CNC Customize Parts Professional Solution & Processing Provider

proto labs, inc. (prlb)

by:QY Precision      2019-12-05
Washington, D. C. Securities and Exchange CommissionC. 20549FORM 10-K(Mark One)
Annual reports submitted under sections 13 or 15 (d)
According to the transition report of Section 13 or 15, the 1934 Securities Trading Act as of fiscal 31d)
Document Number of the transitional securities trading Law of 1934: 001-
Proto Labs, Inc. 35435(
The exact name of the registrant specified in the articles of association)Minnesota41-1939628(
Of a state or another jurisdiction (I. R. S.
Company or organization)
Identification Number)
5540 pioneer Creek DriveMaple plain, Minnesota55359 (
Main executive office address)(Zip Code)(763)479-3680(
The phone number of the registrant, including the area code)
Securities registered under section 12th (b)
Title of the act: the exchange name of the registered common stock with a face value of $0.
Securities of each ShareNew York stock exchange registered under section 12th (g)
Key points of the act: if the registrant is healthy, it is not indicated by a check mark
Well-known experienced issuers as defined in Rule 405 of the Securities Act.
Yesxno-indicate by check mark whether the registrant does not need to submit a report under Section 13 or section 15 (d)of the Act.
Indicate whether the registrant (1)
All reports requested in Section 13 or 15 have been submitted (d)
In the past 12 months, the Securities Trading Act of 1934 (
Or a short period of time required for the registrant to submit such reports), and (2)
This filing requirement has been bound for the last 90 days.
Yesxno-indicate by check mark whether the registrant has been electronically submitted and posted on its company website (if any), each interactive data file is required under S-regulations
12 months before T (
Or in such a short time that the registrant is required to submit and publish such documents).
Yesxno indicates by check mark whether the default declarant is disclosed in accordance with S-regulation item 405th
K is not included here, to the knowledge of the registrant, and will not be included in the final proxy or information statement referenced in Part ii of this Form 10 --
K or any amendments to this form 10K.
Indicate by check mark whether the registrant is a large accelerated declarant, a non-accelerated declarant
A smaller reporting company.
View the definitions of \"large accelerated file manager\", \"accelerated file manager\" and \"small Reporting Company\" in rule 12b
Article 2 of the Trading Act.
Largeaccelatedfiler \"accelatedfiler\" Non-
Accelerate filerx (
Do not check if there are smaller reporting companies)
Indicate whether the registrant is a shell company by check mark (
Defined in Rule 12b-2 of theAct).
Noxas of June 29, 2012 (
Last business day of the second fiscal quarter recently completed by the registrant)
Total market value of non-voting shares
The registrant\'s affiliates are approximately $162. 7 million.
As of March 8, 2013, a total of 25,120,156 shares of the common stock of the registered person had been issued.
The documents included in the reference section of the registrant\'s 2013 Annual Meeting of Shareholders Proxy Statement are incorporated in reference to the third part of this annual report Form 10 --K.
Table for ContentsPagePART IItem 1. Business project 1a.
14 items 1b of risk factors.
Unresolved staff comments item 28 2.
Project 3.
Item 4. Legal proceedings
The second part is the fifth mine safety disclosure.
The market for the purchase of equity securities by the registrant\'s common stock, related shareholder matters and issuers 30 item 6.
Selected 32 Financial Data 7.
Management discusses and analyzes the financial position and results of operating 35 project 7A.
Quantitative and qualitative disclosure of market risks
51 financial statements and supplementary materials 9.
Changes in accounting and financial disclosure of 75 9A and differences with accountants.
Control and procedures for Item 9B.
Other information part 75 IIIItem 10.
Project 11 directors, executive officers and corporate governance.
Compensation for project 12 execution 76.
Secured ownership of certain beneficial owners, management and related shareholders
Certain relationships and related transactions with independent directors
Main accounting fees and services section 76 of IVItem 15.
Annex and schedule of financial statements special Note on Forward-looking statements in this Annual Report on Form 10
K matters concerning non-historical or current facts move forward
Statement in the sense of the Private Securities Litigation Reform Act of 1995.
In some cases, you can identify the forward
After the speech: alimmay, alimtuswill, alimtuscowould, alimtuswowould, alimtusshowould, alimtustuscinct, alimtusintend, alimtusplan, alimtusantipiate, alimtusbelieve, alimtusestimate, the negation of predictions, projects, potentials, continuation or these terms or other similar terms, though not all moving forward --
The look statement contains these words.
These statements involve known and unknown risks, uncertainties, and other factors that may lead to significant differences in our results from the results expressed or implied in these statements.
In particular, some of the risks associated with our business include: the level of competition in our industry and our ability to compete;
Our ability to continue to sell to existing and new customers;
Our ability to respond to changes in the industry;
Ability to meet the needs of product developers;
Ability to meet the expectations of product developers for fast turnaround times and prices;
Any failure to maintain and enhance our brand;
We have the ability to handle a large number of designs and identify important opportunities in our business;
Adoption rate of E-
Commercial and 3D CAD software for product developers;
Loss of key personnel or failure to attract, integrate and retain additional personnel;
Ability to effectively expand and manage business growth;
The system interruption of our operating facilities, especially our location in the Maple Plains of Minnesota;
Our ability to protect intellectual property rights and not infringe on the intellectual property rights of others;
Our ability to operate effectively as a listed company.
Certain and other factors of these factors are described in the discussion of risk factors that appear in the first part of this annual report in table 10, Item 1A: risk factors
K and uncertainties detailed in this report and other reports and documents submitted to the Securities and Exchange Commission (SEC).
Other unknown or unpredictable factors may also have a significant adverse effect on our future results.
