3D Systems Corp (DDD) 2006 Q3 法說會逐字稿

Good morning and welcome to the 3D Systems conference call and audio webcast.

早安，歡迎來到 3D Systems 電話會議和音訊網路廣播。

My name is Phyllis, and I will be facilitating the audio portion of today's interactive broadcast. (OPERATOR INSTRUCTIONS).

我叫菲利斯，我將負責今天互動廣播的音訊部分。 （操作員說明）。

At this time I would like to turn the call over to Chanda Hughes, Investor Relations for 3D Systems.

現在我想將電話轉給 3D Systems 投資者關係部的 Chanda Hughes。

Good morning and welcome to 3D Systems' conference call.

早安，歡迎參加 3D Systems 的電話會議。

I am Chanda Hughes, and with me on the call are Abe Reichental, CEO;

我是 Chanda Hughes，與我一起參加電話會議的是執行長 Abe Reichental；

Fred Jones, CFO; and Bob Grace, General Counsel.

弗雷德瓊斯，財務長；和總法律顧問鮑勃·格雷斯 (Bob Grace)。

The audio webcast portion of this call contains a slide presentation that will we will refer to during the call.

本次通話的音訊網路廣播部分包含我們將在通話期間參考的幻燈片簡報。

Those following along on the phone with the access to the slide portion of this presentation may do so via the Web at www.3dsystems.com.

透過電話觀看本簡報幻燈片部分的人員可以透過 www.3dsystems.com 網站進行存取。

For those of you who have accessed the streaming portion of the webcast, please be aware that there is a three second delay, and that you will not be able to post questions via the Web.

對於那些訪問過網路廣播串流媒體部分的人，請注意，會有三秒的延遲，並且您將無法透過網路發布問題。

Before we get into the discussion, I would like to preface our presentation today with a statement regarding forward-looking information.

在我們開始討論之前，我想以有關前瞻性資訊的聲明作為我們今天演講的序言。

Certain statements made in this presentation that or not statements of historical or current facts are forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995.

本簡報中的某些陳述（無論是否涉及歷史或當前事實）均屬於《1995 年私人證券訴訟改革法案》含義內的前瞻性陳述。

Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements.

前瞻性陳述可能涉及已知和未知的風險、不確定性和其他因素，這些因素可能導致公司的實際結果、業績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存在重大差異。

In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements in the future conditional tenses, or that include the terms, believe, belief, expect, estimate, intends, anticipate, or plans to be uncertain and forward-looking.

除了明確描述此類風險和不確定性的陳述外，還敦促讀者考慮未來條件時態的陳述，或包括術語、相信、相信、期望、估計、打算、預期或計劃不確定和前瞻性的陳述。看著。

Forward-looking statements may include comments as to the Company's beliefs and expectations as to future events and trends affecting its business.

前瞻性陳述可能包括對公司對影響其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.

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。

Many of which are outside the control of the Company.

其中許多不屬於公司的控制範圍。

In particular, the factors stated under the heading, Forward-looking Statements, Cautionary Statements and Risk Factors, and Risk Factors that appear on this Company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.

特別是，前瞻性陳述、警示性陳述和風險因素標題下所述的因素以及該公司向證券交易委員會定期提交的文件中出現的風險因素以及其他因素可能會導致實際結果有所不同實質上來自前瞻性陳述中反映或預測的內容。

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

這次我想介紹一下執行長Abe Reichental。

Good morning everyone, and thank you very much for taking the time to listen for our call this morning on such a short notice.

大家早安，非常感謝您今天早上在如此短的時間內抽出時間收聽我們的電話。

As you may recall early in November we announced that we had determined that the financial statements included in our Form 10-Q report for the first and second quarters of '06 contained errors.

您可能還記得，我們​​在 11 月初宣布，我們已確定 06 年第一季和第二季的 10-Q 表格報告中包含的財務報表有錯誤。

As a result of management's recommendations our audit committee concluded that those financial statements should be restated, and that we should assess whether there may have been errors in our prior period statements.

根據管理階層的建議，我們的審計委員會得出的結論是，這些財務報表應該重述，並且我們應該評估前期報表中是否有錯誤。

Consequently, we performed our third quarter earnings release and Form 10-Q filings pending completion of these restatements.

因此，我們在完成這些重述之前進行了第三季收益發布和 10-Q 表格備案。

We are very pleased today to report to you that we have filed our third quarter Form 10-Q.

我們今天非常高興地向您報告，我們已經提交了第三季的 10-Q 表格。

And to share with you in detail the scope and magnitude of our restatement of prior periods and the results of our third quarter.

並與您詳細分享我們前期重述的範圍和程度以及第三季的業績。

This morning I will share with you the third quarter results and also bring you up-to-date on the state of our business.

今天早上，我將與您分享第三季的業績，並向您介紹我們的最新業務狀況。

And Fred Jones, our CFO, will walk you through the highlights of the financial restatement and the financial results for the third quarter and first nine months of '06.

我們的財務長 Fred Jones 將向您介紹財務重述的重點以及 06 年第三季和前九個月的財務表現。

In line with our December 14, '06 announcement, earlier this morning we reported revenue for the third quarter of '06 of $31.5 million, which represents a 2.2 decrease from restated revenue reported for the third quarter of '05, but a 16% revenue increase on the sequential quarter basis over our second quarter of '06 revenue.

根據我們06 年12 月14 日的公告，今天早上早些時候，我們報告了06 年第三季的收入為3150 萬美元，比05 年第三季重述的收入減少了2.2，但收入增長了16%與 06 年第二季的營收相比，季比有所成長。

We believe that this sequential improvement reflects the early impact of the corrective action plan that we began to implement in July of '06.

我們認為，這種連續的改善反映了我們從 06 年 7 月開始實施的糾正行動計畫的早期影響。

As we mentioned previously, we also ended the third quarter with a $13 million order backlog, primarily consistent of materials, a majority of which we anticipated shipping during the remainder of '06.

正如我們之前提到的，我們在第三季結束時還積壓了 1,300 萬美元的訂單，主要是材料，我們預計其中大部分將在 06 年剩餘時間內發貨。

We are pleased by the fact that we ended the third quarter with a significantly larger backlog of new orders compared to our historical experience, because we believe that this suggest that our larger than anticipated results in the third quarter were symptoms of the distractions we experienced, rather than a fundamental problem with our business.

與我們的歷史經驗相比，我們對第三季末的新訂單積壓量顯著增加感到高興，因為我們認為這表明我們第三季度超出預期的業績是我們經歷的干擾的症狀，而不是我們業務的根本問題。

We also believe that the significant backlog in our progress in shipping is to [just serve] that the demand for our product and services remain strong.

我們也相信，我們在運輸方面取得的大量積壓是為了[只是服務]對我們產品和服務的需求仍然強勁。

And, but for the temporary problems we experienced in the fulfilling orders, we would have contributed -- will have contributed to a significantly better third quarter than we experienced.

而且，如果不是我們在履行訂單時遇到的臨時問題，我們本可以做出貢獻——將為第三季的表現做出比我們經歷的更好的貢獻。

And second, that we're making progress in correcting all of these disruptions.

其次，我們在糾正所有這些幹擾方面正在取得進展。

While we're not in a position today to comment in a any detail on our performance in subsequent periods, we believe that our first quarter '06 revenue will reflect a continuation of the improving plan with which we exited the third quarter.

雖然我們今天無法對後續期間的業績進行任何詳細評論，但我們相信 06 年第一季的收入將反映出我們在第三季退出時所執行的改進計劃的延續。

As a result of lower third quarter revenue, lower gross profit and higher expenses, we reported a third quarter net loss available to common stockholders of $11.3 million.

由於第三季收入下降、毛利潤下降和費用增加，我們報告第三季普通股股東淨虧損為 1,130 萬美元。

Net losses in the third quarter included a $2.5 million of non-cash income tax expense arising out of the recording of evaluation allowance at September 30 of '06 against the net deferred tax asset that we recorded at December 31, '05 as a result of the Company's changed outlook.

第三季的淨虧損包括250 萬美元的非現金所得稅費用，這是由於我們在2006 年9 月30 日記錄的評估津貼與我們在2005 年12 月31 日記錄的淨遞延稅資產產生的，這是由於公司改變了前景。

The third quarter net losses also reflected the ongoing remediation costs in connection with our ERP system, our supply chain disruptions, and special customer accommodations.

第三季淨虧損也反映了與我們的 ERP 系統、供應鏈中斷和特殊客戶住宿相關的持續補救成本。

In line was our earlier announcement, net losses also reflected $1.7 million of costs associated with our relocation to Rock Hill, and stepped-up research and development costs in connection with our recently announced V-Flash desktop modeler, and certain other rapid manufacturing developments.

