3D Systems Corporation (NYSE:DDD) Q4 2014 Earnings Conference Call - Final Transcript

Feb 26, 2015 • 08:30 am ET


3D Systems Corporation (NYSE:DDD) Q4 2014 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the 3D Systems Corporation Fourth Quarter and Full Year 2014 Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would like to turn the conference over to your host, Stacey Witten of 3D Systems Corporation. Thank you. You may begin.

Stacey Witten

Good morning and welcome to 3D Systems conference call. I am Stacey Witten, and with me on the call are Avi Reichental, our CEO; Ted Hull, our CFO; and Andy Johnson, our Chief Legal Officer.

The webcast portion of this call contains a slide presentation that we will refer to during the call. Those following along on the phone who wish to access the slide portion of this presentation may do so via the web at www.3dsystems.com/investor.

Participants who would like to ask questions at the end of the session related to matters discussed in this conference call should call in using the phone numbers provided on the slide. The phone numbers are also provided in the press release that we issued this morning.

For those who have access the streaming portion of the webcast, please be aware that there may be a few second delay, and you will not be able to post questions via the web.

The following discussion and responses to your question reflect management's view as of today only and will include forward-looking statements as described on this slide. Actual results may differ materially. Additional information and factors that could potentially impact our financial results are included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K.

During this call, we will discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is available on our IR website. You will find additional disclosures regarding these non-GAAP measures including reconciliations of these measures with comparable GAAP measures. Finally unless otherwise stated all comparisons in this call will be against our results for the comparable period of 2013.

Now I will turn the call over to Avi Reichental, 3D Systems' President and CEO.

Avi Reichental

Good morning, everyone, and thanks for joining us today. For the fourth quarter of 2014, we generated record revenue of $187.4 million, representing a 21% increase over the comparable 2013 quarter despite significant foreign currency headwinds that reduced our total revenue by some $6 million during the quarter. We reported GAAP earnings of $0.01 per share and non-GAAP earnings of $0.21 per share.

Notwithstanding the challenging operating environment in Europe, we recorded an impressive 46% revenue increase from EMEA, driven by 28% organic growth. However channel productivity primarily in North America fell well short of our expectations restricting our total organic growth to 7% for the quarter.

Direct metals revenue increased by 178% and healthcare revenue grew by 96% with both vertical decisively surpassing industry