PSC revenue for the 2012 fourth quarter was up 52%, or $1.3 million, over the prior-year period. PSC revenue in 2012 improved by 31.3%, or $3.1 million, as the Company has increased its customer base from growing demand for 3D printed parts.
Higher Machine Sales Results in Margin Expansion for the Quarter
Gross profit was $6.2 million in the fourth quarter of 2012, improved $5.8 million from gross profit of $0.4 million in the fourth quarter of 2011 driven by the significant increase in machine sales. Gross profit as a percent of sales was 49.0% in the fourth quarter of 2012 compared with 14.6% in the same period of 2011. Gross profit included a $1.5 million reduction in license fees.
Operating income for the fourth quarter of 2012 was $2.0 million, or 16.0% of sales, compared with an operating loss of $2.1 million in the fourth quarter of 2011. Improved operating income was due to higher sales volume.
Full Year 2012 Operational Review
Gross profit was $12.1 million, or 42.4% of sales, in 2012. SG&A expenses were $18.3 million, or 63.8% of sales, for the year compared with $7.3 million, or 47.7% of sales, in 2011. Increased SG&A reflected investments for growth which included additional personnel to support higher future sales volume. Also included in SG&A for the year was approximately $1.9 million of expenses associated with the preparation for the initial public offering ("IPO") and a $7.7 million stock compensation expense. R&D expenses were $1.9 million in 2012, compared with $1.5 million in 2011.
Excluding the aforementioned expenses of $9.6 million, operating income would have been $1.5 million for 2012, up from an operating loss of $5.2 million during 2011. As reported, consolidated operating loss for the year was $8.1 million. Backlog at December 31, 2012 was $5.1 million.
Balance Sheet Bolstered by Successful IPO
On February 12, 2013, ExOne completed its IPO of 6,095,000 shares of common stock at $18 per share, resulting in net proceeds to the Company of $92.0 million. Approximately $10.3 million of the proceeds were used to repay outstanding debt. In addition, we purchased the assets and repaid the liabilities of our variable interest entities for approximately $7.0 million. The Company plans to use the remainder of the proceeds to fund ExOne's growth initiatives, including the build out of an additional ten PSCs over the next three to five years and the expansion of our global manufacturing capacity, as well as further research and development, process improvement initiatives and other corporate purposes.