We cannot guarantee future results, level of activity, performance or achievements.
Therefore, you should not rely too much on these advances.
Look at the report.
Finally, we expressly deny any intention or obligation to update any forwarding
A statement reflecting subsequent events or circumstances. 3PART IItem1.
Business View to Lab, Inc.
Founded in Minnesota in 1999.
The laboratory of Terms teleproto, the laboratory of the Company, the business and the original Company of the reference laboratory used here.
And its subsidiaries.
We are leading online and technologyenabledquick-
Transforming custom part manufacturers into prototype and short part manufacturersrun production.
We provide real parts for product developers around the world, very fast, and they are under increasing pressure to bring finished products to market faster than their competitors.
We use computer digital control (CNC)
Processing and injection molding make custom parts for our customers.
Our know-how has eliminated most of the time.
Traditionally, it is necessary to consume and expensive skilled labor to quote and manufacture small batch parts.
Our customers carry out almost all business with us through the Internet.
Our service goal is to use three million-
Computer-aided design (3D CAD)
Software design products in different terminals-markets.
We have established our business in the US, Europe and Japan, and we believe this is the three largest geographic markets where these product developers are located.
We believe that we use advanced technology to enable us to provide significant advantages to many product developers at competitive prices, which is the main reason why we become a leading low-cost supplier
Mass customization. We believe low-
Due to the inherent inefficiency of quotation and equipment setting, batch manufacturing has always been a market with insufficient service. up and non-
Repeat engineering process required to produce custom parts.
Our customers usually order a small number of custom parts because they need a prototype to confirm the form, suitability and functionality of one or more components of the product being developed, or because they need parts that are initially supplied to support the pilot production and their high
Tooling is being prepared for mass production or due to the limited number of their products.
In these cases, we believe that our solution provides product developers with an excellent combination of speed, competitive price, ease of use and reliability that traditional custom parts manufacturers often cannot find
Our technology enables us to ship the parts within one working day after receiving the customer\'s design submission.
Our proprietary technology enables us to automate and integrate low purchase customization
Starting with our web interface, the product developer submits a 3D CAD part design through this interface.
We have developed complex algorithms to quickly analyze the geometry of the design to analyze its manufacturing capabilities.
In many cases, our software provides design modifications that enhance manufacturing to be presented in color to product developers
The coded 3D representation of the part.
Our automated pricing algorithm generates a fixed price that is included in a highly interactive network
Based on the quotation, the product developer is allowed to change various parameters and get the updated price immediately.
After entering the order online, our manufacturing software calculates the instructions required for CNC machines to make parts or related molds.
Our system is highly scalable and capable of handling a large number of design submissions.
Due to the above factors, we have greatly reduced the service to low-
While expanding our business, we offer more than 310,000 designs in 2012.
In addition, many of our customers tend to return to Proto Labs to meet their ongoing needs, with revenues of around 84%, 81% and 77%, 2011 and 2010 in 2012, from existing customers who placed orders with us in previous years.
Our current manufacturing services include CNC machining and plastic injection molding.
We are constantly seeking to expand the scope of the dimensions and geometric complexity of the parts that we can make with these processes, in order to expand the various materials that we can support and to identify additional manufacturing processes that we can apply technology, in order to better meet the changing preferences and needs of product developers.
If our existing single or limited source suppliers become unavailable or inadequate, our customer relationships, results of operations and financial position may be adversely affected.
We also plan to develop our business by further deepening the product developer field of our customer companies that we have already served, in the geographic market where we already have a fixed presence, we attract new customer companies to selectively enter the new geographic market.
Since its establishment in 1999, we have experienced tremendous growth.
Our total revenue has grown from $44 to now.
Between $4 million and $126 in 2008.
Millions in 2012.
Our business revenue has grown from $10 to $10.
Between $7 million and $34 in 2008.
2012 9 million.
4 Industry Overview our industry we serve product developers worldwide who bring newideas to market in the form of products that contain one or more custom mechanical parts.
Many of these product developers use 3D CAD software to create digital models that represent their custom part designs and then use them to create physical parts for prototyping, functional testing, market evaluation, or final production.
Custom prototype parts play a key role in product development as they provide product developers with the ability to confirm their expected performance requirements and explore design alternatives.
From our company\'s establishment in 1999 to December 31, 2012, we have completed orders for about 28,000 product developers.
In the early stages of the product development process, additive rapid prototyping processes such as stereo forming, selective laser sintering, melting deposition modeling, or 3D printing can be used to quickly generate approximate physical representation of parts, however, these indications generally do not meet the requirements of product developers for dimensional accuracy, cosmetic and material performance.
As an alternative or supplement to the rapid prototype of additives, CNC machining can be used to produce high volumes of low volume
High quality custom parts of metal or plastic, also used for follow-up
In functional testing, market evaluation, and production operations, plastic parts are usually manufactured using injection molding.
CNC machining and injection molding can produce parts according to the appearance, feel and performance of the finished product.
Trends that affect the product development process affect product developers around the world. Increasing E-
Business expectations the Internet is a tool that has been deeply integrated into the day-to-day activities of product developers, many of whom have begun to look forward to a complete set of integrated web-
Based on capacity and 24 hours a day, seven days a week, access to services from suppliers.
As product developers increasingly work with partners and suppliers in different regions and time zones, the Internet allows them to work together anytime, anywhere and access information instantly.
Product developers are under increasing pressure from global competitors to bring finished products to market first.
In addition, rapid advances in technology and consumer demand for the latest products are driving many industries to shorten the product life cycle.
This makes it even more important to quickly obtain prototype parts and identify problems in product design as early as possible to minimize delays.
3D CAD is increasingly used by product developers involved in mechanical part design with 3D CAD software, which has inherent advantages over 2D CAD because it provides a complete description of the geometric design of the part.