與我們先前的公告一致，淨虧損也反映了與我們搬遷到Rock Hill 相關的170 萬美元成本，以及與我們最近推出的V-Flash 桌面建模器以及某些其他快速製造開發相關的研發成本的增加。

As we have already mentioned, in all of our previous and frequent communications, during the third quarter we continue to experience a number of challenges relating to our ERP implementation, the startup of our recently outsourced third-party logistics and warehousing activities, and the relocation of our operations, including the need to hire and train new employees who are not yet fully experienced with our new ERP system or fully familiar with our business.

正如我們已經提到的，在我們之前所有頻繁的溝通中，第三季度我們繼續遇到與 ERP 實施、最近外包的第三方物流和倉儲活動的啟動以及搬遷相關的許多挑戰我們的運營，包括需要僱用和培訓尚未完全熟悉我們的新ERP 系統或完全熟悉我們的業務的新員工。

As a result, we encountered disruptions in processing transactions in the system that affected our ability to enter and process customer orders, procure and manage inventory, schedule orders for production and shipping, and invoicing finished products to customers orders.

因此，我們在處理系統交易時遇到了中斷，影響了我們輸入和處理客戶訂單、採購和管理庫存、安排生產和運輸訂單以及根據客戶訂單開具成品發票的能力。

As we shared with you earlier in January, we believe that we have made significant progress in remediating the root causes of this disruption, and fully expect the ERP system to ultimately improve our business processes, efficiency and control environment.

正如我們在一月份早些時候與您分享的那樣，我們相信我們在解決造成這種破壞的根本原因方面已經取得了重大進展，並完全期望ERP 系統最終能夠改善我們的業務流程、效率和控制環境。

As we have told you over the past several months, we also experienced significant disruptions in our supply chain activities that led to shortages of parts and materials, resulting in loss of parts and materials revenue, a consequent loss of service revenue, higher service and expediting costs, and the need to compensate customers who were adversely affected by these shortages.

正如我們在過去幾個月中告訴您的那樣，我們的供應鏈活動也經歷了嚴重中斷，導致零件和材料短缺，導致零件和材料收入損失，從而導致服務收入損失，更高的服務和加快速度成本，以及補償受到這些短缺不利影響的客戶的需求。

These shortages also delayed shipments of finished products.

這些短缺也延遲了成品的出貨。

As we ended the third quarter our new, sophisticated -- I am sorry, as we entered the third quarter our new, sophisticated advanced manufacturing capable Sinterstation Pro and Viper Pro system, with their broader range of capabilities, continue to require extensive commissioning and training to achieve operating stability and operating potential for some customers.

當我們第三季結束時，我們新的、複雜的——我很抱歉，當我們進入第三季度時，我們新的、複雜的先進製造能力的Sinterstation Pro 和Viper Pro 系統憑藉其更廣泛的功能，繼續需要廣泛的調試和培訓為部分客戶實現營運穩定性和經營潛力。

As a result of the high volume of sales of this system that we've enjoyed in recent quarters, and the continued need for additional commissioning and training time, we also experienced field service resource constraint and equipment stability issues that delayed the startup of some systems and impacted our effectiveness in servicing our higher volume 3D Printing segment.

由於近幾個季度該系統的銷量很高，並且持續需要額外的調試和培訓時間，我們還遇到了現場服務資源限制和設備穩定性問題，導致某些系統的啟動延遲並影響了我們為大批量3D 列印領域提供服務的效率。

During the third quarter, we continued to address all of these issues, and believe that we have made meaningful progress by working closely with our customers to resolve system stability issues in a mutually beneficial manner.

在第三季度，我們繼續解決所有這些問題，並相信透過與客戶密切合作，以互利的方式解決系統穩定性問題，我們已經取得了有意義的進展。

We also intensified our own internal training and provided more extensive customer training, supporting installation activities than the services we traditionally provided with our legacy system.

我們也加強了自己的內部培訓，並提供了更廣泛的客戶培訓，支援安裝活動，而不是我們傳統上為遺留系統提供的服務。

While we encountered higher warranty related costs that adversely affected our gross profit in the third quarter and first nine months of '06, we believe that the remediation efforts we have undertaken throughout the third quarter, and since that time, resulted in improved systems and organizational performance since the end of the third quarter.

雖然我們遇到了更高的保固相關成本，對第三季和06 年前九個月的毛利產生了不利影響，但我們相信，我們在整個第三季以及自那時以來所做的補救工作，導致了系統和組織的改進三季度末以來的業績。

Consequently, we expect to be able to return to normalized operating conditions as we complete the implementation of our corrective action plan.

因此，我們期望在完成糾正行動計畫的實施後能夠恢復正常的營運條件。

We have also identified and disclosed in our Form 10-Q several of the material weaknesses in second quarter '06 and third quarter '06.

我們也在 10-Q 表格中確定並揭露了 06 年第二季和 06 年第三季的一些重大缺陷。

And we are diligently working to remedy these disruptions.

我們正在努力糾正這些幹擾。

We proudly encourage anyone who is interested in a detailed analysis of our third quarter results and the restatement to read our Form 10-Q for the quarter ended September 30, '06, which was filed earlier this morning with the Securities and Exchange Commission.

我們自豪地鼓勵任何對我們第三季度業績和重述的詳細分析感興趣的人閱讀我們截至2006 年9 月30 日的季度的10-Q 表格，該表格於今天上午早些時候向美國證券交易委員會提交。

Despite the disappointments that we encountered in the second and third quarters of '06, we firmly believe that we have made significant progress in many areas, as we continue to invest in infrastructure, products, people and capabilities to achieve our strategic objectives.

儘管我們在06 年第二季和第三季遇到了令人失望的情況，但我們堅信，隨著我們繼續投資於基礎設施、產品、人員和能力以實現我們的戰略目標，我們在許多領域都取得了重大進展。

Specifically we believe that we have made good progress in resolving the causes of the business disruptions that have adversely affected our operations since the second quarter of this year.

具體來說，我們認為，自今年第二季以來，我們在解決業務中斷的原因方面取得了良好進展，這些業務中斷對我們的營運產生了不利影響。

And we further believe that we have already incurred most of the cost for this strategic initiative.

我們進一步相信，我們已經承擔了這項策略舉措的大部分成本。

We also believe that our continuing high level of backlog in the neighborhood of $13 million at the end of September 30 '06 suggests that the demand for our product remains strong.

我們也相信，截至 2006 年 9 月 30 日，我們的積壓訂單持續保持在 1,300 萬美元左右的高水平，這表明對我們產品的需求仍然強勁。

And consistent with the positive growth in our materials revenue that we experienced over the past several quarters, we are delighted to report that our materials revenue continued its strong double-digit growth during the third quarter of '06, increasing some 23% over the third quarter of '05.

與過去幾季我們的材料收入的正增長一致，我們很高興地報告，我們的材料收入在 06 年第三季度繼續保持兩位數的強勁增長，比第三季度增長約 23% 05 年季度。

We believe that trend suggests that we're already experiencing early traction from our newly integrated materials packaging and delivery system.

我們相信，這一趨勢表明我們已經從新整合的材料包裝和交付系統中感受到了早期的吸引力。

In view of the losses that we reported today it is important to note that since the beginning of '06 we have funded approximately $17 million of cash balances to support our strategic initiatives, which include our relocation to Rock Hill, South Carolina, our new ERP system, and the inventory levels we previously disclosed.

鑑於我們今天報告的損失，值得注意的是，自 06 年初以來，我們已經提供了大約 1700 萬美元的現金餘額來支持我們的戰略舉措，其中包括我們搬遷到南卡羅來納州羅克希爾、我們的新 ERP系統，以及我們先前揭露的庫存水準。

Regarding our liquidity at the end of the third quarter of '06, we had over $5 million of unrestricted cash recorded on our consolidated balance sheet.

關於我們 06 年第三季末的流動性，我們的合併資產負債表上記錄了超過 500 萬美元的不受限制的現金。

Unrestricted cash increased to approximately $14 million at December 31, '06.

截至 2006 年 12 月 31 日，不受限制的現金增加至約 1,400 萬美元。

And this amount included approximately $8 million from drawings under our $15 million revolver credit line with Silicon Valley Bank, which was recently amended on the basis that we believe to be beneficial.

這筆金額包括我們向矽谷銀行提供的 1500 萬美元左輪信貸額度下提取的約 800 萬美元，該額度最近根據我們認為有利的基礎進行了修改。

We believe that both our cash management and our working capital management improved during the fourth quarter of '06.

我們相信我們的現金管理和營運資金管理在 06 年第四季都有所改善。

We're heartened by the steady progress that we're making.

