The following discussion and analysis should be read together with the unaudited
condensed consolidated financial statements and the notes thereto included in
Item 1 (the "Financial Statements") of this Quarterly Report on Form 10-Q ("Form
10-Q"). Also, we are subject to a number of risks and uncertainties that may
affect our future performance that are discussed in greater detail in the
sections entitled "Forward-Looking Statements" at the end of this Item 2 and
that are discussed or referred to in Item 1A of Part II of this Form 10-Q.

Business Overview

3D Systems Corporation ("3D Systems" or the "Company" or "we" or "us") is a
holding company incorporated in Delaware in 1993 that markets our products and
services through subsidiaries in North America and South America (collectively
referred to as "Americas"), Europe and the Middle East (collectively referred to
as "EMEA") and the Asia Pacific region ("APAC"). We provide comprehensive 3D
printing and digital manufacturing solutions, including 3D printers for plastics
and metals, materials, software, on demand manufacturing services and digital
design tools. Our solutions support advanced applications in a wide range of
industries and verticals, including healthcare, dental, aerospace, automotive
and durable goods. Our precision healthcare capabilities include simulation;
Virtual Surgical Planning (VSP®)("VSP"); and printing of medical and dental
devices, models, and surgical guides and instruments. We have over 30 years of
experience and expertise which have proven vital to our development of an
ecosystem and end-to-end digital workflow solutions which enable customers to
optimize product designs, transform workflows, bring innovative products to
market and drive new business models.

Customers can use our 3D solutions to design and manufacture complex and unique
parts, eliminate expensive tooling, produce parts locally or in small batches
and reduce lead times and time to market. A growing number of customers are
shifting from prototyping applications to also using 3D printing for production.
We believe this shift will be further driven by our continued advancement and
innovation of 3D printing solutions that improve durability, reliability,
repeatability and total cost of operations.

COVID-19 Pandemic Response



Our top priority during the ongoing COVID-19 pandemic remains the health and
safety of our employees and their families. As global governments institute
restrictions on commercial operations, we are working to ensure our compliance
while also maintaining business continuity for operations.

While no company is immune to global economic challenges, our business portfolio
is well-balanced across end markets and geographies, and includes a high degree
of businesses serving critical sectors such as the healthcare, aerospace and
durable goods. Our balance sheet is well positioned and had $112.8 million of
cash and cash equivalents at March 31, 2020, and a committed revolving credit
facility maturing in 2024 with $42.2 million of credit available at March 31,
2020. We are in discussions with our lenders to ensure continued availability of
funds in future quarters given the prospect of further economic downturn.

Our Employees



We are in the midst of what is a historic deployment of remote work and digital
access to services. Our Crisis Response Steering Committee is highly engaged
with local site leaders across our company in safeguarding the well-being of our
employees and minimizing the spread of this infection. Employees whose tasks can
be done offsite have been instructed to work from home. Approximately 80% of our
total personnel continue to work from home. We only allow employees in our
facilities who are essential to the facilities' operations under best practices
guidelines on maintaining physical distancing, utilizing enhanced cleaning
protocols and usage of personal protective equipment.

Our Customers



We are committed to our customers to enable the support they need to continue
providing vital services and tools. Our global businesses and manufacturing
sites remain operational to meet customer needs during the pandemic in
compliance with the orders and restrictions imposed by government authorities in
each of our locations, and we are working with our customers to meet their
specific shipment needs. While the pandemic has created minor delays on the
inbound supply chain at our partners and our own facilities and both inbound and
outbound logistical challenges, we have been able to identify alternative
solutions such that none of the issues have had a material impact on our ability
to fulfill demand.

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Our Community



Our team has worked hard to connect people in need during this pandemic with
those who can help using digital manufacturing solutions. Together with our
committed partners and customers, we have worked to architect solutions specific
to user needs through a combination of materials, hardware platforms, software
and professional services. This helps to integrate additive manufacturing into
traditional production environments and allows companies to reduce dependency on
the supply chain, manufacture parts internally or make them on demand.
Additionally, the COVID-19 pandemic has created the need for protective measures
for both healthcare professionals and patients resulting from bottlenecks and
shortages in the worldwide supply of personal protective equipment and other
vital medical devices and equipment.