As a result, many of these product developers continue to migrate from using 2D CAD to using 3D CAD to meet their design needs.
The challenges faced by product developers affect the trends in our industry and bring various challenges to product developers.
5 insufficient turnaround time we believe that most traditional custom part manufacturers do not have the ability to automate the analysis of the design and then quickly quote, manufacture and ship custom parts to meet the time requirementsto-
Market demand for many product developers.
Offers and order placement for these custom part manufacturers can take days to weeks and often-to-
Face-to-face interaction
In addition, once an order is placed, traditional custom parts manufacturers often require a lot of manual work before they start manufacturing.
Low procurement difficulty-
We believe that many custom parts manufacturers prefer what is inherent in high asset utilization
As a result, mass production may drop or assign lower priority to lower priorityvolume orders.
Also, those manufacturers of custom parts that do take a low price
Bulk orders often lack the scale to produce a large number of different parts at the same time.
This is especially problematic for product developers who need multiple custom parts, as these developers may therefore need to diversify and coordinate orders between several manufacturers.
Lack of interactive network for most custom part manufacturers
We believe that most custom parts manufacturers lack the technology to provide an interactive network.
The interface and quotation system have brought great inconvenience to product developers.
Business usually can only be traded within working days and often requires face-to-face communicationto-
Faceinteractions are usually done without a network
Product developers expect Central convenience in other aspects of professional and personal life.
Many product developers find low cost
Mass custom parts manufacturing will become expensive due to the significant growth of manufacturersfrontnon-
High cost and support for recurring projects-
Mass production, both of which must be absorbed on a small number of parts.
Therefore, we believe that most custom parts manufacturers do not have good equipment to meet a large number of low
Price competitive bulk orders.
Our solutions we have developed proprietary software and advanced manufacturing processes to automate most of the skilled labor required for quotation, production engineering, and manufacturing of custom parts.
We believe in our interactive network.
Interface-based and highly automated processes meet the fast, efficient and cost-effective needs of many product developers
Effective means of obtaining low returns
Custom parts in bulk.
We also believe that using our advanced technology to bring speed and efficiency to product developers at competitive prices is the main reason why we become the leading low-cost supplier
Mass Customization-
Processing and injection molding parts.
Key elements of our solution include: advanced technology, reducing our network turnaround time
Many manuals and time automation based on interfaces and proprietary software
Get the consumption process that custom CNC usually requires-
Machining or injection molding parts from traditional suppliers.
From design submission to manufacturing analysis and feedback, quotation, order submission, mold design, tool path generation, and mold or part manufacturing, our platform automates many aspects of the whole process.
Our potential customers upload 3D CAD files of the parts they need through our website, usually in a few minutes, our software will analyze the productability of the product, if we can make the parts, returns a fixed price quote with any design modification suggestions.
Our quotation system is highly interactive, enabling our potential customers to change the material, completion, quantity or shipping schedule of the order and receive an updated quotation immediately.
After receiving the order, our software will automatically complete the mold design, tool path generation and mold or part manufacturing that usually requires skilled labor.
So in many cases we are able to quote the order within a few minutes and ship it within one working day.
Our network enhances customer experience
The client interface provides an easy way to submit a 3D CAD part design.
Our proprietary manufacturing analysis then quickly analyzes whether the part design is within our manufacturing capabilities.
In many cases, our software provides proposed design modifications to enhance manufacturing to be presented to product developers in an interactive manner containing colors
The coded 3D representation of the part.
This allows product developers to quickly determine the manufacturing, cost, and when parts can be shipped.
Our interactive quote can instantly understand the impact of changing various parameters of an order (such as material, finish, quantity, or shipping schedule.
Therefore, we provide a simple solution for product developers. to-
Consistent methods of using and obtaining custom parts. Attractive low
According to internal market research, we think we are very competitive in pricing at low prices. volume orders.
We believe this is a direct result of our technology and operational efficiency, both of which are designed for low
Mass production.
Many manual processes involved in the traditional quotation and manufacturing process are automated and integrated
Custom CNC-
Processing and injection molding parts, we have significantly reduced or eliminated most of the non-
Recurring Engineering labor costs associated with these processes.
These costs are usually a large part of the total cost at low cost.
Therefore, we can usually provide competitive prices for product developers at low prices.
Custom manufactured parts in batches.
Large-scale processing of a large number of unique parts design proprietary, highly scalable quotation techniques addresses traditional manual processes for submitting designs, analyzing their manufacturing capabilities, proposing design revisions, and generating price quotes.
This enables us to quickly analyze a large number of 3D CAD part design submissions and provide feedback to our potential product developer customers.
Out of only 2012 copies, we submitted a quote for more than 310,000 designs.
Our proprietary manufacturing automation technology is also highly scalable, enabling us to handle a large number of unique designs and efficiently manufacture related parts to meet the needs of product developers.
We believe that our leadership is based on some unique competitive advantages: advanced proprietary technology.
Custom parts for volume, including the usual time
Consumption steps for design submission, manufacturing analysis and feedback, quotation, order submission, mold design, tool path generation, mold or part manufacturing, and production management.
During our 13 years in providing customized tooling and parts manufacturing services to our customers, this technology has been developed and continuously expanded and perfected.
We believe that our proprietary technology gives us a huge advantage over our competitors, who often lack the expertise and resources to develop similar technologies.
We believe that we are usually the lowest speed supplier.
Custom CNC-
Machining or injection parts.
Many manual and time through automation-
Consumption usually needs to be low
We have built a unique advantage that our competitors lack similar capabilities.
Our proprietary technology and advanced manufacturing processes allow product developers to submit designs at any time and enable us to ship parts to our customers within one working day.