我們對所取得的穩定進展感到鼓舞。

And in fact in the course of the third quarter we reduced our days sales outstanding from 101 days at June 30 to 78 days at September 30.

事實上，在第三季度，我們的應收帳款天數從 6 月 30 日的 101 天減少到 9 月 30 日的 78 天。

In fact, we have believe that as we make further improvements in our working capital management, in future periods we expect to return to our historical levels of performance in accounts receivable days outstanding and in inventory days on hand.

事實上，我們相信，隨著我們進一步改善營運資金管理，我們預計在未來一段時間內，應收帳款週轉天數和庫存週轉天數將恢復到歷史水準。

As you know on November 17, '06 we also completed the consolidation of our new global headquarters to Rock Hill, South Carolina.

如您所知，2006 年 11 月 17 日，我們也完成了將新的全球總部整合到南卡羅來納州羅克山的工作。

The successful move of this facility represents a significant milestone for our Company, and provides us with the right platform to achieve our long-term objectives.

該設施的成功搬遷對我們公司來說是一個重要的里程碑，並為我們提供了實現長期目標的合適平台。

A few other significant advances I would like to share with you this morning.

今天早上我想與大家分享其他一些重大進展。

These include the progress report on the sale of our Grand Junction, Colorado facility.

其中包括我們科羅拉多州大章克申工廠的銷售進度報告。

As we shared with you previously, in early November we entered into an agreement to sell our Grand Junction facility for cash, a purchase price of $7 million, which is far in excess of its net book value.

正如我們之前與您分享的，11 月初，我們簽訂了一項協議，以現金出售 Grand Junction 設施，購買價格為 700 萬美元，遠遠超過其賬面淨值。

We expect that our potential buyer will satisfy certain customary conditions and conclude the sale in the first quarter of '07.

我們預計我們的潛在買家將滿足某些慣例條件並在 07 年第一季完成銷售。

As you may recall, in June we announced that all of our $15.3 million of preferred stock was converted into common stock, and as a result going forward we expect to save $1.6 million annually from discontinuation of the preferred dividend.

您可能還記得，6 月我們宣布將所有 1530 萬美元的優先股轉換為普通股，因此，我們預計每年可以透過停止優先股股息節省 160 萬美元。

I also would like to call to your attention the $7 million of our 6% convertible subordinate debentures were converted voluntarily into common stock late in the third quarter, reducing the outstanding amount of these debentures to $15.4 million.

我還想提請您注意，我們的 700 萬美元 6% 可轉換次級債券在第三季末自願轉換為普通股，從而將這些債券的未償還金額減少到 1,540 萬美元。

We expect to save some $420,000 annually in interest costs as a result of this conversion.

透過此次轉換，我們預計每年可節省約 42 萬美元的利息成本。

Over the past few months we also entered into an agreement to purchase our Rock Hill, South Carolina global headquarters facilities for $10.1 million, subject to certain customary conditions.

在過去的幾個月裡，我們還簽訂了一項協議，以 1010 萬美元的價格購買南卡羅來納州羅克山的全球總部設施，但須滿足某些慣例條件。

We are currently working to secure financing for this purchase.

我們目前正在努力確保此次購買的融資。

I will now turn the presentation over to Fred Jones for a more detailed review of the financial restatements, as well as a detailed review of our third quarter and first nine months financial review.

我現在將把簡報交給 Fred Jones，以便對財務重述進行更詳細的審查，並對我們第三季和前九個月的財務審查進行詳細審查。

Good morning everyone.

大家，早安。

Earlier this morning we filed our quarterly report on Form 10-Q for the third quarter of 2006 with the SEC.

今天早些時候，我們向 SEC 提交了 2006 年第三季 10-Q 表格季度報告。

Besides the typical reporting for the quarter and the first nine months of this year of '06, this 10-Q has extensive disclosure regarding the nature of the corrections that we made in prior periods.

除了 06 年季度和今年前九個月的典型報告外，本 10-Q 還廣泛披露了我們在前期所做的更正的性質。

It discloses in tabular form the prior and restated income statements, balance sheet and cash flows for 2004, for each quarter of 2005, and for the first two quarters of 2006.

它以表格形式披露了 2004 年、2005 年每個季度以及 2006 年前兩個季度的先前和重述的損益表、資產負債表和現金流量。

I'm just going to touch on the magnitude of the changes for those prior periods.

我只想談談之前時期的變化幅度。

Our restatement primarily affected our 2006 financial statement.

我們的重述主要影響我們 2006 年的財務報表。

The impact on 2004 from restating our operating results led to $0.5 million increase in net income for the full year above the previously reported $1 million of net income.

重述我們的經營業績對 2004 年的影響導致全年淨利潤增加了 50 萬美元，高於先前報告的 100 萬美元的淨利潤。

For 2005 the restatement led to lower net income in each quarter of 2005, and an aggregate $0.7 million reduction in net income for the full year below the previously reported $8.4 million of net income.

2005 年的重述導致 2005 年每季的淨利下降，全年淨利總計減少 70 萬美元，低於先前報告的 840 萬美元的淨利。

Restating our operating results for the first two quarters of 2006 led to a $0.7 million increase in the net loss for the first quarter of 2006 above the previously reported $1.2 million net loss, and a $2.6 million increase in the net loss in the second quarter above the previously reported $8.9 million net loss.

重述2006 年前兩季的經營業績導致2006 年第一季的淨虧損比之前報告的120 萬美元的淨虧損增加了70 萬美元，而第二季的淨虧損比之前報告的120 萬美元增加了260 萬美元。此前報告的淨虧損為 890 萬美元。

As we previously disclosed, and as you can see on slide 12, the errors we recently identified related to 2006 primarily include invoicing errors and errors in recording customer credits and deposits, and to a lesser extent, errors in adjustments identified in reconciling fixed asset and construction in progress accounts and related depreciation, and adjustments resulting for the reconciliation of several income and expense accounts in accrued liabilities.

正如我們之前所揭露的，正如您在投影片12 中所看到的，我們最近發現的與2006 年相關的錯誤主要包括發票錯誤和記錄客戶信貸和存款的錯誤，以及在較小程度上調節固定資產和存款時發現的調整錯誤。在建工程帳戶和相關折舊，以及為核對應計負債中若干收入和支出帳戶而進行的調整。

The errors identified with respect to the 2004 and 2005 financial statements primarily related to the effect on those years of the errors we identified in 2006, and also includes previously identified unadjusted audit differences that were not considered to be material when they were first identified, but were required to be recorded in light of the restatement.

2004 年和2005 年財務報表中發現的錯誤主要與我們在2006 年發現的錯誤對這些年份的影響有關，還包括先前發現的未經調整的審計差異，這些差異在首次發現時被認為不重要，但根據重述要求記錄。

Within a few days we expect to file restated quarterly reports for the first two quarters of 2006 on Forms 10-QA.

幾天之內，我們預計將透過 10-QA 表格提交 2006 年前兩個季度重述的季度報告。

In the meantime, I think you'll find that most of the comparative data you need for those quarters is contained in the 10-Q that we filed this morning.

同時，我認為您會發現這些季度所需的大部分比較數據都包含在我們今天早上提交的 10-Q 中。

I would like to turn now to a review of our financial performance for the first quarter and the first nine months of 2006.

我現在想回顧一下我們 2006 年第一季和前 9 個月的財務表現。

We reported $31.5 million of revenue for the third quarter of 2006, a 2% decrease from last year's third quarter, primarily due to disruptions arising from our ERP system implementation, and the outsourcing of our logistics and warehousing activities, and from the growth challenges incurred as a result of our new SLS and SLA system introductions that led to, among other things, shortages of parts resulting in loss of parts revenue, higher cost of goods sold, and delayed shipments of finished products.

我們報告 2006 年第三季的營收為 3,150 萬美元，比去年第三季下降 2%，這主要是由於我們的 ERP 系統實施、物流和倉儲活動外包以及所面臨的成長挑戰造成的中斷。由於我們引入新的SLS 和SLA 系統，導致零件短缺，從而導致零件收入損失、銷售成本上升以及成品發貨延遲等。

And most of the decline was concentrated in Europe.

下降的大部分集中在歐洲。

However, revenue was 16% higher on a sequential basis than the second quarter this year, reflecting the impact of the corrective action plan we began to implement in July 2006.

然而，今年第二季的營收季增了 16%，這反映了我們從 2006 年 7 月開始實施的糾正行動計畫的影響。

Gross profit for the third quarter declined to $10.7 million, and we will examine that a bit closer in the subsequent slide.