In response. we asked our network of partners, customers and others within the
additive manufacturing community to circumvent the supply chain and help produce
these parts as quickly as possible, to meet the urgent needs of the healthcare
sector as they care for patients and contain the spread of the COVID-19 virus.
We received offers from the community for everything from printer materials,
usage of facilities for printing, engineers' time and expertise and even offers
to fund efforts. We believe that collaboration like this will be key to saving
lives.

We have collaborated with our additive manufacturing community on several
projects to combat the effect of the pandemic. We identified face shields as
being something additive manufacturing could quickly support. We designed and
developed a high efficiency face shield frame. Our printers can output 100 face
shields every 24 hours. We offer this the data file free of charge to the
additive manufacturing community in order to enable others who have an SLS
printer to go from CAD file to production in minutes.

Lonati SpA, a manufacturing company based in Brescia, Italy, deployed our ProX
SLS 6100 printer with DuraForm materials to 3D print more than 100 venturi
ventilator valves for respiratory machines. These valves were designed,
developed, produced and delivered in just three days, evidencing the key
capabilities of our technology and the value proposition of fast response time.
We now have ventilator projects going on all over the world, including in
hospitals, and we are working with the National Health Service in the United
Kingdom on venturi valves that can be deployed quickly and close to the point of
care.

With the recent trend of moving from ventilators to CPAP masks for treatment of
infected patient, we have been involved in the production of CPAP adapter
components, turning what would have been a one to two month project into a
solution on day one, with unit build time of just over one hour and a finished
product the same day.

Finally, as widespread diagnostic testing of COVID-19 begins to ramp, there are
known shortages of diagnostic tools such as nasal swabs. Our customers have been
looking at repurposing dental and industrial Figure 4 printers to 3D print nasal
swabs using dental and industrial grade resins as well as medical grade nylon
12. A single Figure 4 printer has demonstrated the ability to produce over
18,000 swabs per week. We have received interest from both hospitals and OEMs
and are currently engaged in clinical validations with several teams.

These activities demonstrate our thought leadership in additive manufacturing,
our commitment to partnering with our community in combating the pandemic and a
balanced approach to how our industry can quickly address supply and demand
needs amid COVID-19.

Looking Forward



Our operations in Americas, EMEA and APAC expose us to risks associated with
public health crises and epidemics/pandemics, such as the COVID-19 pandemic.
While the COVID-19 pandemic has impacted the Company's reported results for the
first quarter, we are unable to predict the longer term impact that the pandemic
may have on our business, results of operations, financial position or cash
flows. The extent to which our operations may be impacted by the dynamic nature
of the COVID-19 pandemic will depend largely on future developments, which are
highly uncertain and cannot be accurately predicted, including new information
which may emerge concerning the severity of the outbreak and actions by
government authorities to contain the outbreak or treat its impact. Furthermore,
the impacts of a potential worsening of global economic conditions and the
continued disruptions to, and volatility in the financial markets remain
unknown. Additional information regarding COVID-19 risks appears in Part II,
Item 1A, "Risk Factors" of this Form 10-Q.

                                       21
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Summary of First Quarter 2020 Financial Results



Total consolidated revenue for the quarter ended March 31, 2020 decreased by
11.4%, or $17.3 million, to $134.7 million, compared to $152.0 million for the
quarter ended March 31, 2019. These results reflect a 35.5% decrease in printers
revenue and a 12.8% decrease from on demand manufacturing revenue as our
customers purchases were impacted by the COVID-19 pandemic. Materials revenue
decreased 0.1% to $41.4 million.

Healthcare revenue includes sales of products, materials and services for
healthcare-related applications, including simulation, training, planning,
anatomical models, surgical guides and instruments and medical and dental
devices. For the quarter ended March 31, 2020, healthcare revenue decreased by
7.3%, to $46.3 million, and made up 34.4% of total revenue, compared to $50.0
million, or 32.9% of total revenue, for the quarter ended March 31, 2019.

For the quarter ended March 31, 2020, total software revenue from products and
services decreased by 7.7% to $21.2 million, and made up 15.7% of total revenue,
compared to $23.0 million, or 15.1% of total revenue, for the quarter ended
March 31, 2019.

Gross profit for the quarter ended March 31, 2020 decreased by 13.0%, or $8.6
million, to $57.1 million, compared to $65.7 million for the quarter ended March
31, 2019. Gross profit margin for the quarters ended March 31, 2020 and March
31, 2019 was 42.4% and 43.2%, respectively.

