告，我們已按時、按預算成功完成了 3D 列印材料混合工廠的搬遷和重新啟動，將其從大章克申遷至瑞士馬爾利。

And finally, as a result of our progress and experience today, we felt that it is prudent to lower our 2006 cost estimate to complete this project down to the range of $6.4 million to $8.1 million from the previously-announced range of $7 million to $8.7 million that we shared with you earlier.

最後，根據我們今天的進展和經驗，我們認為謹慎的做法是，將 2006 年完成該專案的成本估算從先前宣布的 700 萬美元到 8.7 美元降低到 640 萬美元到 810 萬美元。我們之前與您分享的百萬美元。

Now I’d like to turn the presentation over to Fred Jones, our Chief Financial Officer for an in-depth review of our financial results and analysis. Fred?

現在我想將簡報交給我們的財務長 Fred Jones，以深入審查我們的財務表現和分析。弗雷德？

Thanks Abe. Earlier today we filed our Form 10-K with the SEC, which of course is accessible through the SEC’s website, and that filing included management’s assessment that our controls on financial reporting are effective as of December 31, 2005 and they contain our independent auditor’s attestation of management’s findings and their independent valuation in conclusion that our controls over financial reporting are effective as of the end of last year.

謝謝阿部。今天早些時候，我們向SEC 提交了10-K 表格，當然可以透過SEC 網站存取該表格，該文件包括管理層的評估，即我們對財務報告的控制截至2005 年12 月31 日有效，並且包含我們的獨立審計師的證明管理層的調查結果及其獨立評估得出的結論是，我們對財務報告的控制截至去年年底是有效的。

With respect to the fourth quarter and the full year, our webcast participants can see a bar chart comparing quarterly revenue with the previous year’s quarters. The fourth quarter of 2005 represented the ninth consecutive quarter of year-over-year increases following 5 down quarters. The fourth quarter’s record revenue of $44.1 million was 15% above the prior year’s fourth quarter, which itself was a record quarter. The fourth quarter revenue increased by $5.8 million despite $2.2 million of adverse foreign currency translation effects, and for the second quarter in a row, we were left with significant backlog at quarter end, some $6.8 million predominantly for customer stipulated deliveries in the first quarter of 2006.

對於第四季度和全年，我們的網路直播參與者可以看到一個長條圖，將季度收入與上一年的季度進行比較。 2005 年第四季是繼五個季度下降之後連續第九個季度實現同比增長。第四季創紀錄的營收為 4,410 萬美元，比去年第四季成長 15%，去年第四季本身就是創紀錄的季度。儘管有220 萬美元的不利外幣換算影響，第四季度收入仍增長了580 萬美元，並且連續第二個季度，我們在季度末仍有大量積壓訂單，其中約680 萬美元主要用於客戶規定的第一季交貨。2006 年。

Gross profit margins also increased in the quarter. The fourth quarter’s gross margin increased 1.2 percentage points over the prior year’s quarter. This was led by a 3.5 percentage point increase in product margins for the quarter because of efficiencies associated with higher volume, continuing benefits associated with our outsourcing activities, and favorable price mix changes. The improvement was partially offset by adverse foreign exchange transaction effects.

該季度的毛利率也有所上升。第四季毛利率較去年同期成長1.2個百分點。這是由於本季產品利潤率成長了 3.5 個百分點，這是由於產量增加帶來的效率、與我們的外包活動相關的持續收益以及有利的價格組合變化。這項改善被不利的外匯交易影響部分抵銷。

Service margins declined due to volume decreases, primarily from fewer upgrades on older Legacy systems and increased spending associated with new products.

由於銷售量下降，服務利潤率下降，這主要是由於舊舊系統的升級減少以及與新產品相關的支出增加。

The total operating expenses in the fourth quarter increased 23% from the prior year’s fourth quarter. There were several significant moving parts in the operating expenses. SG&A increased to 13%, predominantly from the absence in the 2005 period of a benefit in the fourth quarter of ’04 in reductions in accruals for bad debts, an increase in bonus and commissions due to higher revenue and operating profit, and an increase in legal fees in the fourth quarter associated with patent litigation matters.

第四季總營運費用較去年第四季成長23%。營運費用中有幾個重要的變動部分。 SG&A 增加至 13%，主要是由於 2005 年期間沒有受益，2004 年第四季應計壞帳減少，由於收入和營業利潤增加而導致獎金和佣金增加，以及第四季度與專利訴訟事宜相關的法律費用。

Our R&D investments, which of course are recorded expenses, grew some 24% in the fourth quarter to $3.4 million reflecting the accelerated pace of new product introduction. For the year, we invested 8.7% of revenue on R&D, and we also incurred $1.2 million in restructuring costs in connection with our relocation initiative.

我們的研發投資（當然已記錄為支出）在第四季度成長了約 24% 至 340 萬美元，反映出新產品推出步伐的加快。今年，我們將 8.7% 的收入投入研發，也因搬遷計畫而產生了 120 萬美元的重組成本。

For the entire year, operating expenses increased $3.3 million, or 7% but declined as a percentage of revenue to 38.5%, and as this graph illustrates, the largest monetary and percentage changes arose from increased R&D spending which grew 16% to $12.2 million. The $1 million increase in SG&A resulted from the absence in ’05 of the benefits realized in ’04 from reductions and accruals for healthcare costs, bad debt allowances, and environmental reserves. Increases in bonus and commission costs, marketing costs relating to new products and SOX-related accounting fees, and those were partially offset by $2.8 million reduction in legal costs for the year as a result of our settlement in 2004 of a number of Legacy legal matters.

全年營運支出增加了330 萬美元，即7%，但佔收入的百分比下降至38.5%，如圖所示，最大的貨幣和百分比變化來自於研發支出的增加，該支出增長了16%，達到1220 萬美元。 SG&A 增加了 100 萬美元，因為 05 年缺少 04 年透過減少和應計醫療費用、壞帳準備金和環境儲備而實現的效益。獎金和佣金成本、與新產品相關的行銷成本以及與 SOX 相關的會計費用的增加，以及由於我們在 2004 年解決了一些遺留法律問題而導致本年度法律成本減少 280 萬美元，部分抵消了這些增加。

We also recorded $1.2 million of expenses for our headquarters relocation, which was slightly below the $1.3 million we had forecast for 2005.

我們還記錄了 120 萬美元的總部搬遷費用，略低於我們 2005 年預測的 130 萬美元。

Interest and other expense aggregated a nominal amount in 2005’s fourth quarter as interest expense was lower as a result of a conversion of our 7% debentures near the end of 2004 from higher interest income because of higher interest rates, and from a $0.3 million gain on the sale of assets.