第三季的毛利下降至 1,070 萬美元，我們將在接下來的幻燈片中更仔細地研究這一點。

Operating expenses rose to $19.4 million in the third quarter for the reasons I will discuss in a minute.

第三季營運費用升至 1,940 萬美元，原因我稍後會討論。

Our net loss available to common stockholders in the third quarter of 2006 was $11.3 million versus $0.5 million of net income available to common stockholders in the 2005 quarter as restated.

2006 年第三季普通股股東可獲得的淨虧損為 1,130 萬美元，而 2005 年季度重述的普通股股東可獲得的淨收入為 50 萬美元。

Now this loss includes a $2.5 million non-cash expense we recorded to re-establish evaluation allowance at September 30 against the net deferred tax asset that we recorded at the end of last year.

現在，這項損失包括我們記錄的 250 萬美元非現金費用，用於在 9 月 30 日根據我們去年年底記錄的淨遞延稅資產重新建立評估津貼。

Revenue for the first nine months of 2006 was $92.2 million, a 3% decrease from last year's first nine months as restated.

2006 年前九個月的收入為 9,220 萬美元，比去年重述的前九個月下降了 3%。

This decrease was primarily due to the same disruptions and challenges that affected the third quarter, and again primarily came from Europe.

這一下降主要是由於影響第三季度的同樣的干擾和挑戰，而且主要來自歐洲。

Gross profit for the first nine months of 2006 declined to $30.2 million compared to $41.7 million for the same period in 2005.

2006 年前 9 個月的毛利下降至 3,020 萬美元，而 2005 年同期為 4,170 萬美元。

Total operating expenses increased to $50.5 million in the first nine months of 2006.

2006 年前 9 個月，總營運費用增至 5,050 萬美元。

This increase in operating expenses was due primarily to $5.7 million of severance and restructuring costs related to the relocation of our headquarters to Rock Hill, South Carolina -- and these were generally in line with our previously announced expectations -- $6.2 million of higher selling, general and administrative expenses, and $1.3 million of higher research and development expenses.

營運費用的增加主要是由於與我們總部遷至南卡羅來納州羅克山有關的 570 萬美元遣散費和重組成本，這些費用總體上符合我們先前宣布的預期 - 銷售額增加 620 萬美元，一般和行政費用，以及130 萬美元的較高研發費用。

Research and development expenses reflect our continuing commitment to invest in new product development, such as our recently announced V-Flash product and collaboration on materials development with CIMEX Technologies.

研發費用反映了我們對新產品開發投資的持續承諾，例如我們最近發布的 V-Flash 產品以及與 CIMEX Technologies 在材料開發方面的合作。

The higher selling, general and administrative expenses in both the first nine months and the third quarter resulted mostly from higher consulting expenses, primarily related to our new ERP system, and from the remediation of the control deficiencies that we had previously disclosed, higher bad debt expense, and equity compensation expense related to unvested options.

前 9 個月和第三季銷售、一般和管理費用的增加主要是由於諮詢費用增加（主要與我們的新 ERP 系統相關）以及我們之前披露的控制缺陷的補救、壞賬增加費用，以及與未歸屬選擇權相關的股權補償費用。

Our net loss available to common stockholders in the first nine months of 2006 was $24.7 million, or $1.48 per share on a fully diluted basis.

2006 年前 9 個月，我們普通股股東的淨虧損為 2,470 萬美元，即完全稀釋後每股 1.48 美元。

The gross profit margin for the third quarter decreased from $14.7 million in 2005 as restated to $10.7 million in 2006, reducing the gross profit margin from 46% in last year's third quarter to 34% in this year's third quarter.

第三季的毛利率從2005年重述的1,470萬美元下降到2006年的1,070萬美元，毛利率從去年第三季的46%下降到今年第三季的34%。

The gross profit margin on products was 41% for services.

服務產品毛利率為41%。

The gross margin was 16%.

毛利率為16%。

The gross profit margins were unfavorably affected by the combined effects of lower revenue, the inventory write-off, the ERP-related, and supply chain and logistics disruptions that Abe mentioned earlier, and for special accommodations extended to customers whose orders were delayed by our disruptions, or who encountered stability issues with equipment that our service organization was not able to quickly address as a result of resource constraints on our service organization.

毛利率受到安倍早些時候提到的收入下降、庫存沖銷、ERP相關、供應鏈和物流中斷以及向因我們的訂單延遲而向客戶提供的特殊照顧的綜合影響的不利影響。中斷，或者遇到設備穩定性問題，而由於我們服務組織的資源限制，我們的服務組織無法快速解決。

The inventory write-offs, which are included in cost of sales for the third quarter, primarily consisted of reconciliation adjustments related to fiscal accounts of all inventory globally at September 30, the downward adjustment of in transit inventory related to duplicate or incorrect shipments, for which we were unsuccessful in either securing return of the goods or payment for them, and adjustments to match general ledger balances with subsidiary ledgers.

庫存沖銷計入第三季銷售成本，主要包括與截至 9 月 30 日全球所有庫存財務帳戶相關的對帳調整、與重複或錯誤發貨相關的在途庫存下調、我們未能成功確保貨物退回或付款，以及調整總帳餘額與明細帳餘額。

The gross profit margin decline also includes the unfavorable impacts of recording a credit memoranda for product return and pricing issues in each of the first three quarters.

毛利率下降還包括前三季各季度因產品退貨和定價問題記錄信用備忘錄的不利影響。

Slide 17 identifies some specific items that contributed to increases in our operating costs.

投影片 17 列出了一些導致我們營運成本增加的具體項目。

The $4 million year-over-year increase in SG&A expense is primarily the result of four impacts.

SG&A 費用年增 400 萬美元主要是四個影響的結果。

Half of the increase consists of higher consulting and accounting fees due to our ERP disruptions and restatement process, amortization of stock option expense under FAS 123R, higher bad debt expense, and a variety of other expenses, including expenses associated with the disruptions and growth challenges.

其中一半的成長包括由於我們的ERP 中斷和重述流程而導致的諮詢和會計費用增加、FAS 123R 下的股票選擇權費用攤銷、壞帳費用增加以及各種其他費用，包括與中斷和成長挑戰相關的費用。

The $0.4 million increase in R&D expense year-over-year resulted primarily from the $0.3 million expense associated with our collaboration with CIMEX Technologies for new material development, as well as higher spending on the development of new product, including the recently announced V-Flash desktop modeler.

研發費用年增 40 萬美元，主要是由於我們與 CIMEX Technologies 合作開發新材料而產生的 30 萬美元費用，以及新產品開發支出的增加，包括最近宣布的 V-Flash桌面建模器。

Net cash used in operating activities for the first nine months of 2006 was principally driven by our net loss, which was partially offset by over $10 million of non-cash charges.

2006 年前 9 個月經營活動使用的淨現金主要是由我們的淨虧損造成的，該淨虧損被超過 1,000 萬美元的非現金費用部分抵銷。

All in all, operating activities used $12.3 million of cash.

總共，經營活動使用了 1230 萬美元的現金。

We invested $8.2 million during the first nine months, primarily for purchases of PP&E related to information technology systems and for our corporate headquarters relocation project.

前九個月，我們投資了820萬美元，主要用於採購與資訊科技系統相關的固定資產和公司總部搬遷專案。

An unusually high level of expenditures for us, as we're not a capital intensive business.

我們的支出水準異常高，因為我們不是資本密集型企業。

Financing activities generated $1.7 million of cash, primarily stock option exercise proceeds, partially offset by our last preferred stock dividend prior to the conversion of that security to common stock in June of 2006.

融資活動產生了 170 萬美元現金，主要是股票選擇權行使收益，部分被我們 2006 年 6 月將該證券轉換為普通股之前的最後一次優先股股息所抵銷。

Net cash usage of $19 million reduced cash balances at September 30 to $5.3 million.

截至 9 月 30 日，淨現金使用量為 1,900 萬美元，現金餘額減少至 530 萬美元。

Our strategic initiative outlays and costs associated with the various disruptions we have encountered are abating.

我們的策略計劃支出和與我們遇到的各種幹擾相關的成本正在減少。

And we're getting traction from our cash management and working capital management efforts.

我們的現金管理和營運資本管理工作正在推動我們的發展。

At year-end 2006 our cash balances, exclusive of bank borrowings, were about $1 million higher compared to our September 30, 2006 liquidity levels.

2006 年底，我們的現金餘額（不包括銀行借款）比 2006 年 9 月 30 日的流動性水準高出約 100 萬美元。

On my last slide you can see that the first nine month cash usage was primarily concentrated in the second quarter.

在我的上一張投影片中，您可以看到前九個月的現金使用情況主要集中在第二季。

Inventory investment of $12.3 million was the single largest user of cash, primarily in the second quarter.

