3D Systems Corporation announced today its financial results for the fourth quarter and full year 2014.
For the quarter ended December 31, 2014, the company reported record revenue of $187.4 million, representing a 21% increase over the comparable 2013 quarter despite significant foreign currency headwinds that reduced its total revenue by some $6 million during the quarter.
For the same period, the company reported GAAP earnings of $0.01 per share and non-GAAP earnings of $0.21 per share.
The company recorded an impressive 46% revenue increase from its EMEA region, over the same quarter in 2013, notwithstanding a challenging operating environment, outperforming all other regions with 28% organic growth. Channel productivity, primarily in North America, fell well short of the company’s expectations, restricting total organic growth to 7% for the quarter.
The company’s direct metals and healthcare performance continued to surpass industry growth rates, increasing in revenue over the fourth quarter of 2013 by 178% and 96%, respectively. Consumer revenue increased substantially over the same 2013 period, growing by 68%. The company’s order book held steady at $46.5 million, even as its fourth quarter revenue increased 12% sequentially.
“We are disappointed that we were not able to fully capitalize on the strength of our portfolio in all geographies equally, but are very pleased with the impressive growth rate that our EMEA channel delivered in the face of adverse foreign currency rates,” said Avi Reichental, 3DS’ President and Chief Executive Officer. ”We are taking decisive steps to improve the productivity and coverage of our North American and APAC channels to the level of our EMEA region.”
For the fourth quarter of 2014, gross profit margin remained firm at the previous quarter’s level of 47.9%, contributing to GAAP net income of $1.6 million, and non-GAAP net income of $23.8 million. The company generated $23.2 million of cash from operations during the fourth quarter and ended the year with $284.9 million of cash on hand.
For the full year 2014, the company recorded revenue and non-GAAP earnings per share within its recently revised guidance ranges. Specifically, the company reported a revenue increase of 27% to a record $653.7 million, GAAP earnings of $0.11 per share and non-GAAP earnings of $0.70 per share for the year. Expanding materials and services margins and higher revenue contributed to a 19% increase in gross profit in 2014 over 2013, but a higher number of new product introductions, ongoing manufacturing capacity expansion and unfavorable mix constrained gross profit margin to 48.6% for the year.
Fourth quarter operating expenses increased 38% from the prior year quarter, reflecting a step up of 36% in R&D and 38% in SG&A costs, in line with the company’s previously disclosed strategic initiatives.
“As expected, higher spending levels in support of our expansion plans pressured our earnings throughout 2014, as we fast-tracked assembly of the talent, assets and infrastructure required to take our business to the next level,” continued Reichental. “Having completed this investment phase, we expect to recover our operating leverage and expand our profitability throughout 2015.”
To view an unabridged version of this press release, visit: http://www.3dsystems.com/press-releases/3d-systems-reports-record-revenue-fourth-quarter-and-full-year-2014
