3D Systems Corporation (NYSE: DDD) announced today non-GAAP adjusted earnings of 27 cents per share for the fourth quarter of 2011 and GAAP earnings of 16 cents per share.
Revenue increased 35% to $69.9 million for the fourth quarter of 2011 and 44% to $230.4 million for the full year. Printer units grew 190% for the quarter and 242% for the year resulting in record printer revenue and units shipped.
To facilitate a better understanding of the impact that several significant strategic acquisitions had on its financial results, with today’s earnings release the company began to report non-GAAP measures which adjust net income and earnings per share by excluding the impact of stock-based compensation, amortization of intangibles, non-cash interest expense, non-recurring acquisition expenses and the release of the valuation allowance on deferred tax assets. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
For the full year 2011 the company reported non-GAAP adjusted net income of $41.0 million resulting in $0.81 per share, up 69% compared to full year 2010, and GAAP net income of $35.4 million, or $0.70 per share.
Gross profit increased 32% for the fourth quarter and 47% for the full year 2011. Gross profit margin expanded 100 basis points to 47% for the full year 2011, reflecting steady progress from the company’s effective integration and cost down initiatives. The company reported that its annual gross profit margin excluding all acquisitions since 2009 expanded from 47% for full year 2010 to 52% for full year 2011. The company’s annual gross profit margin excluding all businesses acquired during 2011 improved from 46% for 2010 to 49% for 2011. The company’s reported fourth quarter and full year total gross profit margin of 47% primarily reflected the expected temporary drag from its more recently acquired businesses with higher concentration of acquisitions during the second half of 2011.
The company generated $27.7 million of cash from operations for the year 2011, after incurring a $21.1 million increase in its operating expenses from previously announced and expected acquisition costs, litigation expenses and higher sales costs. The annual increase included a $3.6 million increase in R&D expenditures in support of its Cubify.com consumer initiative and a number of significant new product launches that occurred during the second half of the year.
“We are very pleased with our continued strong performance and record quarterly and annual results,” said Abe Reichental, 3D Systems’ President and Chief Executive Officer. “We are thrilled that our print materials revenue topped $20 million for the quarter and $70 million for the full year on tripling printer units that we sold to manufacturers and consumers alike, underscoring the power of our recurring revenue engine and the value of our differentiated approach.”