1,230 萬美元的庫存投資是最大的單一現金用途，主要發生在第二季。

And we expect inventory levels to return to more normalized levels.

我們預計庫存水準將恢復到更正常的水準。

Purchases of PP&E of $7.7 million were particularly high in the second and third quarters from outlays associated with our relocation to a new facility.

在第二季和第三季度，我們因搬遷至新廠而產生的 PP&E 採購額特別高，達到 770 萬美元。

Severance and restructuring costs aggregated $5.7 million during the first nine months.

前 9 個月的遣散費和重組成本總計 570 萬美元。

These headquarters relocation costs are expected to be incurred almost entirely in 2006, so we do not expect these to be recurring costs in future years.

這些總部搬遷費用預計幾乎全部發生在 2006 年，因此我們預計這些費用在未來幾年不會成為經常性費用。

But we do, however, expect to pay about $800,000 in rental expense on our old Valencia facility until the lease of that building expires at the end of this year.

但我們確實預計將為我們的舊巴倫西亞設施支付約 80 萬美元的租金費用，直至該建築的租約於今年年底到期。

Our investment during the first nine months in our new ERP system used $2.1 million (technical difficulty) cash.

我們在新 ERP 系統的前 9 個月投資使用了 210 萬美元（技術難度）現金。

We also expect that these costs will diminish over the remainder of 2006 and 2007.

我們也預計這些成本在 2006 年剩餘時間和 2007 年將會減少。

A portion of the inventory build has been financed with increased accounts payable, which should be satisfied with future proceeds from sales of inventory.

庫存建設的一部分是透過增加的應付帳款來融資的，這應該可以透過未來銷售庫存的收益來滿足。

Our successful working capital management efforts to reduce DSO, and consequently decreased our receivables investment by $5.5 million.

我們成功的營運資本管理努力減少了 DSO，從而使我們的應收帳款投資減少了 550 萬美元。

All other cash flows aggregated $2.0 million net outlay for the first nine months, although we can see the quarterly amounts have fluctuated.

儘管我們可以看到季度金額有所波動，但前 9 個月所有其他現金流的淨支出總計為 200 萬美元。

The second quarter's other outflows included additional costs related to disruptions, including disruptions associated with our new ERP system implemented that quarter, from customer accommodations, increased R&D spending, and $0.8 million for the last dividend on our former preferred stock.

第二季度的其他資金流出包括與中斷相關的額外成本，包括與該季度實施的新 ERP 系統相關的中斷、客戶住宿、研發支出增加以及我們前優先股最後一次股息的 80 萬美元。

We expect the conversion of that stock in June of last year will save us $1.6 million per year in dividend payments going forward.

我們預計去年 6 月轉換該股票將每年節省 160 萬美元的股息支付。

Looking forward we hope to close in the first quarter this year the sale of our Grand Junction, Colorado facility for $7 million, which we expect will net us approximately $3 million after debt repayments and closing costs, and free an additional $1.2 million of restricted cash.

展望未來，我們希望在今年第一季以700 萬美元的價格完成科羅拉多州大章克申工廠的出售，我們預計在償還債務和成交費用後，我們將淨賺約300 萬美元，並釋放額外的120 萬美元的限制性現金。

I will now turn the presentation back over to Abe for a progress report, and closing remarks.

我現在將把演示轉回給安倍，以獲取進度報告和結束語。

Thank you, Fred.

謝謝你，弗雷德。

Before we begin the question and answer portion of this morning's presentation, I would like to give you a quick update on several of our key growth initiatives, as well as our long-term expectations.

在我們開始今天早上演講的問答部分之前，我想向您簡要介紹我們的幾項關鍵增長計劃以及我們的長期期望。

Regarding our 3D printing growth initiative, we are continuing to extend and grow our 3D printing program and productline.

關於我們的 3D 列印成長計劃，我們正在繼續擴展和發展我們的 3D 列印專案和產品線。

Specifically we're continuing to grow and expand our retailer reseller channels globally, continuing with our focused vertical segment business development.

具體來說，我們將繼續在全球範圍內發展和擴大我們的零售商經銷商管道，繼續我們專注的垂直細分業務發展。

And in line with that, we recently introduced the InVision Dental Pro System, which helps dental labs transition to the digital age.

為此，我們最近推出了 InVision Dental Pro 系統，該系統可幫助牙科實驗室過渡到數位時代。

I'm delighted to share with you today that we have recently shipped our 20th Dental Pro system.

我今天很高興與您分享，我們最近發貨了第 20 個 Dental Pro 系統。

To support our growing installed base during the second quarter, we announced a new slate of software that we expect to provide numerous productivity and cost savings benefits to our customers.

為了支持我們在第二季度不斷成長的安裝基礎，我們發布了一系列新的軟體，我們希望這些軟體能為我們的客戶提供大量的生產力和成本節約優勢。

And we also introduced two new colors for our low-cost of LD 3-D printer.

我們還為我們的低成本 LD 3-D 列印機推出了兩種新顏色。

And recently we announced that this summer we plan to commercialize a new revolutionary V-Flash desktop modeler with proprietary film transfer technology to be priced at $9,900.

最近我們宣布，今年夏天我們計劃將一款採用專有膠片傳輸技術的新型革命性 V-Flash 桌面建模器商業化，售價為 9,900 美元。

In fact, just two weeks ago at our grand opening in Rock Hill, we unveiled this revolutionary new user-friendly and affordable desktop modeler, the V-Flash.

事實上，就在兩週前，我們在 Rock Hill 盛大開幕時，推出了這款革命性的新型用戶友好型且價格實惠的桌面建模器 V-Flash。

V-Flash modelers represent a new generation of this [rapid] technology in a system that can build SLA-like parts two to four times faster than other 3D printers, at the same affordable price of -- at the affordable price of $9,900.

V-Flash 建模器代表了系統中這種[快速]技術的新一代，該系統可以以比其他 3D 列印機快兩到四倍的速度建造類似 SLA 的零件，而且價格同樣實惠，為 9,900 美元。

This new system is designed with ultimate user-friendliness in mind.

這個新系統的設計考慮到了最終的用戶友好性。

It incorporates plug and play spare parts, user installable assembly, a disposable V-Flash cartridge and [build pad], as well as comprehensive onboard and Web diagnostics.

它包含即插即用備件、用戶可安裝組件、一次性 V-Flash 盒和 [構建墊]，以及全面的板載和 Web 診斷。

We are very excited about this new technology platform, and look forward to taking it to market this summer.

我們對這個新技術平台感到非常興奮，並期待在今年夏天將其推向市場。

Within our growing rapid manufacturing arena we were pleased that during the third quarter and first nine months of '06 that a growing number of our systems were sold into the direct and indirect manufacturing operations.

在我們不斷發展的快速製造領域，我們很高興在 06 年第三季和前九個月中，越來越多的系統被出售給直接和間接製造業務。

We attribute this success to our ability to deliver a more sophisticated and automated manufacturing system, as well as our success in introducing a steady stream of higher performance end use engineered materials and composites.

我們將這一成功歸功於我們提供更複雜和自動化製造系統的能力，以及我們成功引入穩定更高性能的最終用途工程材料和複合材料。

Notwithstanding our short-term costly growing pains, it is abundantly clear that the combination of larger frame SLA and SLS automated manufacturing platforms and new materials is delivering significant new benefits to a growing customer base.

儘管我們在短期內經歷了代價高昂的成長陣痛，但很明顯，更大框架 SLA 和 SLS 自動化製造平台與新材料的結合正在為不斷增長的客戶群帶來顯著的新優勢。

Specifically, customers who adapted our new generation of manufacturing cable systems can now produce much larger parts in a single build cycle.

具體來說，採用我們新一代製造電纜系統的客戶現在可以在單一建造週期內生產更大的零件。

These much larger parts are also much more accurate than has ever been seen before from any additive manufacturing system.

這些更大的零件也比以前任何增材製造系統中看到的都要精確得多。

Which in and of itself opens the door to numerous direct and indirect manufacturing applications, such as tooling, fixturing and more importantly, precision casting.

這本身就為眾多直接和間接製造應用打開了大門，例如模具、夾具，更重要的是精密鑄造。

Accordingly -- sorry, additionally because of the significant build size envelope increase of both of our new from the ground up manufacturing capable systems, the Viper Pro and Center Station Pro, our customers can now build more parts faster, reducing their cost per part and their time to market.

因此，抱歉，此外，由於我們從頭開始製造的新系統 Viper Pro 和 Center Station Pro 的建造尺寸顯著增加，我們的客戶現在可以更快地建造更多零件，從而降低每個零件的成本和他們的上市時間。

And finally, our growing family of high-end engineered materials and composites, in combination with our proprietary smart material packaging and delivery system, provides our customers with unique flexibility and much higher yields.