Operating expenses for the quarter ended March 31, 2020 decreased by 13.4%, or
$11.7 million, to $75.4 million, compared to $87.0 million for the quarter ended
March 31, 2019. Selling, general and administrative expenses for the quarter
ended March 31, 2020 decreased by 13.8%, or $9.0 million, to $56.1 million,
compared to $65.1 million for the quarter ended March 31, 2019. Research and
development expenses for the quarter ended March 31, 2020 decreased by 12.1%, or
$2.7 million, to $19.2 million, compared to $21.9 million for the quarter ended
March 31, 2019. Lower operating expenses reflect savings from 2019 cost
optimization activities as well as short term cost savings from reduced hiring,
travel, and outside service expenses.

Our operating loss for the quarter ended March 31, 2020 was $18.2 million, compared to an operating loss of $21.3 million for the quarter ended March 31, 2019.



For the quarters ended March 31, 2020 and March 31, 2019, we used $2.3 million
and $15.2 million of cash from operations, respectively, as further discussed
below. In total, our unrestricted cash balance at March 31, 2020 and December
31, 2019, was $112.8 million and $133.7 million, respectively. The lower cash
balance was primarily the result of the $10.0 million payment to acquire the
remaining capital and voting rights of the noncontrolling interest in Brazil,
$4.4 million in capital expenditures, and a $3.2 million negative effect of
exchange rates.

Results of Operations

Comparison of revenue

Due to the relatively high price of certain 3D printers and a corresponding
lengthy selling cycle as well as relatively low unit volume of the higher priced
printers in any particular period, a shift in the timing and concentration of
orders and shipments from one period to another can affect reported revenue in
any given period.

In addition to changes in sales volumes, there are two other primary drivers of
changes in revenue from one period to another: (1) the combined effect of
changes in product mix and average selling prices and (2) the impact of
fluctuations in foreign currencies. As used in this Management's Discussion and
Analysis, the price and mix effects relate to changes in revenue that are not
able to be specifically related to changes in unit volume.
                                       22
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Comparison of revenue by geographic region

The following table sets forth changes in revenue by geographic region for the quarters ended March 31, 2020 and 2019.



Table 1
(Dollars in thousands)                   Americas                                              EMEA                                           Asia Pacific                       Total
Revenue - first quarter 2019    $ 73,703            48.5  %       $ 59,644            39.2  %       $ 18,633            12.3  %       $  151,980           100.0  %
Change in revenue:
Volume                            (8,749)          (11.9) %            927             1.6  %         (5,367)          (28.8) %          (13,189)           (8.7) %
Price/Mix                           (981)           (1.3) %         (3,500)           (5.9) %          1,484             8.0  %           (2,997)           (2.0) %
Foreign currency translation        (171)           (0.2) %           (604)           (1.0) %           (314)           (1.7) %           (1,089)           (0.7) %
Net change                        (9,901)          (13.4) %         (3,177)           (5.3) %         (4,197)          (22.5) %          (17,275)          (11.4) %
Revenue - first quarter 2020    $ 63,802            47.4  %       $ 56,467            41.9  %       $ 14,436            10.7  %       $  134,705           100.0  %



Consolidated revenue decreased by 11.4%, predominantly driven by lower sales
volume in the Americas and Asia Pacific regions driven by plastics printers, on
demand manufacturing, healthcare, and exiting the entertainment business in the
prior year and unfavorable price/mix in the EMEA region driven by
metals/material and healthcare; partially offset by favorable sales volume for
metals printers in the Americas region.

For the quarters ended March 31, 2020 and 2019, revenue from operations outside the U.S. was 54.0% and 53.0% of total revenue, respectively.

Comparison of revenue by class



We earn revenue from the sale of products, materials and services. The products
category includes 3D printers, healthcare simulators and digitizers, software
licenses, 3D scanners and haptic devices. The materials category includes a wide
range of materials to be used with our 3D printers, the majority of which are
proprietary, as well as conventional dental materials. The services category
includes maintenance contracts and services on 3D printers and simulators,
software maintenance, on demand solutions and healthcare services.

The following table sets forth the change in revenue by class for the quarters ended March 31, 2020 and 2019.



