Organic growth amounted to 10% as additional orders-in-hand, including $23.1 million of printer orders, a 29% sequential increase over the March backlog for printers, expanded the company’s second quarter total backlog to a record $31.9 million.
“We are pleased that unit sales of our design and manufacturing printers increased 126% and helped fuel a 30% increase in materials revenue. We believe that the record order book that we exited the quarter with reflects the vibrancy of our business and our organic growth trajectory,” said Avi Reichental, 3DS’ President and Chief Executive Officer.
Second Quarter 2014 Revenue Highlights (compared to second quarter 2013):
- Design and manufacturing revenue increased 28% to $144.2 million on a 126% increase in units sold.
- Growing installed base and increased printer utilization fueled materials revenue growth of 30%.
- Expanding services menu contributed to a 38% increase in services revenue.
- Delayed new products availability held consumer revenue to $7.4 million, but didn’t impede higher consumer bookings of an additional $7.7 million.
- Healthcare revenue increased 46% to $27.5 million from expanding services and capabilities.
Gross profit margin shouldered the transitional effects of concentrated new product launches as well as the absorption of legacy products obsolescence and manufacturing expansion costs. Together, these factors and changed mix compressed gross profit margin some 400 basis points from the prior year’s quarter to 47.8%.
“While transitional forces temporarily pressured our gross profit margin, a detailed examination of the specific drivers, confirms that the fundamentals of our business are intact and our gross profit margins are poised to rebound and resume their expansion trajectory,” continued Reichental.
The company effectively kept its operating expenses flat, on a sequential basis, even with continued investments in R&D, sales, marketing and manufacturing capacity. The company generated $19.0 million of cash from operations during the second quarter as returns on its recent investments began to materialize and enterprise-wide integration synergies continued to accrue. The company ended the quarter with $570.3 million cash on hand, inclusive of an equity raise completed earlier in the quarter.
“As we advance our market leadership and scale in key verticals through our increased investments, our progress is ahead of schedule and our enterprise-wide synergies are already generating substantial cash from operations,” continued Reichental.
For the six months 2014, revenue grew $76.4 million, or 34%, with growth distributed broadly across all categories, to $299.3 million, resulting in GAAP earnings per share of $0.07 per share and non-GAAP earnings per share of $0.30 per share.
Source: 3D Systems