2005 年第四季的利息和其他費用合計為名義金額，因為我們的7% 債券在2004 年底轉換為利率較高的利息收入，並且從2005 年第四季的30 萬美元收益中轉換，因此利息費用較低。出售資產。

Income taxes on balance represented a benefit in both the fourth quarter and the year as we recognized a $2.5 million benefit in the fourth quarter from the reduction of our valuation allowance on our deferred tax assets. This reduction was triggered by our assessment that in accordance with FAS-109, it is more likely than not that we will be able to realize a portion of that deferred tax asset in the next few quarters to offset U.S. Federal Income Tax Liability. That allowance was originally booked in 2002 when there was uncertainty regarding our future profitability, and consequently our ability to utilize our net operating loss carry-forwards. But once that allowance is booked, the accounting literature dictates a very conservative approach toward reversal of it. So if we continue to generate U.S. taxable income, we will likely reverse additional amounts in future periods.

總的來說，所得稅在第四季度和今年都帶來了好處，因為我們在第四季度確認了遞延稅資產估值備抵減少帶來的 250 萬美元的好處。這一減少是由我們的評估引發的，即根據 FAS-109，我們很有可能在未來幾季內變現部分遞延稅資產，以抵銷美國聯邦所得稅負債。該備抵最初於 2002 年計入，當時我們的未來獲利能力存在不確定性，因此我們利用淨營業虧損結轉的能力也存在不確定性。但一旦記入了該津貼，會計文獻就規定了一種非常保守的方法來沖銷它。因此，如果我們繼續產生美國應稅收入，我們可能會在未來期間沖銷額外金額。

The tax benefit for the year is $1.5 million and consists of $1 million of tax provisions for current operations, predominantly for those outside the U.S., and a $2.5 million tax benefit from the reduction in the valuation allowance on our deferred tax assets. As it becomes more apparent that additional tax liability will arise in future periods to utilize our deferred tax assets, then we expect the allowance to be reduced further. And those further reductions will generate additional tax benefits. Globally, we have $34.1 million of deferred tax assets, almost $30 million of which is in the United States, and once a deferred tax asset is exhausted in a particular tax jurisdiction, then we will commence paying income taxes in that jurisdiction. But as you can imagine, it will be a few years before we will need to write a check for U.S. Federal Income Tax Liability.

今年的稅收優惠為 150 萬美元，其中包括針對當前業務（主要針對美國境外的業務）的 100 萬美元稅收撥備，以及遞延稅資產估值備抵減少帶來的 250 萬美元稅收優惠。由於未來期間利用我們的遞延所得稅資產將產生額外的稅務義務變得更加明顯，因此我們預計準備金將進一步減少。這些進一步的削減將產生額外的稅收優惠。在全球範圍內，我們擁有 3,410 萬美元的遞延稅資產，其中近 3,000 萬美元位於美國，一旦某個特定稅務管轄區的遞延稅資產用完，我們將開始在該管轄區繳納所得稅。但正如您可以想像的那樣，幾年後我們才需要為美國聯邦所得稅責任開支票。

Slide 28 merely illustrates the computation of the diluted number of shares for the fourth quarter, showing that both of our comparable securities were diluted as the higher earnings level obtained in Q4 adding almost 5 million shares to the diluted EPS computations.

投影片28 僅說明了第四季度稀釋後股票數量的計算，顯示我們的兩種可比較證券都被稀釋，因為第四季度獲得了更高的收益水平，在稀釋後每股收益計算中增加了近500 萬股。

In contrast to the fourth quarter, the earnings level for the entire year was not sufficiently high to cause our convertible securities to have the diluted effect on earnings. Consequently, diluted shares for the entire year were 16 million, bumped up from the basic number of shares solely from outstanding stock options.

與第四季相比，全年的獲利水準還沒有高到足以導致我們的可轉換證券對獲利產生攤薄效應。因此，全年稀釋後的股票數量為 1,600 萬股，僅因發行在外的股票選擇權而高於基本股數。

On slide 30, we wanted to keep, or to help you quantify the magnitude of the impact on our earnings from the 2 special items during the quarter. The fourth quarter’s $1.2 million of costs related to the relocation of our headquarters had a negative impact of $0.06 per diluted share for the quarter and $0.07 for the year. This was more than offset by the increase in diluted EPS arising from the reduction in our valuation allowance for our deferred tax assets and $0.12 and $0.16 per share for the quarter and for the year respectively. Adding these 2 offsetting impacts together results in a positive $0.06 for the quarter, and the, as you can see, the underlying earnings level without those 2 items compares favorably with last year’s $0.20 per share.

在投影片 30 上，我們希望保留或協助您量化本季 2 個特殊項目對我們收入的影響程度。第四季與總部搬遷相關的 120 萬美元成本對本季稀釋後每股收益 0.06 美元，對全年稀釋後每股收益 0.07 美元產生負面影響。這被我們的遞延稅資產估值準備金減少以及本季和全年每股 0.12 美元和 0.16 美元的稀釋每股收益的增加所抵消。將這兩項抵消影響加在一起，本季度的利潤為 0.06 美元，正如您所看到的，沒有這兩項影響的基本盈利水平與去年的每股 0.20 美元相比毫不遜色。

For the year, the 2 special items had a combined positive effect on diluted EPS of $0.08, so with or without the $0.08 difference, the 2005 diluted EPS compares very favorably with last year’s $0.07 of diluted earnings per share.

今年，這兩個特殊項目對稀釋每股收益產生了0.08 美元的綜合積極影響，因此無論是否有0.08 美元的差異，2005 年稀釋每股收益與去年0.07 美元的稀釋每股收益相比都非常有利。

Slide 31 gives a 5-year perspective of our EBIT and cash generation. Our EBIT calculation is a cash flow-related calculation whose computation is set forth in the Selected Financial Data Table in our Form 10-K. After 3 years of negative EBIT results, 2004 and 2005 showed significant increases in earnings before interest and taxes. Adding non-cash depreciation and amortization expenses to EBIT shows cash flows have more than rebounded to earlier levels. They are more than double the levels of a few years ago. EBIT for 2005 increased more than two-thirds to $10.3 million while EBITDA grew 23% to over $16 million, reflecting higher revenue, improved gross margins, and controlled operating costs.