Table 2
(Dollars in thousands)                   Products                                            Materials                                          Services                        Total
Revenue - first quarter 2019    $ 50,917            33.5  %       $ 41,430
          27.3  %       $ 59,633            39.2  %       $ 151,980           100.0  %
Change in revenue:
Volume                           (12,045)          (23.7) %          2,021             4.9  %         (3,165)           (5.3) %         (13,189)           (8.7) %
Price/Mix                         (1,307)           (2.6) %         (1,690)           (4.1) %              -               -  %          (2,997)           (2.0) %
Foreign currency translation        (133)           (0.3) %           (384)           (0.9) %           (572)           (1.0) %          (1,089)           (0.7) %
Net change                       (13,485)          (26.5) %            (53)           (0.1) %         (3,737)           (6.3) %         (17,275)          (11.4) %
Revenue - first quarter 2020    $ 37,432            27.8  %       $ 41,377            30.7  %       $ 55,896            41.5  %       $ 134,705           100.0  %



Consolidated revenue decreased 11.4%, predominantly due to lower products volume
which was driven by plastics and software. For the quarters ended March 31, 2020
and 2019, revenue from printers contributed $19.3 million and $29.9 million,
respectively. Software revenue included in the products category, including
scanners and haptic devices, contributed $10.8 million and $12.2 million for the
quarters ended March 31, 2020 and 2019, respectively.

For the quarters ended March 31, 2020 and 2019, revenue from on demand manufacturing services contributed $19.7 million and $22.6 million, respectively. For the quarters ended March 31, 2020 and 2019, software services revenue contributed $10.4 million and $10.8 million, respectively.


                                       23
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Gross profit and gross profit margins

The following table sets forth gross profit and gross profit margins for the quarters ended March 31, 2020 and 2019.



Table 3
                                                           Quarter Ended March 31,
                                                2020                                                         2019                                          Change in Gross Profit                     Change in Gross Profit Margin
                                                       Gross Profit                             Gross Profit                                            

Percentage


(Dollars in thousands)             Gross Profit           Margin           Gross Profit            Margin               $                %                 Points                %
Products                          $     1,422                3.8  %       $      7,750               15.2  %       $ (6,328)           (81.7) %               (11.4)           (75.0) %
Materials                              28,491               68.9  %             28,837               69.6  %           (346)            (1.2) %                (0.7)            (1.0) %
Services                               27,219               48.7  %             29,118               48.8  %         (1,899)            (6.5) %                (0.1)            (0.2) %
Total                             $    57,132               42.4  %       $     65,705               43.2  %       $ (8,573)           (13.0) %                (0.8)            (1.9) %


The decrease in total consolidated gross profit is due to the decrease in product sales, primarily lower sales of printers.

Products gross profit margin decreased primarily due to under absorption of supply chain overhead resulting from lower production, in addition to the impact of the mix of sales. Total gross profit margin reflects favorable mix.

Operating expenses

The following table sets forth the components of operating expenses for the quarters ended March 31, 2020 and 2019.



Table 4
                                                                 Quarter Ended March 31,
                                                       2020                                                        2019                                        Change
(Dollars in thousands)                     Amount              % Revenue            Amount             % Revenue               $                 %
Selling, general and administrative
expenses                               $    56,106                  41.7  %       $ 65,107                  42.8  %       $  (9,001)           (13.8) %
Research and development expenses           19,244                  14.3  %         21,903                  14.4  %          (2,659)           (12.1) %
Total operating expenses               $    75,350                  55.9  %       $ 87,010                  57.2  %       $ (11,660)           (13.4) %



Selling, general and administrative expenses decreased due to lower employee
costs from 2019 cost structure activities as well as short term cost savings
from reduced hiring, travel, and outside service expenses.

Research and development expenses decreased due to lower employee costs from 2019 cost structure activities as well as lower program spend.


                                       24
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Loss from operations

The following table sets forth (loss) income from operations by geographic region for the quarters ended March 31, 2020 and 2019.

Table 5


                                     Quarter Ended March 31,
(Dollars in thousands)                2020              2019
(Loss) income from operations:
Americas                         $    (22,087)      $ (26,832)
EMEA                                    2,228           2,917
Asia Pacific                            1,641           2,610
Total                            $    (18,218)      $ (21,305)

See "Comparison of revenue by geographic region," "Gross profit and gross profit margins" and "Operating expenses" above.

Interest and other (expense) income, net

The following table sets forth the components of interest and other (expense) income, net, for the quarters ended March 31, 2020 and 2019.



