3D Systems Announces Preliminary Full Year 2013 Results; Guides Revenue in the Range of $513M-514M; Previous Guidance Was $500M-530M
3D Systems Corporation (NYSE: DDD) announced today that it anticipates its full year revenue to be in the range of $513 million to $514 million, within its previously raised revenue guidance range of $500 million to $530 million on over 30% organic revenue growth and over 50% total revenue growth for the fourth quarter of 2013. Compared to its expectations, the company experienced much stronger professional 3D printers and materials demand and softer on-demand parts and consumer demand during the fourth quarter. As a result, the company expects to report its December backlog nearly doubled sequentially to $28 million which included multiple advanced manufacturing 3D printers orders that it plans to deliver over the next year. These are preliminary, unaudited results based on current expectations and actual results may differ.
The company expects to report that its gross profit margin remained materially unchanged despite expanding unfavorable mix pressure that resulted in a slight decrease for the quarter. Consistent with management's prior comments and actions, the company expects to report that its non-GAAP earnings per share compressed as a result of a substantial increase to its R&D expenditure related to its accelerated new product developments, a step up in sales and marketing expenses related to its rapid products channel expansion and higher costs related to its acquisition concentration during the quarter.
Accordingly, the company expects its non-GAAP earnings per share to be in the range of $0.83 to $0.87, below its previously expected guidance of $0.93 to $1.03 and its GAAP earnings per share to be in the range of $0.43 to $0.45.
The company expects to report final fourth quarter and full year 2013 results on February 28, 2014.
"Consistent with our previous comments, during the fourth quarter we made very significant R&D, manufacturing and marketing investments designed to accelerate revenue growth that resulted in substantially compressed earnings for the fourth quarter," said Avi Reichental, President and Chief Executive Officer, 3DS. "As we previously stated, we are willing to tolerate earnings reduction and even slight gross profit margin compression during this period to substantially accelerate our growth rate and market share. We firmly believe that these accelerated investments that already resulted in the announcement of 24 new products over the past nine weeks position the company to double its revenue over the next couple of years on organic growth of at least 30% going forward and to achieve greater earnings power and profitability over the long term."
Management believes that the ultimate measure of the company's success will be the sustainable value it creates over the long term and expects greater value to be created as a direct result of its ability to extend and solidify its leadership position via these accelerated actions and investments. Management continues to balance its focus on growth with emphasis on long-term profitability, but given the near term opportunities, is choosing to prioritize growth because it believes that scale is central to achieving the full potential of its business model, and accordingly expects its 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.
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 reports 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 will be provided when the company reports its financial results.
About 3D Systems Corporation
3D Systems is a leading provider of 3D printing centric design-to-manufacturing solutions including 3D printers, print materials and cloud sourced on-demand custom parts for professionals and consumers alike in materials including plastics, metals, ceramics and edibles. The company also provides integrated 3D scan-based design, freeform modeling and inspection tools. Its products and services replace 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, create, communicate, prototype or produce real parts, empowering customers to manufacture the future.
Leadership Through Innovation and Technology
3DS invented 3D printing with its Stereolithography (SLA) printer and was the first to commercialize it in 1989. 3DS invented Selective Laser Sintering (SLS) printing and was the first to commercialize it in 1992. 3DS invented the Color-Jet-Printing (CJP) class of 3D printers and was the first to commercialize 3D powder-based systems in 1994. 3DS invented Multi-Jet-Printing (MJP) printers and was the first to commercialize it in 1996. Today its comprehensive range of 3D printers is the industry's benchmark for production-grade manufacturing in aerospace, automotive, patient specific medical device and a variety of consumer, electronic and fashion accessories.
More information on the company is available at www.3DSystems.com.
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