幻燈片 31 給出了我們 EBIT 和現金產生的 5 年前景。我們的息稅前利潤計算是與現金流量相關的計算，其計算方法在表格 10-K 的選定財務資料表中列出。在經歷了三年的負息稅前利潤之後，2004 年和 2005 年息稅前利潤顯著增長。將非現金折舊和攤提費用加到息稅前利潤中顯示現金流量已反彈至先前的水平。它們是幾年前水平的兩倍多。 2005 年的 EBIT 成長了三分之二以上，達到 1,030 萬美元，而 EBITDA 成長了 23%，超過 1,600 萬美元，這反映出收入的增加、毛利率的提高以及營運成本的控制。

Another perspective on our cash generation is provided by looking at the components of net cash from operations. The red bar represents net cash provided by operations as presented in our consolidated statement of cash flows. You can see that one of its two components, cash from operating activities before changes in operating accounts, which is depicted by the blue bar, has risen from a negative $5.3 million 2 years ago to $13.2 million in 2005.

透過觀察營運淨現金的組成部分，我們可以從另一個角度來看待我們的現金產生。紅色條代表我們的合併現金流量表中所示的營運提供的淨現金。您可以看到，其兩個組成部分之一，即經營帳戶變化前的經營活動現金（以藍色條表示），已從 2 年前的負 530 萬美元上升到 2005 年的 1,320 萬美元。

The green bar represents cash provided by or used for changes in operating accounts. Now these working capital accounts produced $6.4 million of cash in 2003 from such changes as reductions in receivables and inventory. But during the last 2 years, working capital requirements related to our extensive product rollouts consumed almost $7 million of cash in 2003 and $19 million in 2005. A large portion of the 2005 usage is related to accounts receivable, which swelled from shipments near year end, but which is expected to be monetized in the first quarter of 2006. Now, these are receivables with normal trade terms whose payment was simply not due prior to year end. And this temporary usage does not mean the trend in cash flow from operations is negative.

綠色條代表營運帳戶變更提供或使用的現金。現在，由於應收帳款和庫存的減少等變化，這些營運資本帳在 2003 年產生了 640 萬美元的現金。但在過去兩年中，與我們廣泛的產品推廣相關的營運資金需求在2003 年消耗了近700 萬美元現金，在2005 年消耗了1,900 萬美元。2005 年的大部分使用量與應收帳款有關，應收帳款因臨近年底的發貨而增加，但預計將在2006 年第一季貨幣化。現在，這些是具有正常貿易條件的應收帳款，其付款根本不會在年底前到期。而這種暫時使用並不代表經營現金流的趨勢為負。

The top half of this slide 33 shows the numbers behind the preceding bar chart. Note where the changes consist of the positive impact that the increase of net income had on cash from operations and the net working capital investments. As you can see, accounts receivable, inventories, and pre-pay increases dominated the changes in operating accounts. New products will allow us to be responsible for much of the inventory and pre-paid expense increases, and we expect both of those investments to decline over the course of 2006.

這張投影片 33 的上半部顯示了前面長條圖後面的數字。請注意，這些變化包括淨利潤增加對營運現金和淨營運資本投資的正面影響。正如您所看到的，應收帳款、庫存和預付款的增加主導了營業帳戶的變化。新產品將使我們能夠承擔大部分庫存和預付費用的增加，我們預計這兩項投資在 2006 年都會下降。

Investing activities were relatively small compared to other changes and the unusually high level of stock option exercises in 2005 is not expected to be repeated in 2006. So despite the significant increases in working and capital accounts at year end, cash declined only $2.2 million from the beginning of the year. In light of the significant increase at year end and our accounts receivable balance, I just wanted to assure you that the increase is not the result of delinquencies. Current receivables are illustrated by the green portion of each bar; receivables between 30 and 90 days past due are illustrated by the blue portion of each bar, and receivables over 90 days past due are shown in red. As you can see, the magnitude of all receivables more than 30 days past due has remained fairly constant over the past 2 years. And the line graph shows that the percentage of receivables over 90 days past due at the beginning and at the end of 2005 remained about the same at approximately 5%.

與其他變化相比，投資活動相對較小，而且2005 年異常高水平的股票期權行使預計2006 年不會重演。因此，儘管年底工作和資本賬戶大幅增加，但現金僅比2006 年減少了220 萬美元。年初。鑑於年底的大幅增長和我們的應收帳款餘額，我只是想向您保證，這種增長不是拖欠的結果。目前應收帳款由每個條形的綠色部分錶示；逾期 30 至 90 天之間的應收帳款由每個長條的藍色部分錶示，逾期超過 90 天的應收帳款以紅色顯示。正如您所看到的，所有逾期超過 30 天的應收帳款的規模在過去 2 年中保持相當穩定。折線圖顯示，2005年初及年底逾期90天以上的應收帳款比例大致維持不變，約5%。

To update you on our progress toward our target operating model, we now have 2 full years of progress to show. As you may recall, our long-term targets represent the performance levels that we believe accompany in our industry with approximately $150 million of annual revenues should be able to attain over time. Our gross profit margin was maintained in 2005 even with the costs associated with our various new product rollouts. Operating expenses fell slightly despite increases in R&D spending and special for our headquarters relocation. Both operating income and net available to common have made good strides toward our long-term targets. Depreciation continues to decline because of the low level of capital expenditures as our operations are not capital intensive. And importantly, new product revenue increased to 28% of total revenue and climbed to 38% by the fourth quarter of 2006. And our recurring revenue slipped a bit in 2005 as large increases in systems exceeded the increases in the combined materials and services revenues.

為了向您介紹我們在目標營運模式方面取得的最新進展，我們現在可以展示整整 2 年的進展。您可能還記得，我們​​的長期目標代表了我們認為隨著時間的推移我們行業應該能夠達到約 1.5 億美元年收入的績效水準。即使考慮到我們推出各種新產品的相關成本，2005 年我們的毛利率仍保持不變。儘管研發支出增加以及總部搬遷的特殊情況，但營運費用仍略有下降。營業收入和普通股淨收入都朝著我們的長期目標邁出了一大步。由於我們的業務並非資本密集型，因此資本支出水準較低，折舊持續下降。重要的是，新產品收入增加到總收入的28%，到2006 年第四季度攀升到38%。2005 年，我們的經常性收入略有下滑，因為系統的大幅增長超過了材料和服務綜合收入的增長。

In looking forward to our expectations in 2006, first we would not that we began to amortize stock option expense at the beginning of 2006 as required by FAS-123R. However, we do not expect this revised accounting standard to have a major impact on the Company going forward as we stopped granting stock options 2 years ago. Out total estimated stock option expense is expected to be about $1.4 million of which about $0.8 million should be recognized in 2006 and $0.6 million would be recognized in 2007. We expect depreciation and amortization of approximately $5.5 million this year, and we estimate R&D expense to be in the range of $11.5 million to $13 million for 2006.

