Slide 1: Call and Webcast Conference First Quarter 2014
Call and Webcast nference First Quarter 2014
Slide 2: Presenters
Director Investor Relations President & Chief Executive Officer Senior Vice President & Chief Financial Officer Vice President & General Counsel
Slide 3: Welcome Webcast Viewers
Welcome Webcast Viewers © 1-866-515-2909 in the To listen to the conference United States via phone and to ask * 1-617-399-5123 from questions during our Q&A 4 . outside the United States session, please dial: © Participant Code: 69473318
Slide 4: Forward-looking statements
This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward- looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or products, underly
Slide 5: Operating Results
Operating Results Avi Reichental, President & CEO
Slide 6: Q1 2014 Highlights
Q1 2014 Highlights Robust demand for design and manufacturing printers, accelerated materials’ growth-rate and substantial unit sales increase combined to deliver 45% revenue growth to $147.8 million on expanding overall organic growth of 28% Expanded sales coverage by combining our direct and chann
Slide 7: First Quarter Revenue
First Quarter Revenue $in millions Qi Revenue by Category Printers & 20 $60.8 Other Products (2013 $39.7 Print $40. Materials 2013, $28.7 CY $4. Services 2013 $33.6 38% a $217 Healthcare 2013 ) $14.1 Consumer 2013) $3.9. 45% overall revenue growth 28% organic revenue growth
Slide 8: New products revenue
Sin millions ome $65.4 $60.0 $50.0 $00.0 $38.3 $20.0 3 $20.0 $10.0 $0.0 2012 2013 2014 Q1 new products revenue increased 71% over 2013 Launched 9 new products in Q1 2014 Products are considered new for the first 3 years of a product’s commercial life
Slide 9: Financial Results
Vice President and CFO Damon Gregoire, Senior
Slide 10: Income statement summary and drivers
Sin millions, except earnings per share Drivers Revenue Gross Profit Gross Profit Margin Operating Expenses % of Revenue Operating Income % of Revenue Net Income % of Revenue Diluted Earnings Per Share % Change Favorable/ Unfavorable) 44.7% 41.1% (83.4%) (45.7%) (17.1%) (16.7%) QO
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended March 31, (Sin miions, except per share amounts) 2014 2013 GAAP net income $49 $ 5.9 Cost of sales adjustments: Amortization of intangibles $01 $0.1 Operating expense adjustments: Amortization of intangibles $91 $ 38 Acquisition and severance expenses $ 1.0 $ 2.
Slide 12: Revenue by Category & Geography
Revenue by Category & Geography $in milions $175 $175 $180 S78 $150 $107.8 $125 $125 $102.1 Services $102.1 aa $100 ‘Asia-Pacific 27% si Materials 7 2% Europe $50 28% $50 ea 9 5 Printers : $25 6 North America $o $0 2013 2014 seis aia Q1 2014 recurring revenue accounted for 59% of total revenue
Slide 13: Gross profit by category
Sin millions First Quarter 2014 % Change Gross Gross Gross Profit Gross Profit Profit | Margin Profit Margin 35.5% (11.4%) Printers & other Print materials 44.7% 2.8% Services il 8 42.8% 3.2% Total 41.1.% (2.5%) 3D printers’ growth continues to surpass all other product categories Resulting mix dela
Slide 14: Operating expenses
$inmilions First Quarter GAAP Non-GAAP SG&A R&D Total Operating % of Revenue Columns may not foot due to rounding % Change Favorable/ (Unfavorable) (65.4%) (165.0%) (83.4%) % Change Favorable/ (Unfavorable) (47.2%) (165.0%) (74.8%) SG&A increase was driven by sales, marketing costs and infrastructur
Slide 15: Working Capital
Working Capital % Change March 2014 December 2013 | Favorable/(Unfavorable) Cash $ 306.7 $ 306.3 0.1% Inventory $ 86.0 S 75a (14.5%) Accounts Receivable $ 142.0 $132.1 7.5% Accounts Payable $56.4 $51.7 (9.1%) Working Capital S$ 433.8 $416.4 4.2% Cash on hand at March 2014 compared to the end of 2013
Slide 16: 2014 Guidance
¢ We expect annual revenue for 2014 to be in the range of $680 million to $720 million with greater growth during the second half of the year * We expect our GAAP earnings per share to be in the range of $0.44 to $0.56 and our non-GAAP earnings per share to be in the range of $0.73 to $0.85 with gre
Slide 17: Outlook and Progress
Outlook and Progress Avi Reichental, President and CEO
Slide 18: Business and Partnership Highlights
Business and Partnership Highlights Began R&D operations at acquired Wilsonville location, with a fully assembled team of 100 engineers, chemists and materials scientists using state of the art labs and facilities to support the accelerated development of next-generation 3D printing technology Made
Slide 19: Personalized surgery acquisition
Leading provider of 3D printing enabled, patient specific medical devices and personalized surgical treatments, including proprietary virtual surgical planning and clinical transfer tools Integrated 3D planning and printing combine as the digital thread to create a virtual-to-actual operating room i
Slide 20: Robtec
Robtec Creates strategic Latin American sales and service platform Provides significant in-region additive manufacturing service bureau capabilities, knowhow and customer relationships Expands global reach and ability to deliver the latest advanced manufacturing solutions and capabil Multiplexes res
Slide 21: Outlook for 2014
*This chartis intended to depict our expected relative 2014 growth rate trends in revenue categories. It is not to scale and does not indicate actual percentages or absolute amounts We entered the second quarter of 2014 with positive sales momentum and strong backlog, driven by increased demand from
Slide 22: Q&A Session
Q&A Session Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions Please direct all questions through the teleconference portion of this call © U.S.: 1-866-515-2909 To ask questions: ¢ International: 1-617-399-5123 © C
Slide 23: Thank You
Thank You