910638--2/24/2010--3D_SYSTEMS

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{stock, price, share}

{provision, law, control}

{customer, product, revenue}

{product, market, service}

{operation, international, foreign}

{cost, operation, labor}

{financial, litigation, operation}

{acquisition, growth, future}

{tax, income, asset}

{property, intellectual, protect}

{debt, indebtedness, cash}

{condition, economic, financial}

{regulation, change, law}

If we were unable to generate net cash flow from operations or if we were unable to raise additional capital, our financial condition could be adversely affected. Global economic, political and social conditions may harm our ability to do business, increase our costs and negatively affect our stock price. We have made, and expect to continue to make, strategic acquisitions that may involve significant risks and uncertainties. Our future success may depend on our ability to deliver products that meet changing technology and customer needs. We may incur substantial costs enforcing or acquiring intellectual property rights and defending against third-party claims as a result of litigation or other proceedings. We derive a significant portion of our revenue from business conducted outside the U.S and are subject to the risks of doing business outside the U.S. We face significant competition in many aspects of our business, which could cause our revenue and gross profit margins to decline. Competition could also cause us to reduce sales prices or to incur additional marketing or production costs, which could result in decreased revenue, increased costs and reduced margins. We depend on a limited number of suppliers for components and sub-assemblies used in our systems and raw materials used in our materials. If these relationships were to terminate, our business could be disrupted while we locate an alternative supplier and our expenses may increase. Costs of certain employee benefits may continue to rise. We face risks in connection with changes in energy-related expenses. The variety of products that we sell could cause significant quarterly fluctuations in our gross profit margins, and those fluctuations in margins could cause fluctuations in operating income or loss and net income or net loss. We may be subject to product liability claims, which could result in material expense, diversion of management time and attention and damage to our business reputation. Historically, our common stock has been characterized by generally low daily trading volume, and our common stock price has been volatile. The number of shares of common stock issuable upon the exercise of outstanding stock options could dilute your ownership and negatively impact the market price for our common stock. Our Board of Directors is authorized to issue up to 5 million shares of preferred stock. The stockholders rights plan adopted by the Board of Directors in 2008 may inhibit takeovers and may adversely affect the market price of our common stock. Various provisions of Delaware law may inhibit changes in control not approved by our Board of Directors and may have the effect of depriving our stockholders of an opportunity to receive a premium over the prevailing market price of our common stock in the event of an attempted hostile takeover. Our balance sheet contains several categories of intangible assets totaling $52.3 million at December 31, 2009 that we could be required to write off or write down in the event of the impairment of certain of those assets arising from any deterioration in our future performance or other circumstances. Such write-offs or write-downs could adversely impact our future earnings and stock price, our ability to obtain financing and our customer relationships.

Full 10-K form ▸

910638--2/24/2010--3D_SYSTEMS_CORP