Table 6
                                                       Quarter Ended March 31,
(Dollars in thousands)                                2020                  2019
Interest and other (expense) income, net
Foreign exchange (loss) gain                     $      (112)            $ (1,039)
Interest expense, net                                 (1,038)                (576)
Other (expense) income, net                           (1,414)                 414
Total interest and other (expense) income, net   $    (2,564)            $ 

(1,201)





The increase in total interest and other expense, net, for the quarter ended
March 31, 2020 as compared to the quarter ended March 31, 2019 was primarily
driven by losses recorded on investments.
                                       25
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Net loss attributable to 3D Systems

The following table sets forth the primary components of net loss attributable to 3D Systems for the quarters ended March 31, 2020 and 2019.



Table 7
                                                              Quarter Ended March 31,
(Dollars in thousands)                                        2020                 2019              Change
Loss from operations                                     $    (18,218)         $ (21,305)         $   3,087
Other non-operating items:
Interest and other (expense) income, net                       (2,564)            (1,201)            (1,363)
Benefit (provision) for income taxes                            1,858             (1,844)             3,702
Net loss                                                      (18,924)           (24,350)             5,426
Less: net income attributable to noncontrolling
interests                                                           -                 44                (44)

Net loss attributable to 3D Systems Corporation $ (18,924)

$ (24,394) $ 5,470



Weighted average shares, basic and diluted                    114,590       

113,267


Net loss per share - basic and diluted                   $      (0.17)

$ (0.22)





The decrease in net loss for the quarter ended March 31, 2020, as compared to
the quarter ended March 31, 2019, was primarily driven by a decrease in loss
from operations and the tax benefit associated with certain net operating loss
tax carrybacks, partially offset by losses recorded on investments. See "Gross
profit and gross profit margins" and "Operating expenses" above, and Note 12.

Liquidity and Capital Resources



Table 8
                                                                                                                      Change
(Dollars in thousands)                    March 31, 2020          December 31, 2019             $                    %
Cash and cash equivalents                $      112,776          $        133,665          $ (20,889)                 (15.6) %
Accounts receivable, net                        108,769                   109,408               (639)                  (0.6) %
Inventories                                     113,240                   111,106              2,134                    1.9  %
                                                334,785                   354,179            (19,394)
Less:
Current portion of long term debt                 2,506                     2,506                  -                      -  %
Current right of use liabilities                  9,416                     9,569               (153)                  (1.6) %
Accounts payable                                 55,862                    49,851              6,011                   12.1  %
Accrued and other liabilities                    50,803                    63,095            (12,292)                 (19.5) %
                                                118,587                   125,021             (6,434)
Operating working capital                $      216,198          $        229,158          $ (12,960)                  (5.7) %



We assess our liquidity in terms of our ability to generate cash to fund our
operating, investing and financing activities. In doing so, we review and
analyze our current cash on hand, the number of days our sales are outstanding,
inventory turns, capital expenditure commitments and accounts payable turns. Our
cash requirements primarily consist of funding working capital and capital
expenditures.

                                       26
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Cash flow from operations, cash and cash equivalents, and other sources of
liquidity such as bank credit facilities and issuing equity or debt securities,
are expected to be available and sufficient to meet foreseeable cash
requirements. We hold a 5-year $100,000 senior secured term loan facility (the
"Term Facility") and a 5-year $100,000 senior secured revolving credit facility
(the "Revolving Facility" and, together with the Term Facility, the "Senior
Credit Facility") that are intended to support working capital and general
corporate purposes. The Senior Credit Facility is scheduled to mature on
February 26, 2024, at which time all amounts outstanding thereunder will be due
and payable. As of March 31, 2020, we have availability under the Revolving
Facility of $42.2 million. For additional information on the Senior Credit
Facility, see Note 7 to the condensed consolidated financial statements in this
Form 10-Q.

Cash held outside the U.S. at March 31, 2020 was $72.9 million, or 64.7% of
total cash and equivalents, compared to $75.7 million, or 56.5% of total cash
and equivalents at December 31, 2019. As our previously unremitted earnings have
been subjected to U.S. federal income tax, we expect any repatriation of these
earnings to the U.S. would not incur significant additional taxes related to
such amounts. However, our estimates are provisional and subject to further
analysis. Cash equivalents are comprised of funds held in money market
instruments and are reported at their current carrying value, which approximates
fair value due to the short term nature of these instruments. We strive to
minimize our credit risk by investing primarily in investment grade, liquid
instruments and limit exposure to any one issuer depending upon credit quality.
See "Cash flow" discussion below.