Our competitors usually take a few days to generate a price quote, and more time may be needed if the order parameters are subsequently changed by the product developer.
Special offers for activities
Unlike traditional custom parts manufacturers, our operating modes are designed for low efficiency
Mass production.
Our customer interactions occur primarily online, and our proprietary technology eliminates the usual use for manufacturing analysis and feedback, quotation, order submission, mold design, tool path generation, and mold or part manufacturing
These features usually account for a large part of the total cost at low cost.
Custom parts manufacturing environment in batches.
Our automation enables us to quote thousands of CNC-
We believe that very few of our competitors can do this.
Marketing and sales strength we have developed marketing expertise for product developers in existing customer companies and in companies we have not yet served.
We attract customers through a variety of marketing strategies, resulting in leading edge and strengthening the brand.
By December 31, 2012, we have generated a database of over 295,000 product developers representing current or potential future users of our services.
We also set up a professional
Led international sales organization focuses on quick follow-up of marketing leads and quote requests, understanding our customer internal plans, transforming potential customers into customers by communicating our value proposition and in existing customer companies
We believe that our marketing and sales organization is a key competitive advantage, and most of our competitors lack the expertise and resources to establish and maintain organized international projects of similar size.
We believe that the number of new custom part designs we handle and the size and diversity of our customer base give us a unique insight into the needs of our potential customers.
This allows us to focus our development resources in areas that we believe are significant opportunities for our business.
As of December 31, 2012, we have received more than 1,000,000 uploaded part designs, sent more than 875,000 parts quotes and shipped more than one, it provides approximately 28,000 product developers with 000 unique parts, representing more than 13,000 customer companies in all walks of life.
Our growth strategy the main content of our growth strategy is: increase the penetration rate of existing customer companies we plan to expand our customer base to include more product developers in companies that already use our services
When the purchase is low, individual product developers usually make or influence the supplier\'s choice
Custom parts in bulk.
We believe that it is an important opportunity for us to leverage highly satisfied product developers to encourage others in the same organization to take advantage of our services.
We have historically generated a large number of new customers through word. of-
Word of mouth referrals from other product developers, we plan to combine these referrals with the efforts of our marketing and sales teams to identify our services and market them to colleagues from existing customers.
Get a new customer company in the existing geographic market. We plan to leverage our marketing and sales capabilities to continue to serve product developers in companies that have not yet used our services.
Our presence in a geographic area with a large number of 3D CAD users provides us with a vast space for potential new customer companies to focus our marketing and sales efforts.
Expanding the scope of the parts we provide we regularly analyze the universe submitted by the customer\'s design and we are currently unable to manufacture these parts, and focus an important part of our R & D work on expanding the range of our parts that can be produced.
Since we first launched the prototype mold injection service in 1999, we have steadily expanded the size and geometric complexity of the injection parts we are able to manufacture, and we continue to expand the diversity of the materials we are able to support.
Similarly, since the first launch of our first cutting CNC machining service in 2007, we have expanded the range of parts sizes, design geometry and materials that we can support.
For example, in 2012, we expanded the number of materials we provided, including a variety of high temperature resins available through our Protomold injection molding services and steel, stainless steel, magnesium and copper in our first cutting processing service.
As we continue to expand the scope of our existing process capabilities, we are confident that we will meet the needs of a wider range of product developers, thus converting more requests for quotations into orders.
Introducing new manufacturing processes we seek to identify additional manufacturing processes and we can apply our technology and expertise to meet the needs of a wider range of product developers.
The introduction of new manufacturing processes can not only attract new customers, but also provide us with a leap forward.
Use our existing services to sell to our existing customer base.
As an example of the new manufacturing process, our first cut service was first launched in the United States in 2007 and has grown to 28% of our total revenue in the year ended December 31, 2012.
When we are convinced that there is enough market demand and we can provide the same advantages that our customers expect us to provide, we regularly evaluate new manufacturing processes to serve product developers, and introduce.
For example, in 2012, two of our largest research and development plans were developed around the contact of 8 magnesium and metal injection molding of steel alloys.
In the fourth quarter of 2012, we successfully launched the operation of the thixomocycling process and shipped mode magnesium parts to a small group of customers.
Due to the metal injection molding involving steel alloys, we have installed a complete production line and started the manufacturing and testing process of sample parts.
In 2013, we plan to continue to make progress in these initiatives to commercialize the products provided to our customers.
For disclosure of our historical R & D expenses, please see consolidated financial data Selected by Oasis.
We believe that there may be opportunities for growth by identifying and expanding to selected other geographic markets.
We are currently operating in the US, Europe and Japan, and we think most of the product developers in the world are there.
We entered the European market in 2005 and by 2012 the region accounted for about 18% of our total revenue.
We launched our business in Japan at the end of 2009, and while still in the development phase, there was enough growth there that prompted us to enter a larger facility in early 2012.
Although we do not have a specific plan to expand to any specific geographic market at present, we believe that there is an opportunity to meet the needs of product developers in selected new geographic areas, if these opportunities arise, we will continue to evaluate them.
For financial information on the geographic markets we operate, see Item 7.
Management Discussion and Analysis of the financial status and operational results in our consolidated financial statements
Leverage customers\' growing expectations for 24/7 full user accessFriendly E-
Business capabilities we plan to further enhance the functionality and ease of use of our platform and expand the capabilities of our technology to further increase automation to meet the changing needs of product developers around the world.
We believe product developers are already looking forward to the advanced web-
Based on the tools provided by their suppliers and the fully integrated Internet platform.
We will continue to use the Internet to provide a standardized interface for product developers through which they can upload their 3D CAD models and get firm, interactive quotes quickly and efficiently.
