Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

News Feed Item

Proto Labs Reports Record Revenue and Net Income for the First Quarter 2014

Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled quick-turn manufacturer, today announced record financial results for the first quarter ended March 31, 2014.

Highlights include:

  • Revenue for the first quarter of 2014 increased to a record $46.1 million, 23 percent above revenue of $37.3 million in the first quarter of 2013.
  • The record quarterly revenue was achieved through an 18 percent increase in the number of product developers served combined with an increase of 4 percent in spending per product developer.
  • Net income for the first quarter of 2014 increased to a record $10.1 million, or $0.39 per diluted share. Non-GAAP net income, excluding the after tax expense of stock compensation, was $10.8 million, or $0.41 per diluted share. See “Non-GAAP Financial Measure” below.

“Our story in the first quarter of 2014 was about execution on many fronts. We successfully prepared for the formal launches in metal injection molding and liquid silicone rubber, both of which were announced the first week of April. Our revenue growth was strong, especially considering all the weather slow-downs and closures our customers experienced in the eastern half of the country. And of course, we completed the acquisition of FineLine Prototyping which we proudly announced a few days ago,” said Vicki Holt, President and Chief Executive Officer of Proto Labs.

Additional highlights include:

  • Gross margin was 63.0 percent of revenue in the first quarter of 2014 compared with 62.4 percent during the same quarter in 2013.
  • During the first quarter of 2014, spending on research and development, including the Protoworks initiatives, totaled $3.5 million, or 7.5 percent of revenue. This compares to $2.6 million, or 7.0 percent of revenue, during the first quarter of 2013.
  • Operating margin was 31.4 percent of revenue during the first quarter of 2014 compared to 30.5 percent in the first quarter of 2013.
  • As measured on a year-to-date basis, cash generated from operations totaled $15.3 million and expenditures on capital equipment were $9.9 million. Total cash, cash equivalents and investments totaled $149.9 million as of March 31, 2014.

“As much as we accomplished this past quarter, we expect the next few quarters will bring even more success. We are confident that our new services, LSR and MIM, will continue to gain momentum through 2014 and into 2015 as product developers become aware of and have experience with these new offerings. The integration of FineLine and its additive manufacturing service will bring more choices to product developers. We believe we are building the most dynamic parts supplier in the world with capabilities to supply our customers’ parts demand from quick-turn prototyping through short-run volume production via a robust portfolio of manufacturing technologies in a wide variety of material selections,” concluded Holt.

Non-GAAP Financial Measure

The company has included non-GAAP net income, adjusted for stock-based compensation expense, in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below a reconciliation of non-GAAP net income, adjusted for stock-based compensation expense, to net income, the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP net income, adjusted for stock-based compensation expense, is used by the company’s management and board of directors to understand and evaluate operating performance and trends and provides a useful measure for period-to-period comparisons of the company’s business. Accordingly, the company believes that non-GAAP net income, adjusted for stock-based compensation expense, provides useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.

Conference Call

The company has scheduled a conference call to discuss its first quarter financial results today, May 1, 2014 at 8:30 a.m. ET. To access the call in the U.S. please dial 866-700-6067. Outside the U.S. please dial 617-213-8834. Use participant code 17168050. A simultaneous webcast of the call will also be available on the investor relations section of the company’s website at www.protolabs.com/investors. An audio replay will be available for 14 days following the call on the investor relations section of Proto Labs’ website.

About Proto Labs, Inc.
Proto Labs is a leading online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. Proto Labs provides “Real Parts, Really Fast” to product developers worldwide. Proto Labs utilizes computer numerical control (CNC) machining, injection molding, and additive manufacturing (3D printing), to manufacture custom parts for our customers. For more information, visit protolabs.com.

Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Proto Labs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Proto Labs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Proto Labs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Proto Labs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

 
Proto Labs, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
 
       
March 31, December 31,
2014 2013
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 44,201 $ 43,039
Short-term marketable securities 34,360 36,339
Accounts receivable, net 21,905 18,320
Inventory 5,346 5,166
Other current assets   4,862   6,931
Total current assets 110,674 109,795
 
Property and equipment, net 63,963 56,101
Long-term marketable securities 71,315 64,023
Other long-term assets   249   256
Total assets $ 246,201 $ 230,175
 
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 10,405 $ 6,455
Accrued compensation 4,779 6,196
Accrued liabilities and other 1,304 808
Income taxes payable 145 -
Current portion of long-term debt obligations   208   204
Total current liabilities 16,841 13,663
 
Long-term deferred tax liabilities 3,779 3,682
Long-term debt obligations 106 159
Other long-term liabilities 999 1,028
 
Shareholders' equity   224,476   211,643
Total liabilities and shareholders' equity $ 246,201 $ 230,175
 
 
Proto Labs, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
       
 
Three Months Ended
March 31,

2014

2013

Revenue
Protomold $ 32,694 $ 26,880
Firstcut   13,380   10,433
Total revenue 46,074 37,313
 
Cost of revenue   17,050   14,034
Gross profit 29,024 23,279
 
Operating expenses
Marketing and sales 6,417 5,263
Research and development 3,456 2,628
General and administrative   4,703   3,994
Total operating expenses   14,576   11,885
Income from operations 14,448 11,394
Other income, net   103   3
Income before income taxes 14,551 11,397
Provision for income taxes   4,449   3,110
Net income $ 10,102 $ 8,287
 
Net income per share:
Basic $ 0.40 $ 0.33
Diluted $ 0.39 $ 0.32
 
Shares used to compute net income per share:
Basic 25,573,851 25,014,907
Diluted 26,091,069 25,645,744
 
 
Proto Labs, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
       
Three Months Ended
March 31,
2014 2013
 
Operating activities
Net income $ 10,102 $ 8,287
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,106 1,734
Stock-based compensation expense 998 865
Deferred taxes 107 148
Excess tax benefit from stock-based compensation (897 ) (4,067 )
Amortization of held-to-maturity securities 482 304
Changes in operating assets and liabilities   2,368     3,874  
Net cash provided by operating activities   15,266     11,145  
 
Investing activities
Purchases of property and equipment (9,892 ) (2,548 )
Purchases of marketable securities (32,385 ) (41,088 )
Proceeds from maturities of marketable securities   26,590     18,313  
Net cash used in investing activities   (15,687 )   (25,323 )
 
Financing activities
Payments on debt (50 ) (92 )
Proceeds from exercises of stock options and other 665 1,619
Excess tax benefit from stock-based compensation   897     4,067  
Net cash provided by financing activities   1,512     5,594  
Effect of exchange rate changes on cash and cash equivalents   71     (246 )
Net increase (decrease) in cash and cash equivalents 1,162 (8,830 )
Cash and cash equivalents, beginning of period   43,039     36,759  
Cash and cash equivalents, end of period $ 44,201   $ 27,929  
 
 
Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measure
(In thousands, except share and per share amounts)
(Unaudited)
   
 
Three Months Ended
March 31, 2014
Non-GAAP net income, adjusted for stock-based compensation expense:
GAAP net income $ 10,102
Add back: Stock-based compensation expense
Cost of revenue 82
Marketing and sales 195
Research and development 215
General and administrative   506  
Total stock-based compensation expense 998
Income tax benefits on stock-based compensation   (312 )
Non-GAAP net income $ 10,788  
 
Non-GAAP net income per share:
Basic $ 0.42  
Diluted $ 0.41  
 
Shares used to compute non-GAAP net income per share:
Basic 25,573,851
Diluted 26,091,069
 
 
Proto Labs, Inc.
Revenue by Geography - Based on Shipping Location
(In thousands)
(Unaudited)
       
 
Three Months Ended
March 31,

2014

2013

Revenues
Domestic
United States $ 33,022 $ 28,148
International
Europe 9,205 6,465
Japan 1,885 1,349
United States   1,962   1,351
Total international   13,052   9,165
Total revenue $ 46,074 $ 37,313
 
 
Proto Labs, Inc.
Customer Information
(In thousands, except customer amounts)
(Unaudited)
               
Three Months Ended March 31,
2014 2013
Number of Number of
Customers Revenue ($) Customers Revenue ($)
 
New customers 559 $ 3,196 710 $ 3,078
Existing customers 4,325   42,878 3,528   34,235
Total 4,884 $ 46,074 4,238 $ 37,313
 
 
Proto Labs, Inc.
Product Developer Information
(Unaudited)
       
Three Months Ended
March 31,
2014 2013
 
Unique product developers served 7,669 6,488
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a mu...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...