Proto Labs CEO resigning; shares drop in spite of good results, guidance

In tandem with its Q3 results, Proto Labs (PRLB -6.8%) announces CEO Brad Cleveland is resigning once a successor is found.

Cleveland: "I've been the CEO from $1 million in revenue until today. I've thoroughly enjoyed the experience and would welcome the chance to someday do it all over again in another industry."

The announcement is leading Proto Labs to sell off even though the prototyping services firm beat Q3 estimates and issued solid Q4 guidance - revenue of $42M-$45M and EPS of $0.35-$0.39 vs. a consensus of $42M and $0.37 - on its CC (webcast).

Sales of Proto Labs' Protomold injection molding services rose 25% Y/Y in Q3 to $29.5M, and sales of its Firstcut machined parts services rose 39% to $12.5M. The number of product developers served rose 23% Y/Y, and spending per developer rose 5%.

Domestic sales (73% of revenue) rose 23%, and international sales rose 51%. Gross margin rose 90 bps Y/Y to 61.7%.

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