Our services provide many product developers with the ability to quickly and effectively outsource their low-end products. volume, quick-
Custom parts manufacturing.
See managementmanagement Review\'s discussion and analysis of the financial situation and results of operations for historical revenue generated by the first cut and Protomold.
First cutour first cut service is used commercially-
Available CNC machines cut plastic or metal blocks into one or more custom parts based on 3D CAD models uploaded by product developers.
Our efficiency stems from the automation and proprietary fixture processes programmed by these machines.
The first cut service is perfect for producing a small number of products, usually in the range of one to ten parts.
Protomold our Protomold service uses our 3D CAD-to-
CNC machining technology for automatic design and manufacture of aluminum injection molds and then for production of custom injection molds
Molded plastic parts in business
Equipment available.
Our Protomold service is used for prototyping and shortrun production.
The number of prototypes is usually between 25 and 100 parts.
Because we retain the ownership of the mold, customers who need short molds
In order to get the extra quantity, usually running production will go back to Protomold, usually up to 10,000 parts
They do this to support pilot production, and their high
Are preparing for mass production or because their products will only be released in a limited number.
These extra parts orders usually occur on about 50% of the molds we produce, usually about half of our total revenue.
When a product developer uploads one or more 3D cad models that represent the geometry of the desired part, the process of first cut and Protomold begins.
Our proprietary software uses complex algorithms to analyze 3D CAD geometry, analyze its manufacturing capabilities, and support the creation of interactive web-
A base quotation containing pricing and manufacturing information.
Then the link to the quote is e-
Mailed to product developers, who have access to quotes, change various order parameters, and see the impact on the price immediately before finalizing the order.
For the first cut, then review the toolpath and route it to our high
CNC machining center for execution speed.
In the case of Protomold, our proprietary software supports the toolpath needed to create mold design and manufacture mold assemblies, and then routes these parts to our CNC machining center for execution.
Once the mold is assembled, it is placed in one of our injection molding machines to make the required parts.
For our first cut and Protomold service, we shipped it within one working day of submitting the design.
We ship parts by small parcel public carrier in accordance with standard terms and conditions.
9 the following figure summarizes the technology-
The enabling process described above: our technology your technology eliminates most of the skilled labor traditionally associated with quotation and preparation for manufacturing new part designs.
Our proprietary software largely automates areas such as manufacturing analysis and feedback, price quotes, order submission, mold design, tool path generation, mold or part manufacturing and production management
The computing-intensive aspect of the software leverages the proprietary parallel processing software environment running within us.
Cluster Server for internal computing.
Manufacturing Analysis proprietary software analyzes 3D CAD models submitted by customers to determine to what extent they fit into our standardized manufacturing process.
In the case of CNC machining, this manufacturing analysis identifies features that may be too fragile to be processed and areas that cannot be processed at all.
For injection molding, identify problematic features such as cuts, thin areas, thick areas, and areas that require geometric adjustment to allow the part to pop up from the mold.
Many of our customers find this analysis particularly helpful because it can diagnose and prevent potential problems before manufacturing.
We can also provide flow analysis to identify parts that can be very thin and large, and the plastic will solidify before the mold is fully filled.
Our manufacturing analysis plays an important role in our automatic pricing algorithm. Web-
Based on the quotation, we named our first cut and Protomold automatic quotation system as the first quotation and prototype quotation.
Both provide interactive graphic quotes to customers in the form of a web page with color
The coded 3D representation of the part highlights features related to manufacturing.
In some cases, the functionality must be changed in order to be compatible with our process.
We also highlight and suggest possible design improvements to improve the manufacturing of parts, or to indicate possible deviations in the design of parts and how to manufacture them. The web-
Basedquotation allows the customer to change the material, completion, quantity, or shipping schedule of the order.
Prices displayed online-
After each change, the quote-based update is made immediately.
Mold Design our software technology and mold manufacturing system
After more than 13 years of development, a standardized and efficient process has been formed, allowing customers to use 3D CAD models to create the physical molds needed to make plastic parts.
Our software enables our mold designers to quickly create mold geometry specific to customer parts and automate the design of most other mold features, so in a traditional environment, eliminates the large amount of skilled labor that is usually associated with mold design.
10 automatic tool path generation with the support of our first cutting and Protomold services, our proprietary software automates the vast amount of skilled labor traditionally required to generate the parts and molds required for processing
Our software automation allows our users to complete the labor of a manufacturer who uses a commercial computer in a matter of minutes, which usually takes hours or days.
Aidedmanufacturing (CAM)software.
Parallel processing analysis can be made and the mathematical algorithm required to generate tool paths is highly computational.
We have developed a proprietary parallel processing software environment to speed up the processing of individual jobs and allow for direct scalability of a large number of jobs.
This software system usually runs on an industrial cluster. standard 64-
A bit computer connected to each other and the internal user\'s computer through an isolated Gigabit Ethernet LAN.
At present, we have clusters in multiple manufacturing facilities, two in the United States, one in the United Kingdom and Japan.
We developed a proprietary intranet-
Based on monitoring and control systems, we are allowed to monitor key aspects of our entire global operations in real time using an easy-to-understand management dashboard.
This system provides us with the ability to respond quickly to new information throughout the organization.
Marketing our international integrated marketing efforts create a leading position for our sales team and try to strengthen our reputation as a leader in fast turn, low turn
Customized manufacturing in batches.
Many of our marketing activities are carried out through the Internet.
We use marketing automation software to increase the productivity of our sales and marketing teams and track the results of all campaigns to improve the return on our marketing investments.
We maintain brand awareness with product developers by regularly distributing technical information, including design guidelines, Engineering white papers and quarterly magazines for product developers.
