Proto Labs Reports Record Revenue And Net Income For The Second Quarter 2013

Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled quick-turn manufacturer, today announced its record financial results for the second quarter ended June 30, 2013.

Highlights include:
  • Revenue for the second quarter of 2013 increased to a record $39.7 million, 33 percent above revenue of $30.0 million in the second quarter of 2012.
  • The record quarterly revenue was achieved through a 22 percent increase in the number of product developers served combined with an increase of 8 percent in spending per product developer.
  • Net income for the second quarter of 2013 increased to a record $8.6 million, or $0.33 per diluted share. Non-GAAP net income, excluding the after tax expense of stock compensation, was $9.3 million, or $0.36 per diluted share. See “Non-GAAP Financial Measure” below.

“This past quarter again demonstrates that product developers value our services. Businesses today compete globally and need to use technology to accelerate their new ideas to the market. As the world’s fastest provider of CNC and injection-molded parts using engineering-grade materials and real manufacturing processes, we are well-placed to benefit from this trend and make product developers more successful,” said Proto Labs’ President and CEO Brad Cleveland.

Additional highlights include:
  • Gross margin was 62.5 percent of revenue in the second quarter of 2013 compared with 59.1 percent during the same quarter in 2012.
  • During the second quarter of 2013, spending on research and development, including the Protoworks initiatives, totaled $2.8 million, or 6.9 percent of revenue. This compares to $2.4 million, or 8.0 percent of revenue during the second quarter of 2012.
  • Operating margin was 31.8 percent of revenue during the second quarter of 2013 compared to 24.9 percent in the second quarter of 2012.
  • Gross margin in the second quarter exceeded the target model for the third consecutive quarter; and for the fourth consecutive quarter, operating margin also exceeded the target model.
  • As measured on a year to date basis, cash generated from operations totaled $19.4 million and expenditures on capital equipment were $6.1 million.

“Our sales and marketing teams dig deeper and wider in our customer base. We are making progress in our R&D efforts to expand the part envelope and services we offer. Our world-wide manufacturing teams stress both productivity and quality and these results are clearly seen in our excellent gross margins. We anticipate that all of these efforts will generate solid growth for our company in future quarters,” concluded Mr. Cleveland.

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