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Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled quick-turn manufacturer, today announced record financial results for the second quarter ended June 30, 2014.
Revenue for the second quarter of 2014 increased to a record $52.9 million, 33 percent above revenue of $39.7 million in the second quarter of 2013.
Revenue from additive services (3D printing) through the Fineline acquisition completed last April totaled $2.1 million.
The record quarterly revenue was achieved through a 19 percent increase in the number of product developers served combined with an increase of 7 percent in spending per product developer.
Net income for the second quarter of 2014 increased to a record $11.0 million, or $0.42 per diluted share. Non-GAAP net income, excluding the after tax expense of stock compensation and amortization of intangibles, was $11.9 million, or $0.45 per diluted share. See “Non-GAAP Financial Measure” below.
“Our business performed wonderfully this past quarter and our employees executed on many fronts. We rolled out new services for product developers; we completed a strategic acquisition; we transitioned our Firstcut operations to our new factory in Plymouth, Minnesota; and we once again generated record revenues,” said Vicki Holt, President and Chief Executive Officer of Proto Labs. “Over the next couple of quarters, we will be focused on further integration of Fineline and the launch of several new services developed by our Protoworks team.”
Additional highlights include:
Gross margin was 61.8 percent of revenue during the second quarter of 2014 compared with 62.5 percent during the same quarter in 2013. The factory move of Firstcut operations to Plymouth, Minnesota, was completed in May on schedule.
During the second quarter of 2014, spending on research and development, including the Protoworks initiatives, totaled $3.9 million, or 7.4 percent of revenue. This compares to $2.8 million, or 6.9 percent of revenue, during the second quarter of 2013.
Operating margin was 30.2 percent of revenue during the second quarter of 2014 compared to 31.8 percent during the second quarter of 2013.
As measured on a year-to-date basis, cash generated from operations totaled $26.0 million. Cash, cash equivalents and investments totaled $105.4 million as of June 30, 2014.
The company also announced that Chief Financial Officer Jack Judd will retire by the end of 2014. “Jack has been an integral part of our success and we will miss his leadership. His influence can be seen everywhere at the company from our initial public offering in 2012 through our consistent growth and profitability to, most recently, the completion of our first acquisition. I will personally miss his advice and guidance, but I know I speak for the Board of Directors and our employees in thanking Jack for his many contributions and wishing him well with his future endeavors. We have started a formal search process and are working diligently on finding a great candidate,” said Ms. Holt.