We also send product giveaways that highlight the injection molding technical aspects that we think product developers will be interested in.
We believe that these materials are key aspects of our leadership efforts.
Our ideas are cool!
Marketing plan, we plan to provide a total of $250,000 to entrepreneurs with cool ideas.
In addition to supporting entrepreneurs and innovative product development, we believe that this project will produce good will, news reports and written reports. of-
Reputation brand awareness.
Sales and customer service we maintain an in-house sales team trained in parts design fundamentals and manufacturing service capabilities, as well as key advantages of our services over alternative low cost methods
Custom parts manufacturing in batches.
We organize our sales team into two complementary roles: business development and customer management, the former focused on selling to new customer companies, and the latter focused on expanding sales to existing customer companies.
We believe our sales staff are good at researching customer companies and networks to find other product developers who may need our services.
We also have a team of customer service engineers who can support a highly technical engineering discussion with product developers as needed during the sales process.
Our revenues come from different customer groups, and none of our client companies accounted for more than 2% of our total revenue in 2012.
Low competitive market
Mass customized parts manufacturing is fragmented, highly competitive, and is affected by rapid and significant technological changes.
Our potential competitors include:house services.
Many large companies engaged in product development have built in-house Rapid Prototyping capabilities for CNC machining, injection molding or additives to support the prototyping requirements of their product developers.
Other custom manufacturers.
There are thousands of machine stores and plastic injection molding suppliers around the world.
The size and scale of these businesses range from very small specialty stores to large high
Batch manufacturers.
Alternative manufacturers.
In addition to CNC machining and injection molding, various manufacturing processes are provided by other suppliers.
We usually refer to the most famous of these processes as additive rapid prototyping, which has been commercialized under labels such as stereo molding, selective laser sintering, melting deposition modeling, and 3D printing.
We believe that the key competitive factors in our industry include: Speed: The turnaround time of quotation and parts;
Price: pricing of molds and pieces;
Quality: dimensional accuracy, surface finish, material performance, color and cleanliness;
Ability: size and size complexity of parts, supported materials and later
Provide processing;
Ability: ability to support parallel design of multiple parts;
And services: the overall customer experience from the web interface to the later stagesales support.
We believe that our competitive advantage puts us in a good position and makes us a leader in the market.
We also believe that in terms of the size of operations, revenue, number of customers and the number of parts sold, almost all of our current direct competitors are small and generally lack our technical capabilities.
However, our industry is growing rapidly, and other companies, including potential large companies and more mature companies with advanced technology capabilities, may start to focus on low
Custom parts manufacturing in batches.
These companies can compete more directly with us and our existing competitors, both of which can launch new products and services that we do not offer that may soon be recognized by the market.
Any of the above may adversely affect our ability to attract customers.
Intellectual property we believe that our patents, trademarks, service marks, commercial clothing, trade secrets, copyrights, domain names and other intellectual property rights are of value to our business, and rely on patents, trademarks and copyright laws to enter into trade secret protection and secrecy and/or agreement with employees, customers, suppliers and others to protect our ownership.
We have registered patents, trademarks and service trademarks that we consider appropriate in the United States and other jurisdictions.
As of December 31, 2012, the citation and manufacturing process of our own patents related to various aspects before haveapplications are as follows: jurisdictionissuedpatentsapplication spendingunited States151United Kindgom20Germany02Our patent expiration date from 2022 to 2031.
As of December 31, 2012, we also have about 11 registered US trademarks or service trademarks, in Europe and Japan, the most important trademarks such as proto labs, PROTOMOLD, first cut have the corresponding original quotation of PROTOMOLD in Australia, Canada and Mexico, the first quotation and the original process and the corresponding registration protection.
There is no guarantee that the steps we take to protect our ownership are sufficient or that third parties will not infringe or improperly infringe on these rights.
We have been subject to claims and expect to be subject to legal proceedings and claims from time to time during our normal business process.
In particular, we may face claims by third parties that we have violated their patents, trademarks or other intellectual property rights.
Such claims, even if not valuable, could lead to significant expenditures on finance and management of resources.
Any unauthorized disclosure or use of our intellectual property rights can make it more expensive for us to do business and harm the fruits of our operations.
12 employees in December 31, 2012, we have 622 employeestime employees.
None of our employees have a collective bargaining agreement.
We think we have a good relationship with our employees at the moment.
We also frequently use independent contractors and other casual staff across the organization to increase our regular staff.
We believe that our future success will depend to some extent on our continued ability to attract, hire and retain qualified personnel.
Our main executive office is located at Pioneer Creek Drive 5540, Maple Plan, Minnesota 55359, and our phone number is (763)479-3680.
Our website address is www. protolabs. com.
The information on our website does not form part of the form 10 annual report
K or any other report we submit or provide to SEC.
We offer free access to the various reports that we submit or provide to the SEC through our website, which are reasonably feasible as soon as they are submitted or provided.
These reports include, but are not limited to, our Annual Report on Form10
Quarterly Report on Form10
Q: Latest report on Form8
K and any amendments to these reports.
Our sec report can be accessed through the Investor Relations section of our website or through the sec website on www. sec. gov.
The executive officers of the registrants listed below are the names, ages, titles of our current executive officers, the years in which they were first appointed as executive officers, and employment over the past five years: Lawrence J.
Chairman and chief technology officer of the company
Edward E. , president, chief executive and director, Cleveland52
William M Bolton, vice president of Culture 46
John R. , vice president of marketing.
Chief Financial Officer Donald G.
Thomas H, chief operating officer, Krantz57
Former general manager of the laboratory. K. Jacqueline D.
John B. vice president of sales and customer service.
