3D Systems Reports Q3 2013 Results
- Unprecedented Advanced Manufacturing and Consumer Demand
- Revised Full-Year Guidance to Accelerate Growth Rate and Investments
ROCK HILL, South Carolina – October 29, 2013 - 3D Systems Corporation (NYSE: DDD) announced today that its third quarter revenue grew 50% from the prior year to a record $135.7 million on a 76% increase in printers’ and other products revenue and 30% overall organic growth, resulting in GAAP earnings of $0.17 per share and non-GAAP earnings of $0.26 per share.
Gross profit increased 52% and gross profit margin expanded 80 basis points to 52.6%, contributing to GAAP net income of $17.7 million, and non-GAAP net income of $26.2 million, representing a 44% improvement over the 2012 quarter.
For the nine months 2013, revenue grew 42% to $358.6 million, on an 81% increase in printers and other products revenue and 27% organic growth, resulting in GAAP earnings of $0.34 per share and non-GAAP earnings of $0.66 per share. Gross profit increased 46% and gross profit margin expanded 120 basis points to 52.3%.
“We are very pleased to report another record revenue quarter on unprecedented printer units demand that more than tripled last year’s unit sales,” said Avi Reichental, 3D Systems’ President and Chief Executive Officer. “Stronger materials sales, increased advanced manufacturing activities and meaningful consumer products revenue contribution fueled our growth.”
Third Quarter 2013 Revenue Highlights (compared to 2012 quarter):
• 3D printers and other products revenue increased 76% to $59.8 million.
• Print materials revenue grew 30% to $33.2 million.
• Services revenue rose 38% to $42.7 million.
• Healthcare revenue grew 39% and contributed $16.9 million to our total revenue.
• Consumer solutions contributed $13.5 million to our total revenue.
The company continued to increase its R&D and marketing expenditures, making investments in support of its near term opportunities and expanding product portfolio. For the third quarter in a row, the company expanded its manufacturing capacity to accommodate increasing demand for its products and services.
“We are accelerating developments of key products, channels and technologies to capture a broader share of upstream production applications and downstream consumer opportunities,” continued Reichental.”
To accelerate its growth rate, the company decided to further increase its R&D, marketing and retail field operations spending in connection with specific, near-term, new product introductions and retail channel expansion. Significant marketplace interest in its recently acquired, proprietary, Phenix direct metals 3D printers also compelled the company to accelerate new products development and capacity investments. As a result, the company updated its annual guidance for the full year 2013, increasing its revenue guidance to be in the range of $500 million to $530 million and, consistent with the step up in discretionary spending, reducing its non-GAAP earnings per share guidance to be in the range of $0.93 to $1.03.
“For the next few periods we are going for accelerated market-share expansion ahead of earnings per share. We believe that our portfolio’s diversity, ranging from direct metal printers at the high end to desktop consumer printers at the low end, is best positioned to capture this unprecedented market opportunity, and expect that our decisive actions will extend our first mover advantage in key verticals. With the fundamentals of our business model remaining intact, we fully expect that the higher investments we are making currently will favorably influence our results in the coming periods,” concluded Reichental.
Conference Call and Webcast Details
3D Systems will hold a conference call and webcast to discuss its operating results for the third quarter and nine months 2013 on Tuesday, October 29, 2013 at 9:00 a.m., Eastern Time.
• To access this webcast, log onto 3D Systems’ web site at www.3dsystems.com/investor. To ensure timely participation and technical capability, we recommend logging on a few minutes prior to the conference call to activate your participation.
• To access this conference call, dial 1-800-706-7745 from in the U.S. or 1-617-614-3472 from outside the U.S. and enter participant code 86406937.
• The webcast will be also be available for replay beginning approximately two hours after completion of the call at: www.3dsystems.com/investor.
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements 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 or projections expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements,” “Cautionary Statements and Risk Factors,” and “Risk Factors” in the 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.
Presentation of Information in This Press release
To facilitate a better understanding of the impact that several strategic acquisitions had on its financial results, the company reported non-GAAP measures that adjust net income and earnings per share by excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses, litigation settlements, loss on conversion of notes and stock-based compensation expense. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.
About 3D Systems Corporation
3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials and on-demand custom parts services for professionals and consumers alike with materials ranging from thermoplastics, metals, ceramics and edible sugar. The company also provides software design tools including CAD, reverse engineering and inspection and consumer 3D printers, apps and services. Its expertly integrated solutions replace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. These solutions are used to rapidly design, create, communicate, prototype or produce real parts, empowering customers to manufacture the future.
More information on the company is available at www.3DSystems.com.
Tables Follow in the attached PDF