Revenue during the quarter went down marginally by 1.91 percent to $72.35 million from $73.76 million in the previous year period. Gross margin for the quarter contracted 24 basis points over the previous year period to 55.72 percent. Total expenses were 79.50 percent of quarterly revenues, up from 77.55 percent for the same period last year. That has resulted in a contraction of 195 basis points in operating margin to 20.50 percent.

Operating income for the quarter was $14.83 million, compared with $16.56 million in the previous year period.

However, the adjusted operating income for the quarter stood at $16.73 million compared to $18.65 million in the prior year period. At the same time, adjusted operating margin contracted 216 basis points in the quarter to 23.12 percent from 25.29 percent in the last year period.

“Our fourth quarter financial results continued to reflect the challenges that we faced throughout 2016 with general economic conditions affecting the R&D spending in certain industries, a trend that was felt with greater impact as we closed out the year,” said Vicki Holt, president and chief executive officer. “3D printing revenue growth remained healthy and we look for continued strong growth in this segment.

The company has spent $60.76 million cash to meet investing activities during the year as against cash outgo of $63.59 million in the last year.

Cash flow from financing activities was $7.85 million for the year, down 23.35 percent or $2.39 million, when compared with the last year.

Cash and cash equivalents stood at $68.80 million as on Dec. 31, 2016, up 44.37 percent or $21.14 million from $47.65 million on Dec. 31, 2015.

Working capital increases
Proto Labs Inc has recorded an increase in the working capital over the last year. It stood at $134.36 million as at Dec. 31, 2016, up 20.24 percent or $22.62 million from $111.74 million on Dec. 31, 2015. Current ratio was at 6.74 as on Dec. 31, 2016, up from 5.25 on Dec. 31, 2015.