General manager of Tumelty42 Proto Labs, limited executive officers of the Company elected by the board of directors as appropriate, without fixed terms.
There is no family relationship between any executive or director of the company. Lawrence J. Lukis. Mr.
Lukis founded our company in 1999 and has served as our chairman and chief technology officer since November 2001. In 1985, Mr. Lukis co-
LaserMaster started the company. (Color span later)
He is an innovator in laser printing products for desktop publishers and large format color injection printers, serving as director and CTO from 1985 to 1997.
ColorSpan was acquired by MacDermid.
Was resold to Hewlett in 2000. Packard, 2007Mr.
Lukis is currently a member of the board of directors of Karbon Kinetics Limited.
Electric bicycle manufacturers. Bradley A. Cleveland. Mr.
Cleveland has been our president and chief executive since november01.
Before November 2001, Sir. Cleveland co-
AeroMet Corporation, a laser additive manufacturing subsidiary established at MTS Systems Corporation, served as its vice president. Edward E. Bolton. Mr.
Bolton has been our vice president of culture since September 2011.
September 2006, Mr. toSeptember 2011
Bolton worked as HR director at Ryt.
Packaging company Way Industries, LLC. William M. Dietrick. Mr.
Dietrick has been our vice president of marketing since May 2008 and served as international president of our subsidiary in Japan from April 2010 to October 2010.
From June 2005 to May 2008, Sir.
Dietrick partners have the premise of immersive sales, marketing consulting companies.
From December 2005 to February 2008, Sir.
General manager of Dietrickserved Witt Sales Co. , Ltd.
A vending machine and catering company.
From 2002 to 2005
Dietrick is vice president and general manager of landscape structure, a commercial playground equipment manufacturer. John R. Judd. Mr.
Judd has been our chief financial officer since June 2011.
From June 2006 to June 2011, Sir.
Judd served as chief financial officer of Compellent Technologies, Inc. , a network-Storage Company.
From October 2003 to July 2006, Sir.
Judd served as chief financial officer of ATS Medical.
A manufacturer of medical devices
Mr. from 2000 October 2003
Judd served as chief financial officer of the US healthcare systems holding company.
A manufacturer of medical devices
From 1997 to 1999
Judd has served as chief financial officer of the autonomous driving division of apogeebauises, Inc.
A glass technology companyDonald G. Krantz. Dr.
Krantz has been our chief operating officer since January 2007.
From November 2005 to January 2007, doctor.
Krantz is our vice president of development.
Before joining our company, Dr.
Krantz has held various roles in MTS Systems, Inc.
He is the builder of custom precision testing and advanced manufacturing systems, including Vice President of Business Unit, vice president of engineering, and recent CTO. Dr.
Krantz is an engineering researcher at Alliant Techsystems and Honeywell.
He was also named 2005 Outstanding Alumni of the University of Minnesota Department of Computer Science and Engineering. 13Thomas H. Pang. Dr.
He served as general manager of ProtoLabs G. K. (Japan)
From November 2010Dr.
He leads our business in Japan.
From June 1999 to November 2010, doctor.
Pang holds multiple positions in 3D Systems, Inc. , a 3D content-to-
Printing solutions, recently served as managing director and vice president of Asia
Pacific business of Japan 3D SystemsK.
And 3D Systems, respectively. Jacqueline D. Schneider. Ms.
Schneider has been our vice president of sales and customer service since February 2007.
From November 2005 to February 2007, Ms.
National Sales Director, Schneider services Communications
Works, LLC, global technology supplier. John B. Tumelty. Mr.
Tumeltyhas has been the general manager of our UK subsidiary, Proto Labs Co. , Ltd. since its establishment in July 2005. Mr.
Tumelty leads our business in Europe.
From March 1997 to June 2005, Sir.
Tumelty heldvarious is a supplier of automotive systems and has recently served as general manager. Item1A.
The following risk factors are important factors that may have a significant adverse impact on our business, financial position or operational results, as well as adverse effects on the value of our common stock investment.
The risks associated with our business we face huge competition and expect to face increasingly fierce competition in many aspects of our business, which may result in the impact of our operational results.
Low market
The manufacturing of mass customized parts is fragmented and competitive.
We compete with various custom parts manufacturers and methods for customers.
Some of our current and potential competitors include
House services, other custom manufacturers and suppliers of alternate manufacturing, such as those using stereo printing, selective laser sintering, modeling of molten deposition, and 3D printing.
In addition, some of our existing and potential competitors are researching, designing, developing and marketing other types of products and services.
We also anticipate that future competition may come from the development of relevant technologies for custom part manufacturing that are not included in our patents, from the issuance of patents to other companies, these companies may inhibit our ability to develop certain products or hinder improvements in existing technologies.
Our competitors may try to adopt and improve key aspects of our business model, such as developing technologies to automate the large amount of labor required to traditionally quote and manufacture low-cost products
Implementation of interactive web, batch customization
Build scalable operating models based on automated user interfaces, quotation systems, and/or.
Mass production. Third-
Square CAD software company can develop mold software-
Manufacturers, injection molding machines and CNC machine stores can be used to compete with our business model.
Additive manufacturers may develop stronger, higher temperature resins, or introduce other improvements to compete more effectively with us in the quality of the parts.
We may also establish alliances or relationships with other competitors or potential competitors from time to time.
If the company terminates this relationship and establishes alliances and relationships with our competitors, our business may be compromised.
Existing and potential competitors may have greater financial, technical, sales and marketing, manufacturing, distribution and other resource and name recognition than we do, and experience and expertise in intellectual property and operations in certain international venues, any of which can enable them to compete effectively with us.
Although we plan to continue to invest in the development of new technologies, processes and services, we cannot assure you that we will be able to maintain our current position, or continue to succeed in current and future sources of competition.
