Proto Labs, a leading online and technology-enabled, quick-turn, on-demand manufacturer, today announced financial results for the first quarter ended March 31, 2017. First quarter 2017 highlights include record revenues of $80.2 million, a 10.5% increase revenue compared to $72.6 million in the first quarter of 2016. The number of unique product developers and engineers served totaled 14,801 in the first quarter of 2017, which is an increase of 11.7 % over the first quarter of 2016.
Net income for the first quarter of 2017 was $12.2 million, or $0.46 per diluted share. Non-GAAP net income, excluding the after-tax expense of stock compensation, amortization of intangibles and unrealized foreign currency losses, was $13.6 million, or $0.51 per diluted share.
“We are pleased with the strong start to our fiscal year with double digit revenue growth across all services,” said Vicki Holt, President and Chief Executive Officer. “These results along with solid execution delivered a 14.4 percent increase in quarterly net income.”
Gross margin was 56.5 percent of revenue for the first quarter compared with 54.6 percent for the first quarter of 2016 and 55.7 percent in the fourth quarter of 2016. The Operating margin – also improving – was 22.1 percent of revenue during the first quarter of 2017 compared to 20.8 percent for the first quarter of 2016. The Company generated $18.8 million in cash from operations during the first quarter of 2017 resulting in an increase in cash and investment balances of $8.6 million to $201.3 million on March 31, 2017.
“Measured progress was made on our initiatives for 2017. We successfully launched insert molding and added PolyJet technology to our 3D printing service portfolio. From an operational standpoint, we continued to realize the benefits of our Proto Excellence continuous improvement program, allowing us to deliver the increased volume while improving our margins,” concluded Holt.
The company has included non-GAAP revenue growth that excludes the impact of changes in foreign currency exchange rates and non-GAAP revenue growth that excludes the impact of unprofitable Alphaform 3D printing contracts, discontinued manufacturing processes, and discontinued businesses in this press release to provide investors with additional information regarding the company’s financial results. Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company.
Proto Labs has also included non-GAAP operating margin, adjusted for stock-based compensation expense and amortization expense (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the company’s financial results. The company has also included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, and unrealized foreign currency activity (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the company’s financial results.