3D Systems Reports First Quarter Results
ROCK HILL, South Carolina – April 26, 2012 – 3D Systems Corporation (NYSE: DDD) announced today non-GAAP adjusted earnings of 25 cents per share for the first quarter of 2012 and GAAP earnings of 12 cents per share.
Revenue increased 63% to $77.9 million over the first quarter of 2011. Printer units grew 153% for the quarter compared to 2011.
Gross profit grew 67% for the first quarter on higher revenue and gross profit margin expanded 143 basis points over the 2011 period to 50%.
The company reports 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, 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 tables and schedule two.
For the first quarter of 2012, the company reported non-GAAP adjusted net income of $13.2 million resulting in $0.25 earnings per share, up 47% compared to the first quarter of 2011, and GAAP net income of $6.2 million, which included the expected $2.4 million restructuring and severance costs from its first quarter Z Corp and Vidar acquisitions, resulting in $0.12 earnings per share.
The company generated $15.8 million of cash from operations in the first quarter 2012, after incurring a $13.1 million increase in its operating expenses from expected acquisition and higher sales and marketing costs. The increase also included a $2.1 million of higher R&D expenditures in support of its Cubify.com consumer initiative and expanded R&D programs in support of the businesses it acquired during the first quarter of 2012.
“We are pleased to report another quarter of record revenue and printer units,” said Abe Reichental, 3D Systems’ President and Chief Executive Officer. “Record print materials revenue and continued margin expansion drove our consolidated gross profit margin upward validating the earnings power of our business model.”
The table below summarizes the company’s key 2012 non-GAAP financial results for the first quarter.
- Percents are rounded to nearest whole number
- 2011 earnings per share are adjusted for the two-for-one stock split effected in the second quarter of 2011
- Gross profit, operating expenses, operating income, net income and earnings per share have been adjusted to reflect non-GAAP operating results. See the reconciliation of non-GAAP data to GAAP net income and earnings per share at the end of this press release.
During the first quarter, the company generated revenue growth from all its revenue categories. 3D printer units sold increased 153% over the 2011 period, and accounted for an $11.2 million revenue increase as a result of the company’s effective mix shift towards
its lower priced personal, professional and production printers and the addition of acquired ZPrinters® to its portfolio. Print materials revenue grew 58% to a new record of $24.7 million benefitting from printer units sales growth as a result of the company’s continued printer portfolio and price point re-alignment and expansion. Services revenue increased by $9.8 million over the 2011 period to $28.5 million and included $17.7 million of on-demand parts.
The company ended the first quarter of 2012 with $60.0 million of available cash, including $15.8 million of cash from operations.
The company affirmed its annual guidance for the full year 2012 and expects its revenue to be in the range of $330 million to $360 million and its non-GAAP adjusted earnings per share to be in the range of $1.00 to $1.25.
“We entered the second quarter of 2012 with positive sales momentum including $9.6 million of backlog reflecting the growing appeal of our unmatched products and services and the effectiveness of our differentiated field-deployed and on-line sales channels. While we may face lingering economic uncertainties in parts of the world, we believe that we are best positioned organizationally, geographically and technologically to benefit from the expanding rapid manufacturing and emerging consumer opportunities ahead,” concluded Reichental.
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.
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. The company also provides creative content development, design productivity tools and curation services and downloads. Its expertly integrated solutions replace, displace 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, communicate, prototype and produce functional end-use parts empowering our customers to create with confidence.
More information on the company is available at www.3DSystems.com.
To experience 3D Systems’ entire range of 3D content-to-print products and services please visit www.printin3D.com, www.production3dprinters.com, www.zcorp.com, www.toptobottomdental.com, www.3Dproparts.com, www.quickparts.com, www.paramountind.com, www.zcorp.com, www.alibre.com, www.bitsfrombytes.com, www.cubify.com, www.myrobotnation.com, www.The3dStudio.com, www.freedomofcreation.com, www.sycode.com, www.botmill.com, blog.3dsystems.com, or via email at moreinfo@3Dsystems.com.