展望 2006 年的預期，首先我們不會想到，我們從 2006 年初就開始按照 FAS-123R 的要求攤銷股票選擇權費用。然而，我們預期此次修訂後的會計準則不會對公司未來產生重大影響，因為我們已於兩年前停止授予股票選擇權。預計股票選擇權費用總額預計約為 140 萬美元，其中 2006 年應確認約 80 萬美元，2007 年應確認 60 萬美元。我們預計今年的折舊和攤銷約為 550 萬美元，我們預計研發費用為2006年的費用在1,150 萬至1,300 萬美元之間。

Prompted by the reduction in our allowance on deferred tax assets, we will henceforth record tax provisions for U.S. income taxes in our P&L. We estimate that our effective tax rate will be in the range of 25% to 30% in 2006 before we record any additional tax benefits related to additional evaluation allowance reductions. For example, we could provide a 25% to 30% tax provision in the first quarter, and in the second quarter and also 0potentially realize an allowance reduction in say the second quarter, which could turn the tax provision into a tax benefit that quarter. And we’ll of course review our forecast taxable income periodically and make additional reductions in the allowance on our deferred tax assets as circumstances require. Abe?

由於遞延所得稅資產準備金減少，我們今後將在損益表中記錄美國所得稅的稅務撥備。我們估計，在我們記錄與額外評估津貼減少相關的任何額外稅收優惠之前，2006 年的有效稅率將在 25% 至 30% 之間。例如，我們可以在第一季和第二季提供 25% 至 30% 的稅務撥備，並且還可能在第二季實現免稅額減少，這可能會將稅收撥備轉化為該季度的稅收優惠。當然，我們會定期審查我們的預測應稅收入，並根據情況需要進一步減少遞延所得稅資產的免稅額。安倍？

Thank you Fred. Before we open the lines for the q-and-a, I just wanted to quickly summarize some of our expectations for the near term and the mid term. While we are very pleased with our significant 2005 accomplishments and results, we are not ready to celebrate just yet. In fact, looking ahead, we have identified several key initiatives for 2006 and beyond. The initiatives include completing our headquarter consolidation in Rock Hill successfully on time and budget; continuing to strengthen our sales and marketing organization, and launching specific sales and marketing initiatives to support the application development with special emphasis on Europe and Japan.

謝謝弗雷德。在我們開始問答之前，我只想快速總結一下我們對近期和中期的一些期望。雖然我們對 2005 年的重大成就和成果感到非常滿意，但我們還沒有準備好慶祝。事實上，展望未來，我們已經確定了 2006 年及以後的幾項關鍵措施。這些舉措包括按時按預算成功完成位於 Rock Hill 的總部整合；繼續加強我們的銷售和行銷組織，並推出具體的銷售和行銷措施來支援應用程式開發，特別是歐洲和日本。

We plan to commercialize additional 3D printers and to extend out authorized 3D printer reseller channel. We plan on continuing to enhance our service effectiveness and profitability, and we plan on developing new rapid manufacturing applications and introducing new engineering materials and composites. And we are implementing our new Oracle-based ERP system, and we’re involved in new products and production and we plan on pruning our product portfolio and retiring certain older Legacy systems from our product line, and at the same time we plan on continuing to improve our operations and our customers’ experience.

我們計劃將更多 3D 列印機商業化，並擴展授權 3D 列印機經銷商通路。我們計劃繼續提高我們的服務效率和盈利能力，並計劃開發新的快速製造應用並引入新的工程材料和複合材料。我們正在實施新的基於 Oracle 的 ERP 系統，我們正在參與新產品和生產，我們計劃修剪我們的產品組合併從我們的產品線中淘汰某些舊的舊系統，同時我們計劃繼續改善我們的營運和客戶體驗。

Finally, we expect ongoing introduction of new engineered plastics and metal materials and composites to facilitate and drive significant increases in our recurring revenues from materials and services. We also plan to continue to pursue strategic alliances and outsource partners. We believe and anticipate that these key initiatives will result in improved operating results.

最後，我們預計將持續推出新的工程塑膠、金屬材料和複合材料，以促進和推動我們來自材料和服務的經常性收入的大幅成長。我們也計劃繼續尋求策略聯盟和外包合作夥伴。我們相信並預期這些關鍵措施將改善經營績效。

And finally, on slide number 40 I wanted to remind everybody of the strong fundamentals of our business. We firmly believe that we have demonstrated our ability to turn the Company around and place it on a solid, long-term growth path. And we will continue to leverage our strong fundamentals which include our leading marketplace position which we continue to strengthen and build through technology; our experienced organization; our clear customer priorities and demonstrate execution; our strong financial base and flexibility; our totally transformed and comprehensive solutions portfolio; our healthy pipeline of additional opportunities, which results in a steady stream of new product introductions; our improving operating results and efficiencies; our unwavering focus on 2 significant growth programs, 3D printing and rapid manufacturing; and our fundamental understanding that we are in business to deliver a measurable value to our customers and stockholders.

最後，在第 40 號投影片上，我想提醒大家我們業務的強大基礎。我們堅信，我們已經證明了我們有能力扭轉公司局面，並使其走上堅實、長期的成長道路。我們將繼續利用我們強大的基礎，其中包括我們透過技術不斷加強和建立的領先市場地位；我們經驗豐富的組織；我們明確的客戶優先事項並展示執行力；我們強大的財務基礎和靈活性；我們徹底轉型的全面解決方案組合；我們健康的額外機會管道，從而源源不斷地推出新產品；我們改善經營績效和效率；我們堅定不移地專注於 2 個重要的成長計劃：3D 列印和快速製造；我們的基本認知是，我們的業務是為客戶和股東提供可衡量的價值。

And with this, we will now open the call to questions.

現在，我們將開始提問。

[OPERATOR INSTRUCTIONS]. Troy Jensen, Piper Jaffray.

[操作員說明]。特洛伊·詹森，派珀·賈弗雷。

Hey congrats on a nice quarter guys.

嘿，恭喜你們度過了一個美好的季度。

Thanks.