Days' sales outstanding (DSO) was 73 at March 31, 2020, compared to 67 days for
the year at December 31, 2019. Accounts receivable more than 90 days past due
decreased to 10.3% of gross receivables at March 31, 2020, from 12.1% at
December 31, 2019. We review specific receivables periodically to determine the
appropriate reserve for accounts receivable.

The majority of our inventory consists of finished goods, including products,
materials and service parts. Inventory also consists of raw materials for
certain printers and service products. Inventory balances may fluctuate during
cycles of new product launch, commercialization and timing of ramp up of
production and sales of products.

The changes that make up the other components of working capital not discussed
above resulted from the ordinary course of business. Differences between the
amounts of working capital item changes in the cash flow statement and the
balance sheet changes for the corresponding items are primarily the result of
foreign currency translation adjustments.

Cash flow

Cash flow from operations



Cash used in operating activities for the quarters ended March 31, 2020 and
March 31, 2019 was $2.3 million and $15.2 million, respectively. Excluding
non-cash charges, the net loss provided cash of $1.0 million for the quarter
ended March 31, 2020 and used cash of $4.6 million for the quarter ended March
31, 2019. Non-cash charges generally consist of depreciation, amortization, and
stock-based compensation.

Working capital used cash of $3.3 million and $10.6 million for the quarters
ended March 31, 2020 and March 31, 2019, respectively. In the quarter ended
March 31, 2020, drivers of working capital related to cash outflows were an
increase in prepaid expenses and inventory and a decrease in other accrued
liabilities; partially offset by a increase in deferred revenue and accounts
payable. In the quarter ended March 31, 2019, cash outflows were mainly due to
lower accounts payable, lower accrued liabilities and investments in inventory
to support of new product commercialization, partially offset by an increase
deferred revenues related to software and system maintenance contracts.

Cash flow from investing activities

For the quarters ended March 31, 2020 and 2019, the primary outflows of cash relate to the purchases of noncontrolling interest and capital expenditures.

Cash flow from financing activities



Cash provided by financing activities was $1.2 million and $73.7 million for the
quarters ended March 31, 2020 and March 31, 2019, respectively. The primary
inflow of cash for the quarter ended March 31, 2020 relates to the proceeds from
the inventory financing agreements, partially offset by settlements of
stock-based compensation and repayment of the Term Facility. The primary inflow
of cash for the quarter ended March 31, 2019 relates to borrowing on the Term
Facility, partially offset by repayments of the Prior Credit Facility and Term
Facility.

                                       27
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Recent Accounting Pronouncements

Refer to Note 1 - Basis of Presentation of the Notes to Financial Statements (Part I, Item 1 of this Form 10-Q) for further discussion.

Critical Accounting Policies and Significant Estimates



Our condensed consolidated financial statements are prepared in accordance with
GAAP. The preparation of these condensed consolidated financial statements
requires us to make certain estimates and assumptions that affect the reported
amounts of assets, liabilities, revenues, costs and expenses, and related
disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our
actual results may differ from these estimates under different assumptions or
conditions.

As of the date of this report, there have been no changes to our critical
accounting policies and estimates described in the Annual Report on Form 10-K
for the year ended December 31, 2019 ("2019 Form 10-K"), filed with the
Securities and Exchange Commission ("SEC") on February 26, 2020 that have had a
material impact on our condensed consolidated financial statements and related
notes, other than the following:

Our EMEA, APAC and Americas reporting units carry approximately $182.9 million,
$35.3 million and $0 of goodwill, respectively, as of March 31, 2020. Goodwill
in the Americas region was written off in 2015. The net carrying values of our
long-lived assets in the EMEA, APAC, and Americas regions are approximately
$63.6 million, $6.8 million, and $62.8 million, respectively. In our 2019
impairment testing, we determined the EMEA and APAC reporting units had fair
values in excess of their carrying values. Our 2019 impairment testing also
indicated no impairment of long-lived assets in the Americas region as the
undiscounted cash flows were in excess of the carrying value of long-lived
assets. This headroom and recoverability were driven by our forecasts of future
operating performance as well as external market indicators.

