Whenever a big company releases the financial results for a quarter the interest of the investment community is piqued — and no where is this more apparent with current love/hate relationship between investors and 3D Systems (DDD). The headline figures show that the company announced non-GAAP earnings of 39 cents per share, for Q4 2012 and Q4 revenue growth of 45.4% over the prior year to $101.6 million. Impressive figures.
The results didn't stop the company taking a hit when trading started however, with share price dipping to -20% on the opening price for a time. In fact, the prices of Stratasys (SSYS), ExOne (XONE) and Protolabs (PRLB) were all down this morning. I've included Protolabs as the investment community seems to be convinced it's a 3D printing stock...
At the time of writing the DDD ticker price stands at $32 — but don't forget that the stock split took place before trading started, hence the significantly lower price then Friday's close.
See the Press Release and Linked PDF below:
3D Systems Corporation (NYSE: DDD) announced today non-GAAP earnings of 39 cents per share for the fourth quarter of 2012 and GAAP earnings of 19 cents per share resulting in full year 2012 non-GAAP earnings of $1.25 and GAAP earnings of $0.71.
The company reported that its fourth quarter revenue grew 45.4% from the prior year to $101.6 million on a 93% surge in printers’ and other products revenue and 18.8% organic growth. Stronger printer demand bolstered quarter-end backlog to $11.4 million at year-end, a 23% sequential increase, which included $3.2 million related to current printers’ sales. Gross profit increased 60% and gross profit margin expanded 460 basis points to 51.7% contributing to non-GAAP net income improvement of 64% over the 2011 quarter.
For the full year 2012, revenue grew 53.5% to $353.6 million, on 90% printers’ and other products revenue increase and 22.4% organic growth. Gross profit increased 66.2% and gross profit margin expanded 390 basis points to 51.2%.
The company generated $53.0 million of cash from operations in 2012, and ended the year with $155.9 million of available cash, after incurring a $46.5 million increase in its annual operating expenses primarily from increased sales, marketing and acquisitions costs. The increase included $8.9 million of higher R&D expenditures in support of its expanded portfolio.
“We are very pleased to report outstanding quarterly and annual results on accelerated printers’ sales,” said Avi Reichental, 3D Systems’ President and Chief Executive Officer. “We believe that our results reflect the potency of our diversified portfolio, productivity of our channels and effectiveness of our strategic growth initiatives.”
The table below summarizes the company’s key 2012 non-GAAP financial results for the fourth quarter and full year.