謝謝。

Hey, quick question Abe; can you take me a little bit to the rapid manufacturing opportunity? Do you think as it develops do you think it’s going to be more inclined to use your [SLS] technology, like the Sinterstation probe versus the SLA technology from the Viper systems?

嘿，快問安倍；您能帶我了解快速製造機會嗎？您認為隨著它的發展，您是否認為它會更傾向於使用您的 [SLS] 技術，例如 Sinterstation 探測器，而不是 Viper 系統的 SLA 技術？

Yes that’s a very good question Troy, and the way that we look at we see opportunities for both technologies and both systems simply because for us manufacturing boils down to 2 types; there is what we call direct-profit manufacturing and indirect-profit manufacturing. In direct-profit manufacturing we talk about making directly on one of our machines the end use parts and it’s fair to assume that for those applications, selective laser sensoring, as it stands today probably would be the solution of choice.

是的，這是一個非常好的問題，特洛伊，我們看待這兩種技術和兩種系統的方式都看到了機會，因為對我們來說，製造業可以歸結為兩種類型：有我們所說的直接利潤製造和間接利潤製造。在直接利潤製造中，我們談論的是直接在我們的一台機器上製造最終使用零件，並且可以合理地假設，對於這些應用，選擇性雷射感測（如目前的情況）可能是首選的解決方案。

However, there are many indirect applications, particularly when it comes to tooling the master [cadrons] involved and also from mass production from sacrificial molds in investment casting and there we see our [inaudible] technology having a significant opportunity to penetrate into those types of applications.

然而，有許多間接應用，特別是當涉及到所涉及的主[卡龍]工具以及熔模鑄造中犧牲模具的大規模生產時，我們看到我們的[聽不清]技術有很大機會滲透到這些類型的領域。應用程式。

And so it’s not be accident that we developed faster more automated larger capacity machines in both of our technology platforms, SLS and SLA because we anticipate both platforms having significant opportunities in rapid manufacturing.

因此，我們在 SLS 和 SLA 這兩個技術平台中開發出更快、更自動化、更大容量的機器並非偶然，因為我們預期這兩個平台在快速製造方面都擁有巨大的機會。

And just to add to that, please remember that in some of our healthcare applications, actually [inaudible] is leading the charge. For example, if you look at all the In-The-Ear hearing aid shells, if you look at the InVisiline applications, all of those are completely on our SLA technology.

除此之外，請記住，在我們的一些醫療保健應用中，實際上 [聽不清楚] 正在引領潮流。例如，如果您查看所有入耳式助聽器外殼，如果您查看 InVisiline 應用程序，所有這些都完全基於我們的 SLA 技術。

And Abe if you look at your product spectra, is it safe to say that the Viper and the Sinterstation are going to have the highest product gross margins?

Abe 如果你看看你的產品譜，是否可以肯定地說 Viper 和 Sinterstation 將擁有最高的產品毛利率？

It’s fair to assume that new systems that we introduce with the kind of value propositions that we offer would command higher margins.

可以公平地假設，我們引入的具有我們提供的價值主張的新系統將獲得更高的利潤。

Okay, if you could just help me out with one thing.

好吧，如果你能幫我解決一件事就好了。

Wait, we’ve got to get you to the bottom of the queue there Troy.

等等，我們必須讓你排在特洛伊那裡的隊列底部。

Eric Martinuzzi, Craig-Hallum Capital.

馬丁努齊 (Eric Martinuzzi)，克雷格哈勒姆資本 (Craig-Hallum Capital)。

Good morning; my question is from to the top line, the sustainability of the systems revenue. You guys showed real strong systems growth in 2005, up 21% which was better growth than you saw in 2005. Given the fact that you did see some benefit I think from new systems in ’05, do you see that growth rate as sustainable in 2006 Abe?

早安;我的問題是從最重要的角度來說，系統收入的可持續性。你們在2005 年表現出了真正強勁的系統成長，成長了21%，這比你們在2005 年看到的成長要好。考慮到你們確實看到了我認為05 年新系統帶來的一些好處，你們認為這種成長率在2005 年是否可持續？2006年安倍？

Well you know Eric that we are not in the habit of providing forward-looking guidance on top line or any other line in our P&L except for guidance on R&D and depreciation. But it’s -- look, we’ve said again and again Eric that we are not managing this business for any quarterly photo finish; that we are building a strong foundation for sustainability and for profitable growth, and we believe that with every major and new product in production, we enhance the likelihood of that sustainability and for us it’s like pulling on the flywheel every day a little bit and building momentum, and as we said several times Eric this morning, we’re not ready to celebrate and declare a victory here but we’re very pleased with the progress both in terms of the new high-end system but also we shared with your some information today about the significant progress that we’re making on the 3D printing side of the business, and for us the sustainability is going to come from completing the transformation of the portfolio, completing the transformation of the business model and building upon it.

艾瑞克，你知道，除了研發和折舊的指導外，我們不習慣在營收或損益表中的任何其他項目上提供前瞻性指導。但艾瑞克，你看，我們已經一次又一次說過，我們管理這項業務並不是為了完成任何季度的照片；我們正在為永續發展和獲利成長奠定堅實的基礎，我們相信，隨著每個主要產品和新產品的投產，我們都增強了永續發展的可能性，對我們來說，這就像每天稍微拉動飛輪並建立正如我們今天早上多次說過的那樣，埃里克，我們還沒有準備好在這裡慶祝和宣布勝利，但我們對新的高端系統方面的進展感到非常高興，而且我們也與你們分享了一些今天的資訊是關於我們在 3D 列印業務方面取得的重大進展，對我們來說，永續性將來自於完成投資組合的轉型、完成業務模式的轉型並在此基礎上繼續發展。

Okay, so the short answer is “No comment.”

好吧，簡短的回答是「無可奉告」。

You got it! Just simply my previous comments.

你說對了！只是我之前的評論。

Well, let me just one follow-up then; a counter to that was the services, and I know directionally we were down. Can you at least your outlook for ’06, do you expect that to recover in ’06 given the steps that you took in ’05?

好吧，那麼讓我跟進一下；與此相反的是服務，我知道我們的方向是下降的。您能否至少對 06 年的前景做出展望？考慮到您在 05 年採取的步驟，您預計 06 年會恢復嗎？

Well again, it’s a similar question to the first one, but bear in mind for example that the cause and effect here by deciding to stop selling upgrades and enhancement packages for certain older Legacy systems, we believe that we are succeeding in selling newer systems. So in essence, there is a correlation here or a cause and effect between taking an initiative on the service side and realizing a benefit on the systems revenue side.

