3D Systems Reports Q4 and Full Year 2013 Results
3D Systems Q4 and Full Year 2013 Results |
- Record Quarterly and Annual Revenue on Increased Organic Growth
- Expects 2014 Revenue of $680 million to $720 million on 30% organic growth
Release Date: Friday, February 28, 2014 – 07:42
ROCK HILL, South Carolina – February 28, 2014 – 3D Systems Corporation (NYSE: DDD) announced today that its fourth quarter revenue grew 52% from the prior year to a record $154.8 million on 34% overall organic growth, resulting in GAAP earnings of $0.11 per share and non-GAAP earnings of $0.19 per share for the fourth quarter.
For the fourth quarter 2013, gross profit increased 53% and gross profit margin remained flat at 51.7% compared to the 2012 fourth quarter, and contributed to GAAP net income of $11.2 million, and non-GAAP net income of $19.7 million.
For the full year 2013, revenue increased 45% to a record $513.4 million on 80% printers and other products growth and 29% organic growth, resulting in GAAP earnings of $0.45 per share and non-GAAP earnings of $0.85 per share for the year. Gross profit increased 48% and gross profit margin expanded 90 basis points to 52.1%.
“We are pleased to report another record revenue quarter on robust professional and advanced manufacturing printers’ demand, increased materials’ growth rate and total unit sales that more than tripled last year’s units,” said Avi Reichental, 3D Systems’ President and Chief Executive Officer.
Fourth Quarter 2013 Revenue Highlights (compared to 2012 quarter):
- 3D printers and other products revenue increased 76% to $73.9 million.
- Print materials revenue grew 39% to $37.2 million.
- Services revenue rose 33% to $43.7 million.
- Healthcare revenue increased 67% to $21.8 million.
- Consumer solutions expanded 162% to $8.9 million.
Full Year 2013 Revenue Highlights (compared to 2012):
- 3D printers and other products revenue increased 80% to $227.6 million.
- Print materials revenue grew 24% to $128.4 million.
- Services revenue rose 27% to $157.4 million.
- Healthcare revenue increased 45% to $71.7 million.
- Consumer solutions expanded 206% to $34.8 million.
“Compared to our late quarter expectations, we are disappointed that our stronger order book didn’t convert to higher revenue, but instead, resulted in a near doubling of last quarter’s backlog. Despite our higher growth, certain revenue categories fell short of our expectations and the concentration of new product announcements deferred sales and suppressed expected gross profit margin for the quarter,” continued Reichental.
Consistent with its prior comments, the company more than doubled its fourth quarter R&D spending from $7.8 million the prior year to $16.6 million for the December quarter and continued to rapidly increase its sales, marketing, infrastructure and talent expenditures in support of its growth initiatives and recently announced joint developments and alliances. The impact of these expenditures was partially reflected in the unveiling of 24 new products between December 1st 2013 and January 9th 2014. The company also continued to expand its manufacturing capacity to accommodate increasing demand.
“Maintaining our historical performance doesn’t require this level of increased expenditures, but planning to double our revenue over the next couple of years does,” said Reichental. Although, in October, we guided for reduced earnings to reflect these actions, our late-quarter expenditures ramp surpassed our expectations.”
Management continues to focus on accelerating the company’s growth and expanding its market share. Consequently, management is prioritizing initiatives and investments that are central to its plans to double its revenue, over the next couple of years, ahead of short-term earnings, in order to deliver the full potential of its business model. Accordingly, management expects 2014 revenue to be in range of $680 million to $720 million and expects GAAP earnings per share in the range of $0.44 to $0.56 and non-GAAP earnings per share to be in the range of $0.73 to $0.85.
“We believe that 3D Printing is at the cusp of accelerated growth and that the ultimate measure of our success will be the sustainable value we create from our share and scale gains over time. While our stepped up actions and investments pressured our quarterly earnings, we believe that our actions set the stage to substantially compress the time it will take us to extend and solidify our leadership position and deliver greater value,” concluded Reichental.
Q4 and Full Year 2013 Conference Call and Webcast
3D Systems plans to hold a conference call and simultaneous webcast to discuss its financial results for the fourth quarter and full year 2013 on Friday, February 28, 2014, at 9:00 a.m. Eastern Time. The company expects to release these financial results and to file its Form 10-K on February 28, 2014.
- Date: Friday, February 28, 2014
- Time: 9:00 a.m. Eastern Time
- Listen via Internet: www.3dsystems.com/investor
- Participate via telephone:
- Within the U.S.: 1-866-953-6856
- Outside the U.S.: 1-617-399-3480
- Participant code: 77177985
The recorded webcast will be available beginning approximately two hours after the live presentation 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.
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