Our operating performance through March 31, 2020 has been negatively impacted by
macroeconomic factors, the decrease and mix of sales, and the effect of the
COVID-19 pandemic. The Company is taking actions to counter these factors,
including reducing our cost structure by focusing on cost of sales and operating
expenses to drive future profitability. Refer to discussion of the COVID-19
Pandemic in this Management's Discussion and Analysis. As a results of these
matters, the Company experienced a triggering event in the current quarter and
performed a quantitative analysis for potential impairment of its goodwill or
long-lived asset balances. Based on currently available information and analysis
as of March 31, 2020, the Company continues to believe the fair value of the
reporting units exceeds their carrying values and the carrying value of our
long-lived assets is recoverable. In the event that these matters are not
satisfactorily resolved, the Company could experience another triggering event
or impairment of its goodwill or long-lived asset balances in future periods.

Forward-Looking Statements



Certain statements made in this Form 10-Q that are not statements of historical
or current facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
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. In many cases, you can identify forward-looking
statements by terms such as "believes," "belief," "expects," "estimates,"
"intends," "anticipates," or "plans" or the negative of these terms or other
comparable terminology.

Forward-looking statements are based upon management's beliefs, assumptions and
current expectations concerning future events and trends, using information
currently available, and are necessarily subject to uncertainties, many of which
are outside our control. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, forward-looking statements are
not, and should not be relied upon as a guarantee of future performance or
results, nor will they necessarily prove to be accurate indications of the times
at or by which any such performance or results will be achieved. A number of
important factors could cause actual results to differ materially from those
indicated by the forward-looking statements. These factors include without
limitation:

•impact of production, supply, contractual and other disruptions, including
facility closures and furloughs, due to the spread of the COVID-19 pandemic;
•our ability to deliver products that meet changing technology and customer
needs;
•our ability to identify strategic acquisitions, to integrate such acquisitions
into our business without disruption and to realize the anticipated benefits of
such acquisitions;
•impact of future write-off or write-downs of intangible assets;
•our ability to acquire and enforce intellectual property rights and defend such
rights against third party claims;
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•our ability to protect our intellectual property rights and confidential
information, including our digital content, from third-party infringers or
unauthorized copying, use or disclosure;
•failure of our information technology infrastructure or inability to protect
against cyber-attack;
•our ability to generate net cash flow from operations;
•our ability to obtain additional financing on acceptable terms;
•our ability to comply with the covenants in our borrowing agreements;
•impact of natural disasters, public health issues (including the COVID-19
pandemic), and other catastrophic events;
•impact of global economic, political and social conditions and financial
markets on our business;
•fluctuations in our gross profit margins, operating income or loss and/or net
income or loss;
•our ability to efficiently conduct business outside the U.S.;
•our dependence on our supply chain for components and sub-assemblies used in
our 3D printers and other products and for raw materials used in our print
materials;
•our ability to manage the costs and effects of litigation, investigations or
similar matters involving us or our subsidiaries;
•product quality problems that result in decreased sales and operating margin,
product returns, product liability, warranty or other claims;
•our ability to retain our key employees and to attract and retain new qualified
employees, while controlling our labor costs;
•our exposure to product liability claims and other claims and legal
proceedings;
•disruption in our management information systems for inventory management,
distribution, and other key functions;
•compliance with U.S. and other anti-corruption laws, data privacy laws, trade
controls, economic sanctions, and similar laws and regulations;
•our ability to comply with the terms of the Administrative Agreement with the
U.S. Air Force and to maintain our status as a responsible contractor under
federal rules and regulations;
•changes in, or interpretation of, tax rules and regulations; and
•compliance with, and related expenses and challenges concerning, conflict-free
minerals regulations; and
•the other factors discussed in the reports we file with or furnishes to the SEC
from time to time, including the risks and important factors set forth in
additional detail in Item 1A. "Risk Factors" in the 2019 Form 10-K and in Part
II, Item 1A of the Form 10-Q.

Readers are cautioned not to place undue reliance on these forward-looking
statements. The forward-looking statements included herein are made only as of
the date of this Form 10-Q and we undertake no obligation to publicly update or
review any forward-looking statement made by us or on our behalf, whether as a
result of new information, future developments, subsequent events or
circumstances or otherwise. All subsequent written or oral forward-looking
statements attributable to us or individuals acting on our behalf are expressly
qualified in their entirety by the cautionary statements referenced above.

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