好吧，這與第一個問題類似，但請記住，例如，透過決定停止銷售某些舊舊系統的升級和增強包，我們相信我們正在成功銷售新系統。因此，從本質上講，在服務端採取主動和在系統收入端實現收益之間存在相關性或因果關係。

And that’s the balance that we’re managing right now Eric, and will continue to manage for quite a few quarters to come because we would like to have a more coherent product life cycle prodigy and begin to proactively retire more of the older Legacy systems for the benefit of new system sales and for the benefit of new material sales. And that’s the balance that we’re managing.

這就是我們現在正在管理的平衡，埃里克，並將在未來的幾個季度繼續管理，因為我們希望擁有一個更連貫的產品生命週期神童，並開始主動淘汰更多舊的舊系統。有利於新系統銷售和有利於新材料銷售。這就是我們正在管理的平衡。

Okay, I see; and one last one if I could.

好吧，我明白了；如果可以的話，還有最後一張。

Out of respect of the other conference call participants, please return to the queue.

出於對其他電話會議參與者的尊重，請返回隊列。

Thank you.

謝謝。

Bill Gibson, Nollenberger Capital Partners.

比爾·吉布森，諾倫伯格資本合夥人。

Hi Abe, I’ve got a question on LD which is pretty promising of bringing down the price here. But can you sort of share with us the rough breakout between that and what you’re doing in standard and high resolution? I mean, does the LD account for a small piece of that $16 million last year, or is it more than half?

你好，Abe，我有一個關於 LD 的問題，LD 很有希望降低這裡的價格。但是您能否與我們分享您在標準和高解析度方面所做的工作之間的大致突破？我的意思是，去年 1600 萬美元中，LD 只佔一小部分，還是一半以上？

Well that’s a good question Bill. I mean while we don’t offer a breakdown of systems sold in total or in sub-categories, suffice it to say that the LD is our newest product in the product line and as such it does not amount for much of the $16 million we realize din 2005. So the potential contributions from LD will come in future periods.

嗯，這是一個很好的問題，比爾。我的意思是，雖然我們沒有提供系統銷售總量或子類別的詳細信息，但只要說LD 是我們產品線中的最新產品就足夠了，因此它在我們1600 萬美元的銷售額中所佔比例並不大。2005 年 實現。因此，LD 的潛在貢獻將在未來時期出現。

Good, and I’m intrigued with this BP for the Dental market. Do you have any sense of how – I mean that seems like a fairly significant market to me but I don’t know that market.

很好，我對牙科市場的 BP 很感興趣。你知道嗎？我的意思是，這對我來說似乎是一個相當重要的市場，但我不了解那個市場。

Well, we disclosed earlier this week in a press release some independent assessment of the size and magnitude of the dental lab market. It’s a very substantial market, and it’s a market that the spending in it increases on an annual basis. I don’t remember all the numbers off the top of my head Bill, but I would refer you to that press release, and it has some really comprehensive analysis of the size of the opportunity.

好吧，我們本週早些時候在一份新聞稿中披露了對牙科實驗室市場規模和規模的一些獨立評估。這是一個非常龐大的市場，也是一個支出逐年增加的市場。比爾，我不記得所有的數字了，但我建議您參閱新聞稿，其中對機會的大小進行了一些非常全面的分析。

And it’s another good example, by the way, of the deliberate way in which we are going to market considering in 1 week we introduced 2 different 3D printing opportunities. One was a very well positioned entry level desktop unit, the first in the industry below $15,000.

順便說一句，考慮到我們在 1 週內推出了 2 種不同的 3D 列印機會，這是我們在市場上進行深思熟慮的另一個很好的例子。其中一款是一款定位非常好的入門台式機，是業界首款價格低於 15,000 美元的產品。

The second was a very bold, in essence, rapid manufacturing application with the InVision Dental Pro that we will end up selling for about $99,000, and it’s another example of the tactical and deliberate way in which we identify vertical opportunities and match the price and the value proposition to the application.

第二個是 InVision Dental Pro 的非常大膽、本質上是快速製造應用，我們最終售價約為 99,000 美元，這是我們識別垂直機會並將價格與產品相匹配的戰術和深思熟慮方式的另一個例子。對應用程式的價值主張。

I saw that the market size in the release, but I was just assuming that the market was a lot bigger than the actual applications that this product applied, or am I incorrect in that?

我在版本中看到了市場規模，但我只是假設市場比該產品應用的實際應用程式大得多，還是我的說法不正確？

Well, time will time Bill. We’re initially targeting only one segment within that entire dental market. There are lots of other applications that are of interest to us. For example, Drill Guide for implants and many others, and we talked about some of these applications when we went to New York last month to the [Needham] conference. So there are lots of other opportunities within dental, but for us, this one is kind of tried and proven and that’s the first one that we are going after.

好吧，時間會證明比爾的。我們最初只針對整個牙科市場中的一個細分市場。還有許多我們感興趣的其他應用程式。例如，用於植體的 Drill Guide 和許多其他應用程序，我們上個月去紐約參加 [Needham] 會議時討論了其中一些應用程式。因此，牙科領域還有很多其他機會，但對我們來說，這個機會已經被嘗試和證明，這是我們追求的第一個機會。

Thanks Abe; I’ll get back in queue.

謝謝阿部；我會回到隊列中。

[OPERATOR INSTRUCTIONS]. Troy Jensen, Piper Jaffray.

[操作員說明]。特洛伊·詹森，派珀·賈弗雷。

Hey guys; I just want to kind of follow up that sequence of questions. Some of the graphic manufacturing did great this quarter; you guys had 50% sequential growth in product sales sequentially, and we assume that these are high-margin products. There seems to be a disconnect on the product gross margins because they actually declined on a sequential basis, and I guess I would have thought that we would have seen nice sequential growth in product gross margins. Can you kind of help solve this mystery?

大家好;我只是想跟進這一系列問題。一些圖形製造本季表現出色；你們的產品銷售量較上季成長了 50%，我們假設這些是高利潤產品。產品毛利率似乎存在脫節，因為它們實際上是連續下降的，我想我會認為我們會看到產品毛利率的持續成長。你能幫忙解開這個謎團嗎？

Well, one of the reasons Troy, and when we have the new products coming out we will encourage people to try them. We have extra costs associated with rolling those out, and so I would expect that those margins could probably be stronger after the initial couple of shipments.