最後，我們不斷成長的高端工程材料和複合材料系列，與我們專有的智慧材料包裝和輸送系統相結合，為我們的客戶提供了獨特的靈活性和更高的產量。

Reflecting on the progress we have a made to date against our long-term objectives, and the significant infrastructure we have put in place for growth and scalability, we believe that our long-term operating model is achievable.

考慮到我們迄今為止在長期目標方面所取得的進展，以及我們為成長和可擴展性而建立的重要基礎設施，我們相信我們的長期營運模式是可以實現的。

We also believe now with greater confidence that recurring revenue for material sales will represent more than half of our total revenue base in the coming years, as a result of our strategy to develop and commercialize new equipment with integrated material cartridges.

現在，我們更有信心地相信，由於我們開發和商業化帶有整合材料盒的新設備的策略，材料銷售的經常性收入將在未來幾年占我們總收入的一半以上。

While we can't define today with specificity what long-term is, we expect that for a Company like ours with a similar product portfolio of technology and capabilities, with a broad and diverse customer base such as ours, and with annual revenue in the range of $150 million, could deliver the kind of long-term target ratios depicted on slide number 26.

雖然我們今天無法具體定義什麼是長期，但我們預計，對於像我們這樣擁有類似技術和能力產品組合、擁有像我們這樣廣泛而多樣化的客戶群、年收入在1.5 億美元的範圍，可以實現第26 號投影片中所示的長期目標比率。

Consequently, our long-term target operating model remains unchanged.

因此，我們的長期目標營運模式保持不變。

We believe that we're continuing to turn the Company round and place it on a solid, longer-term sustained profitable growth path.

我們相信，我們將繼續扭轉公司局面，使其走上穩固、長期持續獲利成長的道路。

Towards this end, we expect to continue to leverage our strong fundamentals, which include our leading marketplace position, which we continue to strengthen and build through unwavering commitment to technology leadership, our experienced team and organization, our clear customer priorities and guiding principles, our powerful brands, deep customer relations and diverse customer base, our global presence enrich our differentiated product portfolio, our broad patented and proprietary technology platform, our proven record of business development, our healthy pipeline of additional opportunities which we expect will continue to deliver a steady stream of new products, our performance improvement and remediation initiatives, our continued progress on our two significant growth programs, 3D printing and rapid manufacturing, and our fundamental understanding that we're in business to deliver a measurable value to our customers and stockholders.

為此，我們希望繼續利用我們強大的基礎，其中包括我們領先的市場地位，我們透過堅定不移地致力於技術領先地位、我們經驗豐富的團隊和組織、我們明確的客戶優先事項和指導原則、我們的強大的品牌、深厚的客戶關係和多元化的客戶群，我們的全球影響力豐富了我們差異化的產品組合，我們廣泛的專利和專有技術平台，我們良好的業務發展記錄，我們健康的額外機會管道，我們預計這些機會將繼續提供穩定的成長新產品流、我們的績效改進和補救措施、我們在3D 列印和快速製造這兩個重要成長計劃方面的持續進展，以及我們的基本認識：我們的業務是為客戶和股東提供可衡量的價值。

We expect to continue to leverage this strong fundamentals as we transition ourselves from restructuring to profitable growth.

我們期望在從重組轉向獲利成長的過程中繼續利用這一強勁的基本面。

We will now open the call to questions.

我們現在開始提問。

The panel request that you ask one question at a time and then return to the queue, thus allowing others to participate in the Q&A session.

小組要求您一次提出一個問題，然後返回隊列，從而允許其他人參與問答環節。

(OPERATOR INSTRUCTIONS).

（操作員說明）。

Jay Harris, Goldsmith & Harris.

傑·哈里斯，戈德史密斯和哈里斯。

Abe, I wonder if you could put the backlog trend into an appropriate context?

安倍，我想知道您是否可以將積壓趨勢放在適當的背景下？

For instance, can you provide us with a -- for the first three quarters of this year, the amount of business written, as opposed to revenue recorded?

例如，您能否向我們提供今年前三個季度的書面業務量（而不是記錄的收入）？

What do you expect to happen to the level of backlog as we go forward into the December quarter and into '07?

當我們進入 12 月季度和 07 年時，您預計積壓水平會發生什麼變化？

In terms of aggregating backlog and revenues in any given period, I don't have that information handily for you this morning.

就任何特定時期內的積壓訂單和收入的匯總而言，今天早上我無法方便地為您提供這些資訊。

However, what I can tell you, and this is something that we have said on numerous occasions, is that for us the level -- the significant level of backlog is an anomaly.

然而，我可以告訴你的是，這是我們在很多場合說過的話，對我們來說，積壓的水平是一個異常現象。

In the ordinary course of business we do not expect backlog to reach these levels of $13 million exiting a quarter.

在正常業務過程中，我們預計每季的積壓不會達到 1,300 萬美元的水平。

We certainly believe that to a large extent that was A., a reflection of healthy demand and B., also a reflection of our inability to ship everything that we booked.

我們當然相信，在很大程度上，A. 反映了對健康的需求，B. 也反映了我們無法運送我們預訂的所有物品。

And as we progress through more quarters and the business model normalizes again, we will have to see what portion of backlog remains, and to what extent the Company returns to more of its historical operating level, which was devoid of any significant backlog.

隨著我們在更多季度取得進展並且業務模式再次正常化，我們將不得不看看積壓的部分仍然存在，以及公司在多大程度上恢復到其歷史運營水平，而歷史運營水平沒有任何重大積壓。

What if you got an order on the 15th of the last quarter of the month for a -- your most complex unit, what is the likelihood that that could be shipped before the end of that quarter?

如果您在該月最後一個季度的 15 日收到了一份訂單——您最複雜的設備，那麼該設備在該季度末之前發貨的可能性有多大？

A lot of it depends on the accuracy of planning, and whether or not we have that item already in inventory.

這在很大程度上取決於計劃的準確性，以及我們是否已經有該商品在庫存中。

Clearly if you had to build a complex system from scratch 15 days before the end of the quarter, that system would not be shipped in that quarter.

顯然，如果您必須在季度結束前 15 天從頭開始建立一個複雜的系統，那麼該系統將不會在該季度發貨。

You plan to operate with a certain level of inventory of each of your systems?

您計劃在每個系統的庫存達到一定水準的情況下進行操作嗎？

We have always operated with a certain level of inventory for all of our systems.

我們的所有系統始終保持一定水準的庫存。

And what got us disrupted in the last few quarters was A., the transactional interruptions that we experienced with our ERP system.

在過去幾季中，讓我們受到干擾的是 A.，我們在 ERP 系統中遇到的交易中斷。

And moreover, some of the transactional interruptions that we experienced in our supply chain that actually resulted in some parts shortages, which prevented us, amongst other things, from completing certain systems on time.

此外，我們在供應鏈中經歷的一些交易中斷實際上導致了一些零件短缺，這使我們無法按時完成某些系統。

Well then could you put together --?

那你能把──？

I think in deference to other callers, let's give somebody else a chance.

我認為，為了尊重其他來電者，讓我們給其他人一個機會。

And I will be happy to answer more questions later.

我稍後將很樂意回答更多問題。

Eric Martinuzzi, Craig-Hallum.

艾瑞克·馬丁努齊，克雷格·哈勒姆。

The revenue expectation for Q4, now that we're a month after the quarter has closed, could you give us a range for Q4 revenue?

第四季的營收預期，現在已經是季度結束後一個月了，您能給我們一個第四季營收的範圍嗎？

And then if you could, some clarity on the makeup among the three product lines?

如果可以的話，能否澄清一下這三個產品線的組成？

Not this morning.

不是今天早上。

This morning we're just discussing the 10-Q for the third quarter that we filed.

今天早上我們只是討論我們提交的第三季的 10-Q。

And the best that I could do this morning was to tell you that we expected the improvements trends that we exited the third quarter with on revenue to continue in the fourth quarter.

今天早上我能做的就是告訴你們，我們預計第三季結束後營收的改善趨勢將在第四季持續下去。

But I can't give you any more color on the fourth quarter this morning.

但今天早上我無法為您提供有關第四季度的更多資訊。

Maybe on the nine months that you reported.

也許是在你報告的九個月裡。

We have a double-digit decline for the nine months versus the restated '05.

與 05 年重述的數據相比，這九個月的跌幅達到了兩位數。

I imagine there is a number of moving parts with some successes and some disappointments in that.

