ROCK HILL, South Carolina – October 25, 2012 - 3D Systems Corporation (NYSE: DDD) announced today non-GAAP adjusted earnings of 32 cents per share for the third quarter of 2012 and GAAP earnings of 24 cents per share.
Revenue increased to $90.5 million, a 57% increase, over the third quarter of 2011, on 26% organic growth. The company reported growth from all its revenue categories, led by printer revenue on a 123% increase in printer units sold, excluding Cube® printer units. Backlog at the end of the quarter amounted to $9.3 million on continued across the board strong demand.
For the third quarter, gross profit grew 69% on higher revenue and gross profit margin expansion of 350 basis points over the 2011 quarter to 51.8%, driven by printers and materials gross profit margin improvement.
The company reported that its third quarter non-GAAP adjusted net income rose 99% to $18.2 million, compared to the 2011 quarter, resulting in earnings per share of $0.32 and GAAP net income of $13.5 million, resulting in $0.24 earnings per share.
Notwithstanding higher costs from recent acquisitions and strategic R&D investments, the company raised its annual guidance for the full year 2012, expecting its revenue to be in the range of $345 million to $365 million and its non-GAAP adjusted earnings per share to be in the range of $1.20 to $1.30.
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, non-recurring acquisition expenses, litigation settlements, loss on conversion of notes, stock-based compensation and any release of the valuation allowance on deferred tax assets. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.
The company generated $44.0 million of cash from operations in the first nine months of 2012, and ended the third quarter of 2012 with $183.9 million of available cash, after incurring a $9.5 million increase in its operating expenses driven primarily by increased sales marketing and acquisitions costs. The increase included $1.7 million of higher R&D expenditures in support of its expanded portfolio.
“We are very pleased to report another outstanding quarter driven by doubling printer units sales,” said Abe Reichental, 3D Systems’ President and Chief Executive Officer. “We believe that our record revenue and earnings growth, amidst expected seasonal weakness, reflects the potency of our diversified portfolio and business model.”
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