嗯，特洛伊的原因之一是，當我們推出新產品時，我們會鼓勵人們嘗試它們。我們有與推出這些產品相關的額外成本，因此我預計在最初的幾次發貨後，這些利潤率可能會更高。

Okay, and then how about -- I know you won’t quantify the answer here -- but if you look at consumable usage, how much more consumables get burned out than rapid manufacturing applications for you guys versus traditional rapid prototyping?

好吧，然後怎麼樣——我知道你不會在這裡量化答案——但是如果你看看消耗品的使用情況，與傳統的快速原型製作相比，你們的快速製造應用程序消耗的消耗品要多多少？

Well, it really depends on the application. There is no kind of cut and dry answer; it depends on the application and it depends on the size of the part. I’ll give you just 2 extremes here. You have a company like let’s say a hearing-aid manufacturer and a very high volume, extremely high volume of unit counts but tiny little hearing-aid shells. So the consumption per part is not very high, but the volume is very high.

嗯，這確實取決於應用程式。沒有任何固定答案。這取決於應用和零件的尺寸。我在這裡只給你兩個極端。你有一家像助聽器製造商這樣的公司，其產量非常大，但助聽器外殼很小。所以每個零件的消耗量不是很高，但是體積卻很大。

And then on the other extreme, you have a Defense contractor that builds [conformal] enclosures and air ducts; the consumption per part is very high, but the unit count is not as high. And so it’s hard to give a direct answer to that Troy.

然後在另一個極端，你有一個國防承包商建造[保形]外殼和空氣管道；每個零件的消耗量都非常高，但單位數量卻沒有那麼高。因此很難對特洛伊城給出直接答案。

But suffice it to say that generally speaking, manufacturing applications consume a lot more material than prototyping applications.

但我只想說，一般來說，製造應用程式比原型設計應用程式消耗更多的材料。

Great okay; so down the road we should expect to see stronger growth in consumables than we do system sales because they’re in rapid manufacturing applications.

太好了，好吧；因此，今後我們預期消耗品的成長將比系統銷售的成長更為強勁，因為它們處於快速製造應用中。

Yes but remember too that what’s at play here is that we sell our optic manufacturing system, it’s something in the range of $500,000 and upwards it could be as high as $850,000. And so that tends to skew the ratios between system sales and material sales and of course, for the foreseeable future we want to populate the field with as many new installs as we can. And so while material usage grows in subsequent quarters, the size and magnitude of system sales can dwarf the progress that we are making in material sales, but it’s reasonable to expect that over time, the install base consumes more and more materials.

是的，但也要記住，這裡起作用的是我們出售我們的光學製造系統，價格在 50 萬美元左右，最高可能高達 85 萬美元。因此，這往往會扭曲系統銷售和材料銷售之間的比率，當然，在可預見的未來，我們希望用盡可能多的新安裝來填充該領域。因此，雖然材料使用量在接下來的幾個季度中有所增長，但係統銷售的規模和規模可能會讓我們在材料銷售方面取得的進展相形見絀，但可以合理地預期，隨著時間的推移，安裝基礎會消耗越來越多的材料。

And I will also remind you that we still have a significant opportunity available to us off the Legacy install base where we historically enjoy only about 30% of the available opportunity on these machines because of third-party suppliers. Of course, with the new systems that we are selling today, these are all closed systems with proprietary material packaging and delivery cartridges, and there we expect higher retention.

我還要提醒您，我們在傳統安裝基礎上仍然擁有重要的機會，由於第三方供應商的原因，我們歷史上在這些機器上僅享有約 30% 的可用機會。當然，對於我們今天銷售的新系統，這些都是具有專有材料包裝和輸送盒的封閉系統，我們期望更高的保留率。

Okay, well keep up the good work guys.

好的，我們繼續努力，夥計們。

Thanks.

謝謝。

Troy I might add just a couple of other items. You asked about margins; the foreign exchange translation impacts in ’05 were just the opposite of what they have been so that decreased our revenue but it didn’t affect our costs, so that was a negative impact. And besides the translation effects, we also had about $1 million swing, adverse swing from ’04 to ’05 in foreign exchange transaction amounts as well.

特洛伊 我可能會添加一些其他項目。您詢問了利潤率； 05年的外匯折算影響與以往相反，因此減少了我們的收入，但沒有影響我們的成本，所以這是一個負面影響。除了換算效應之外，我們的外匯交易金額也從 04 年到 05 年出現了約 100 萬美元的波動，逆向波動。

Okay, thanks a lot.

好的，非常感謝。

Eric Martinuzzi, Craig-Hallum Capital.

馬丁努齊 (Eric Martinuzzi)，克雷格哈勒姆資本 (Craig-Hallum Capital)。

From the channel development, it looks like you guys have shown some good progress there. I think this is the first time that you’ve given us a number in which the 70 resellers signed up. Could you indicate is there, could you break that out domestic versus international and then comment on whether there’s any issues signing up resellers given some of the competitors out there where you have kind of a head start on the 3D printer and the lower price point product?

從通路建設來看，你們已經取得了一些不錯的進展。我認為這是您第一次向我們提供 70 家經銷商註冊的號碼。您能否指出是否存在，能否將其區分為國內與國際，然後評論一下在簽約經銷商方面是否存在任何問題，因為您在 3D 列印機和較低價位產品方面擁有領先優勢的一些競爭對手？

Eric you are correct in saying that this is the first time we actually shared with you the progress that we are making on developing the reseller channel, and it’s gratifying for us to have now about 70 branches up and running. I don’t have off the top of my head the geographical breakdown between U.S. and international. But since we started the development in the U.S., it’s reasonable to expect that we have more resellers in the U.S. than outside of the U.S. at this point in time.

Eric，您說得對，這是我們第一次真正與您分享我們在開發經銷商通路方面所取得的進展，我們很高興現在擁有大約 70 個分店並正在營運。我並不清楚美國和國際之間的地理分佈。但自從我們在美國開始開發以來，我們有理由預計，目前我們在美國擁有的經銷商比美國以外的經銷商還要多。

It has not really been for us, in the competitive sense it has not been difficult to recruit resellers because we are really not going after the same resellers that our competitors developed. I shared with you in many earlier occasions that we are targeting primarily wide format, 2D printing and plotting our resellers. We are not targeting any of the traditional 3D solid modeling CAD resellers that some of our competitors targeted, and we started that by very deliberately recruiting into our own organization key leadership and channel management people that came from that industry.