我想有很多活動的部分，其中有一些成功，也有一些失望。

Could you talked about maybe some of the system successes that you are seeing just nine months '06 versus nine months '05?

您能否談談您在 06 年僅 9 個月與 05 年 9 個月所看到的一些系統成功？

Remember that '06 was the year that we basically took some bold steps in pulling the plug on certain systems, discontinuation of the certain systems and upgrades.

請記住，06 年我們基本上採取了一些大膽的步驟，停止某些系統、停止某些系統並進行升級。

And so that the success stories in '06 really come from the new system, once we got past the initial teething problem.

因此，一旦我們克服了最初的初期問題，06 年的成功故事就真正來自於新系統。

It comes from broader and deeper penetration into certain verticals, primarily in jewelry, and more recently kind of early steps into digital dentistry.

它來自於對某些垂直領域更廣泛、更深入的滲透，主要是珠寶領域，以及最近進入數位牙科的早期步驟。

And it comes to a large extent from shipping more and more of our large systems into what we consider to be direct and indirect manufacturing applications.

這在很大程度上來自於將越來越多的大型系統運送到我們認為是直接和間接的製造應用中。

The biggest success story for the year in our mind is the materials story.

我們心目中今年最大的成功故事就是材料故事。

Because notwithstanding all of our disruptions, the material revenue continued to grow by healthy double-digits.

因為儘管我們遇到了所有的干擾，但材料收入仍然以兩位數的健康成長。

And we believe that that is a combination of some of the exciting new materials that the Company was able to develop in recent periods.

我們相信，這是該公司近期能夠開發的一些令人興奮的新材料的結合。

And the early traction that we're getting from the integrated cartridge feature that we put into our newer systems.

我們從整合式墨盒功能中獲得了早期的吸引力，並將其放入新系統中。

Cliff Ransom, Ransom Research, Inc.

克里夫·蘭塞姆，蘭塞姆研究公司

Just a housekeeping question.

只是一個家政問題。

Do you have an anticipated release date for your fourth quarter numbers?

您有第四季資料的預計發布日期嗎？

Naturally we do, but we're not in a position to announce that this morning.

我們當然會這樣做，但今天早上我們無法宣布這一點。

The bigger question goes to kind of the causality, if you will, of the operating disruptions.

如果你願意的話，更大的問題在於營運中斷之間的因果關係。

Can you give us more granularity there?

您能給我們更詳細的資訊嗎？

I think we understand the issue of invoicing.

我想我們了解發票問題。

But what I'm not quite sure I understand the issue that is ERP-related.

但我不太確定我是否理解與 ERP 相關的問題。

And I think I understand the issue on supply chain disruptions.

我想我理解供應鏈中斷的問題。

But I'm not really sure I understand the interlinkage of new SLA and the new Sintering machine and the kind of reaching stability.

但我不太確定我是否理解新 SLA 和新燒結機之間的相互聯繫以及達到穩定性的方式。

Was that because those were new machines, or because you -- and had -- I will end this question -- see what I'm trying to get at?

是因為這些是新機器，還是因為你——而我將結束這個問題——明白我想要得到什麼？

I'm trying to get whether the teething problems, as you call it, are unusual and you just didn't have enough field people to adjust to them?

我想知道您所說的初期問題是否不尋常，而您只是沒有足夠的現場人員來適應這些問題？

Or was the teething problems bigger, and where do we stand today?

或者說初期的問題更大，我們今天的處境如何？

No, remember that we're sitting here today some four months after the end of the third quarter, just to put things in perspective.

不，請記住，我們今天在第三季結束大約四個月後坐在這裡，只是為了正確看待事情。

And remember that throughout the second and third quarter we talked about some of the teething problems and system stability issues that we experienced with our new systems that emanated from lack of training.

請記住，在整個第二和第三季度，我們討論了由於缺乏培訓而在新系統中遇到的一些初期問題和系統穩定性問題。

We found ourselves flat footed, if you will, in the training preparation that we invested in our own field engineers as they began to install and service these more complex systems.

當我們自己的現場工程師開始安裝和維修這些更複雜的系統時，我們發現自己措手不及，如果你願意的話，我們對自己的現場工程師進行了培訓準備。

More training requirements on the part of certain customers that were early adopters.

對某些早期採用者的客戶提出了更多的培訓要求。

And some out of box teething quality issues which we experienced with the new machines.

我們在使用新機器時遇到了一些開箱即用的品質問題。

In the course of the second and third quarters we have intensified training of our own personnel.

第二季和第三季我們加強了對自身人員的訓練。

We intensified training of our outsourced assemblers.

我們加強了對外包裝配人員的訓練。

We have intensified our quality control program.

我們加強了品質控制計劃。

We have done more final system checks and training on-site with our own people and customers and our assemblers.

我們與我們自己的員工、客戶以及我們的組裝商一起進行了更多的最終系統檢查和現場培訓。

And we believe that we have made significant progress in remediating both the training and the systems stability issues as we exited the third quarter.

我們相信，隨著第三季的結束，我們在修復培訓和系統穩定性問題方面取得了重大進展。

Does that mean it ended?

這是否意味著結束了？

It means that for all intents and purposes we made significant progress.

這意味著無論出於何種意圖和目的，我們都取得了重大進展。

There are always -- with complex systems there are always potential issues, but to the best of our knowledge and experience to date, we believe that as we exited the third quarter we remediated all known items.

複雜的系統總是存在潛在的問題，但就我們迄今為止的知識和經驗而言，我們相信，在第三季結束時，我們修復了所有已知的問題。

Troy Jensen, Piper Jaffray.

特洛伊·詹森，派珀·賈弗雷。

A quick question for Fred.

問弗雷德一個簡單的問題。

I believe you said something on your turn of the call about some of the convertible debt got called this quarter.

我相信你在輪到你的電話時說了一些關於本季被調用的一些可轉換債務的內容。

It that correct?

是這樣正確的嗎？

And so, could you just help us out with how much stock that equates to?

那麼，您能幫我們算一下相當於多少庫存嗎？

Yes, in the third quarter about $7 million, in fact exactly, $7 million of the 6% convertible subordinated debentures voluntarily converted to common stock.

是的，第三季大約有 700 萬美元，實際上是 6% 可轉換次級債券中的 700 萬美元自願轉換為普通股。

The number of shares -- let me get back to you on that in just a moment.

股份數量－讓我稍後再回覆您。

I don't have that at my fingertips.

我手邊沒有這個。

(multiple speakers) somewhere around 10?

（多位發言者）約 10 位？

A little less than 700,000 shares.

略低於70萬股。

It was a 1018 conversion.

這是1018轉換。

Are you guys inclined to call the rest of that, so that your filing is up to speed?

你們是否願意調用其餘部分，以便您的歸檔能夠加快速度？

I think that now that our filings are current and we are beyond some of the strategic initiatives that we have put in place, we will take a hard look at other opportunities to improve our overall operating posture.

我認為，既然我們的備案文件已經生效，並且我們已經超越了我們已經實施的一些策略舉措，我們將認真尋找其他機會來改善我們的整體營運狀況。

Okay.

好的。

Good luck in '07 guys.

祝大家07年好運。

Dennis Wassung, Canaccord Adams.

丹尼斯·瓦松，卡納科德·亞當斯。

A question for you, Abe.

阿部，問你一個問題。

You talked about expectation to return to, call it, normalized performance.

您談到了回歸正常化表現的期望。

And I'm just curious if you could put any parameters around that and just discuss some of the issues surrounding the new products.

我只是好奇你是否可以對此進行一些參數並討論一些與新產品相關的問題。

I was just wondering how far are we away from what you would call normalized performance?

我只是想知道我們離所謂的標準化表現還有多遠？

And if you can give us any confidence that 2007 isn't going to be impacted by a lot of these issues we have been talking about, whether it is ERP growing pains, the like?

如果您能讓我們相信 2007 年不會受到我們一直在談論的許多問題的影響，是否是 ERP 成長的煩惱等？

As we said in the last few months in connection with the third quarter, even before we could give you the final numbers, we shared with you our ranges and expectations.

正如我們在過去幾個月中就第三季度所說的那樣，甚至在我們向您提供最終數字之前，我們就與您分享了我們的範圍和期望。

And as we also conveyed to you during the investor day at our new Rock Hill facility a couple of weeks ago, we believe that many of the these disruptions are largely behind us.

正如我們在幾週前在羅克山新工廠舉行的投資者日向您傳達的那樣，我們相信許多幹擾基本上已經成為過去。

And that we're making good progress on remediating the residual stuff that is still creating some static and noise.

我們在修復仍產生一些靜電和噪音的殘留物方面取得了良好進展。

We also shared with you that we have certain confidence in our ability to return to what we consider to be a normalized operating conditions because of a few things.