對我們來說，情況並非如此，從競爭的角度來看，招募經銷商並不困難，因為我們實際上並不是在追求競爭對手開發的經銷商。我之前曾多次與您分享過，我們的目標主要是寬幅、2D 列印和繪製我們的經銷商。我們的目標並不是某些競爭對手所針對的任何傳統3D 實體建模CAD 經銷商，我們是透過非常有意地招募來自該行業的關鍵領導和通路管理人員加入我們自己的組織來開始這一目標的。

And so we’re really going a different way; we’re developing a different channel, and we will continue to develop it at least to a level of double what we have today and then we will stop and reassess again how large the channel needs to be. Most of our channel participants have been in business for a long time. They have established facilities; most of them have multiple branches; most of them have brick and mortar in terms of [demo] facilities, and most of them have substantial sales and in-house service organizations. And that’s the profile that we’re going after.

所以我們確實走了一條不同的路；我們正在開發一個不同的管道，我們將繼續將其發展到至少是我們現在的兩倍的水平，然後我們將停下來再次重新評估該管道需要多大。我們的大多數通路參與者已經經營了很長時間。他們已經建立了設施；大多數有多個分支機構；他們中的大多數都擁有實體[演示]設施，並且大多數都擁有大量的銷售和內部服務組織。這就是我們要追求的個人資料。

And of the 3D printers that you’re moving, are there any channel conflicts here? Are you moving most of them through the channel or is it still predominantly through your direct sales force?

您正在移動的 3D 列印機中，是否有頻道衝突？您是否透過管道轉移大部分客戶，還是仍主要透過您的直銷團隊？

No, I’d say that today, most of what’s happening is happening through the channel, but in any event we do not have channel conflicts. We have a dedicated channel management sales team in-house that works with the resellers, and we also incentivize our general sales organization, our sales reps that are charged with selling the large systems have incentives to cooperate and sell through the reseller, bring lease to the resellers, and conversely the resellers have some incentive to provide us for leads to sell larger systems because they from time to time uncover opportunities that cannot be addressed by a 3D printer.

不，我想說，今天發生的大部分事情都是透過管道發生的，但無論如何我們沒有管道衝突。我們內部有專門的通路管理銷售團隊與經銷商合作，我們也激勵我們的一般銷售組織，負責銷售大型系統的銷售代表有動力與經銷商合作和銷售，為經銷商帶來租賃經銷商，反之亦然，經銷商有一定的動力為我們提供銷售大型系統的線索，因為他們不時會發現3D 列印機無法解決的機會。

And so we very deliberately designed the program so that it will be complementary and not conflicting.

因此，我們非常謹慎地設計了該計劃，以便它可以互補而不是衝突。

Mickey Strauss.

米基·施特勞斯.

I’m just curious on the strategy, the pricing strategy on the new systems. It seems so aggressive, the $14,000 price. And then I heard you say the margins would be higher on these systems, but it surprised so maybe you could elaborate on that.

我只是對新系統的策略、定價策略感到好奇。 14,000 美元的價格看起來太激進了。然後我聽到您說這些系統的利潤會更高，但令人驚訝，所以也許您可以詳細說明這一點。

No what I said was -- well I said 2 things; one is I said that generally speaking the new larger systems in any new system that we would develop and introduce is like to command higher margins. That wasn’t specifically addressed to the LD.

不，我說的是──我說了兩件事；一是我說過，一般來說，我們將開發和引入的任何新系統中的新較大系統都會獲得更高的利潤。這並不是專門針對 LD 的。

Now, the LD pricing strategy was developed together with our supplier, Solid Dimension actually in part at their urging because they believe strongly that they have certain capabilities in design and manufacturing that we ought to leverage, so this was a collaboration between us and our supplier under our OEM agreement. And it’s the kind of aggressive pricing that we believe is required to be able to build a significant high-volume opportunity here, and obviously Mickey we’re walking into this with our eyes open. We are a for-profit organization, and we have agonized and analyzed this and concluded that at this price, there exists a profitable opportunity.

現在，LD 定價策略是與我們的供應商Solid Dimension 一起制定的，實際上部分是在他們的敦促下，因為他們堅信他們在設計和製造方面擁有我們應該利用的某些能力，所以這是我們和我們的供應商之間的合作是根據我們的 OEM 協議。我們認為，要在這裡建立一個重要的大批量機會，就需要這種積極的定價，顯然米奇，我們正在睜大眼睛走進這個市場。我們是一個營利性組織，我們對此進行了痛苦和分析，並得出結論：在這個價格下，存在盈利機會。

What’s also interesting and exciting here is that we anticipate a certain annual consumption for these printers which is why we would like to sell more of them, and in our business models, the relationship between placements and consumables is such that not only are you profitable day-1 when you sell and install, but every installation becomes even more profitable over time.

這裡同樣有趣和令人興奮的是，我們預計這些印表機的年消耗量一定，這就是為什麼我們希望出售更多印表機，並且在我們的商業模式中，佈局和耗材之間的關係使得您不僅可以盈利當您銷售和安裝時為-1，但隨著時間的推移，每次安裝都會變得更加有利可圖。

So are you saying that the gross margins here might be below your Company average, but you expect to make it up in consumables over time? Is that another way to say it?

那麼您是說這裡的毛利率可能低於您公司的平均水平，但您希望隨著時間的推移透過消耗品來彌補？這是另一種說法嗎？

What we’re saying is that this is another initiative where on a consolidated basis we expect it to contribute to our long-term gross profit margin targets.

我們想說的是，這是另一項舉措，在綜合基礎上，我們預計它將為我們的長期毛利率目標做出貢獻。

But you’re not answering the question as to whether the gross profit margins are below the Company average or below you other machines, so I think you did say for the $22,000 item you expect the gross margins to be the same or better than what you’ve seen in the past.

但你沒有回答毛利率是否低於公司平均或低於你其他機器的問題，所以我認為你確實說過，對於 22,000 美元的產品，你預計毛利率與你的毛利率相同或更好過去見過。

Because we don’t look at our gross margin and break it out between systems and materials in this regard.

因為我們不看我們的毛利率，並在這方面將其在系統和材料之間進行分解。

Thank you.

謝謝。

At this time, there are no further questions.

目前，沒有其他問題了。

Okay ladies and gentlemen, we will now close the call. Thank you for joining us today. We look forward to continuing to report our progress and results. A replay of this webcast will be made available 2 hours after the call on the 3D Systems website under the Investor Relations section.

好的，女士們先生們，我們現在結束通話。感謝您今天加入我們。我們期待繼續報告我們的進展和結果。電話會議結束後 2 小時，將在 3D Systems 網站的投資者關係部分重播該網路廣播。