我們也與您分享，由於一些原因，我們對恢復到我們認為的正常運作條件的能力有一定的信心。

One is our average selling prices are holding and/or improving.

一是我們的平均售價維持不變和/或有所改善。

Two, there are no fundamental changes in our cost of goods structure going forward, absent some of these friction costs and special accommodations.

第二，如果沒有一些摩擦成本和特殊便利，我們的商品成本結構未來不會發生根本性變化。

And three, and most notably, the underlying growth engine here is material, and materials are continuing to perform superbly, even during the most disruptive period that we underwent during the second and third quarter.

第三，最值得注意的是，這裡的潛在成長引擎是材料，即使在第二和第三季我們經歷的最具破壞性的時期，材料也繼續表現出色。

And so based on the fact that selling prices are in pretty good shape, based on the fact that our fundamental cost of goods structure has not changed, based on the fact that we're making good progress with materials, and based on the strong market acceptance of all these new products which was demonstrated by the type of backlog exiting the third quarter, we are somewhat optimistic about our ability to return to normalized operations once the dust settles on all these disruptions.

因此，基於銷售價格狀況良好的事實，基於我們的基本商品成本結構沒有改變的事實，基於我們在材料方面取得良好進展的事實，以及基於強勁的市場這一事實第三季度退出的積壓訂單類型證明了所有這些新產品的接受度，我們對一旦所有這些幹擾塵埃落定後恢復正常運作的能力有些樂觀。

Jay Harris, Goldsmith & Harris.

傑·哈里斯，戈德史密斯和哈里斯。

What do you think your ongoing operations as we enter 2007 ought to be in terms of gross margin and operating expenses?

進入 2007 年，您認為您的持續營運的毛利率和營運費用應該是多少？

I think that we like to achieve, and what we are working towards achieving, is nicely summarized in our long-term operating model.

我認為我們喜歡實現的目標，以及我們正在努力實現的目標，在我們的長期營運模式中得到了很好的總結。

Which we said this morning in our minds remain unchanged.

我們今天早上所說的話在我們心中仍然沒有改變。

We think it is achievable.

我們認為這是可以實現的。

Can't pinpoint and tell you exactly when, but as we exited '06 and reflected on where we are, and what we have to work with today, including scalable infrastructure, including the new products that were either recently launched or the ones that we announced to be available, like the V-Flash desktop modeler, we believe that the operating ratios that are in our longer-term operating model are achievable.

無法準確地告訴您具體時間，但當我們退出 06 年並反思我們所處的位置以及我們今天必須處理的內容時，包括可擴展的基礎設施，包括最近推出的新產品或我們已經推出的產品與V-Flash 桌面建模器一樣，我們相信我們的長期營運模型中的營運比率是可以實現的。

And that is what we are working towards.

這就是我們正在努力的方向。

[Mike Veranacchi], [Rananor Capital].

[邁克·維拉納基]，[拉納諾資本]。

I will make this pretty simple.

我會讓這變得非常簡單。

Can I get an idea of what the diluted share count will be for '07?

我能否了解 07 年稀釋後的股票數量是多少？

There is -- just turning to the reconciliation that we put at the back of the earnings release here.

有 - 只是轉向我們在收益發布後面進行的調節。

(indiscernible).

（聽不清楚）。

No, because part of it is a function of the earnings.

不，因為其中一部分是收入的函數。

Right.

正確的。

Assuming you guys make money in the quarter.

假設你們本季賺錢。

Is it fair to use that 19.1 on the December -- or the September 10-Q, or is that not a good number?

使用 12 月或 9 月 10-Q 的 19.1 是否公平，或者這不是一個好數字？

I think, as I recall, it is about 20, 21 million is the fully diluted, if you counted all the options.

我想，我記得，如果你把所有的選項都算進去的話，完全稀釋的話大約是20、2100萬。

And fully converted is 6% of convertible subordinated debentures.

全部轉換為可轉換次級債券的6%。

The 6% debentures, they are about 2,196,000 shares of common stock that are issuable upon their conversion, at least as of last September 30.

6% 的債券約為 2,196,000 股普通股，至少截至去年 9 月 30 日，轉換後可發行。

And so that is the maximum dilution from them.

這就是它們的最大稀釋度。

And then we have some stock options, and think in terms of maybe 1 million or so shares related to them.

然後我們有一些股票選擇權，大概有 100 萬股左右與之相關的股票。

That's ballpark enough.

這已經足夠了。

One other, I believe, quick one.

我相信，還有另外一個，很快的。

You had initially said on the call that as of 12/31 you had $14 million of unrestricted cash, and you had drawn $8 million additional on that revolver.

您最初在電話中表示，截至 12 月 31 日，您擁有 1400 萬美元的非限制性現金，您還從那支左輪手槍中提取了 800 萬美元。

It looks like for the fourth quarter we're looking at free cash flow of like $1 million.

看起來第四季我們的自由現金流約為 100 萬美元。

Is that what you were trying to get?

這就是你想要得到的嗎？

Yes, in fact, I mentioned that our cash net of the bank borrowing was about $1 million higher than it was at the end of the third quarter.

是的，事實上，我提到我們扣除銀行借款後的現金淨額比第三季末高出約 100 萬美元。

I guess I spaced out on that part.

我想我在那部分上發呆了。

We think that is important, because those is dramatically different than the prior quarter or two.

我們認為這很重要，因為這些與前一兩個季度有很大不同。

Cliff Ransom, Ransom Research, Inc.

克里夫·蘭塞姆，蘭塞姆研究公司

I know it is only two weeks later, but the question is when are we going to learn more about the V-Flash?

我知道這只是兩週後的事，但問題是我們什麼時候才能了解有關 V-Flash 的更多資訊？

And the reason that I ask that is there is a certain amount of buzz in the marketplace, competitors grousing, etc.

我之所以這麼問，是因為市場上有一定程度的爭議、競爭對手的抱怨等等。

Right now you have given us a name.

現在你已經給了我們一個名字。

You have put up a preliminary website, and you had given us a preliminary price.

你已經建立了一個初步的網站，並且你已經給了我們一個初步的價格。

But you really haven't told us much about it.

但你確實沒有告訴我們太多。

What is the timetable?

時間表是什麼？

It is a big part of our strategy about creating a buzz.

這是我們製造轟動效應策略的重要組成部分。

And we have had a very, very successful two weeks in terms of beginning to build a future user community, getting thousands of hits on the website, getting people to sign for news flashes, which you can do too, Cliff, if you will on to learn more about it.

我們度過了非常非常成功的兩週，開始建立一個未來的用戶社區，在網站上獲得了數千次點擊，讓人們簽署新聞快訊，你也可以這樣做，克里夫，如果你願意的話了解更多資訊。

I already have.

我已經有了。

The first news flash, as you know, went out the day before yesterday.

如您所知，第一個新聞快報是在前天發布的。

So our whole marketing campaign here is designed to create a lot of excitement and to disclose more information about this technology in kind of weekly increments to make sure that we get an active user group that comes back to the website regularly to learn more about this exciting technology.

因此，我們在這裡的整個行銷活動旨在創造很多興奮點，並以每週增量的方式披露有關該技術的更多信息，以確保我們擁有一個活躍的用戶組，他們定期返回網站以了解有關這項令人興奮的更多資訊科技。

And I'm afraid, Cliff, that all of us are going to learn together.

克里夫，我擔心我們所有人都會一起學習。

We're not going to tell you more than we're telling all of our users.

我們不會告訴您比我們所有用戶更多的資訊。

It is a part of mystery and excitement that we're trying to create.

這是我們試圖創造的神秘和興奮的一部分。

We have reached the allotted time for questions and answers.

我們已經達到了提問和回答的指定時間。

I would out like to turn the call back over to the presenters.

我想把電話轉回給主持人。

We will now close the call.

我們現在將結束通話。

Thank you for joining us today, and for your continuing support of 3D Systems.

感謝您今天加入我們，並感謝您對 3D Systems 的持續支持。

A recording will be available two hours after completion of the call for seven days.

7 天的通話結束後兩小時將提供錄音。

To access the recording, dial 1-800-642-1687 and enter the conference ID number.

若要存取錄音，請撥打 1-800-642-1687 並輸入會議 ID 號碼。

A replay of this webcast will be available approximately 48 hours after the call on 3D Systems' website under the Investor Relations section.

電話會議後約 48 小時，將在 3D Systems 網站的投資者關係部分重播此網路廣播。

This concludes today's 3D Systems conference call and audio webcast.

今天的 3D Systems 電話會議和音訊網路廣播到此結束。

You may now disconnect.

您現在可以斷開連線。