The challenge we face in developing new services is to look for services, and our automated quotation and manufacturing processes provide customers with compelling value proposition. We may not be able to find any new services with potential economies of scale that are similar to our molding and processing services.
If we do not keep up with the pace of technological change and introduce new technologies, processes and services, our demand for products and services may decline and our operating results may be affected.
14 Our success depends on whether we can provide products and services that meet the needs of product developers and effectively respond to changes in our industry.
Almost all of our revenue comes from rapid production and sales to product developers.
Use a small number of custom parts for prototyping, support for in-house manufacturing, and a limited number of product releases.
Our business has been affected by changes in product developer needs and preferences, rapid technological changes, new product and service introductions, and the emergence of new standards and practices, any of these can make our technology, products and services less attractive, less economical or outdated.
Within the fast range our customers need
Parts are reduced for any reason, which can have a significant adverse effect on our business and operational results and harm our competitive position.
In addition, the emergence of CAD simulation and other technologies may also reduce the demand for physical prototype parts.
Therefore, we believe that in order to remain competitive, we must constantly use our resources to improve and improve our technology, products and services.
In particular, we plan to increase our R & D efforts and continue to focus important parts of these efforts on areas such as our interactive user interface and manufacturing processes to further develop our technology, in the R & D program we mentioned, new manufacturing processes may be introduced to expand the range of parts we can make.
We believe that the successful implementation of this part of the business plan is critical to our ability to compete and grow our business in the industry, and we cannot guarantee that we can do so in a timely manner or at all.
It is particularly important to expand the range of parts we offer, as the limitations of manufacturing are the main reasons why we are unable to meet many of our quotation requirements.
There is no guarantee that resources dedicated to the execution of this aspect of our business plan will improve our business and operational results or lead to increased demand for our products and services.
Failure in this area may adversely affect our performance and damage our reputation and brand.
Even if we succeed in these areas, our industry faces rapid and significant technological changes, and our competitors may develop new technologies, processes and services that are superior to us.
R & D costs about $9. 1 million, $5. $2 million and $4.
The year ended December 31, 2012 was 3 million, 2011 and 2010 respectively.
Reference item 7.
Management-discussion and analysis of financial position and results of operations-Annual Report of Form 10
K. Additional discussions related to R & D costs.
Any failure to properly meet the needs of product developers or to respond to changes in our industry at a cost
An effective and timely basis, or at all, may have a significant adverse effect on our business and operational results and undermine our competitive position.
Our failure to meet the expectations of product developers for fast turnaround times will adversely affect our business and operational results.
We believe that many product developers are under increasing pressure from global competitors to bring finished products to market in the first place, which often leads to the need to quickly turn around custom parts.
We believe that our ability to quote, manufacture and ship custom parts quickly so far is an important factor in our achievement.
We can\'t guarantee that we can meet the growing expectations of product developers for fast turnaround times, especially when we expand our operations.
If we fail to meet customer expectations for turnaround time at any given period, our business and operational results may be affected.
Our failure to meet the price expectations of product developers will adversely affect our business and operational results.
Our demand for services is price sensitive.
We believe that our competitive pricing so far is an important factor in our performance.
Therefore, changes in our pricing strategy may have a significant impact on our business and revenue generation capabilities.
Many factors, including our production and personnel costs, as well as the pricing and marketing strategies of our competitors, will have a significant impact on our pricing strategies.
If we fail to meet the customer\'s price expectations for any given period, our demand for products and services may be negatively affected and our business and operational results may be affected.
The power of our brand is important to our business, and any failure to maintain and enhance our brand will undermine our ability to retain and expand our customer base and further penetrate our existing customers.
Since our products and services are mainly sold through our website, the success of our business depends on our ability to attract new customers and repeat customers to increase our business and increase our revenue.
The customer\'s perception and perceived value of our brand will largely depend on the success of our marketing work, and the fact that we are able to consistently deliver high quality custom parts and a positive customer experience within the required time frame, we may not be successful.
One of the main components of our business strategy is to continue to promote and strengthen our brand, and we have taken place and plan to continue to bear significant costs associated with advertising and other marketing efforts aimed at upgrading our brand.
We have launched marketing efforts through social media, but this marketing approach may not be successful, putting us at greater risk of inconsistent information and poor publicity.
We may choose to significantly increase the cost of the brand, but we are not sure if this investment is profitable.
If we fail to successfully maintain and upgrade our brand, this may have a negative impact on our business and revenue-generating capabilities.
15 our business depends to a certain extent on our ability to handle a large number of new part designs from different product developer groups and successfully identify important for our business based on these submitted materials
We believe that the number of new parts designs we handle and the size and diversity of our customer base give us a valuable insight into the needs of our potential customers.
We use this industry knowledge to determine where we should focus our development resources.
If the number of new part designs we deal with or the size and diversity of our customer base decreases, our ability to successfully find important opportunities for our business and meet the needs of product developers can be negatively affected.
In addition, even if we continue to work on a large number of new part designs and work with a large and diverse customer base, any industry knowledge we extract from these interactions cannot be guaranteed to be successfully used to help us identify important business opportunities or better understand the needs of product developers.
The loss of one or more key members of our management team or personnel, or our failure to attract, integrate and retain additional personnel in the future, may harm our business, and have a negative impact on our ability to successfully develop our business.
We are highly dependent on the continuous service and performance of key members and others of our management team.
Losing any one of these people, each of them is voluntary, can terminate his or her employment relationship with us at any time, may disrupt our operations, and seriously delay or prevent the achievement of our business objectives.
We believe that our future success also depends to some extent on our ability to identify, hire, train and motivate qualified people.
We operate in facilities in the United States, located in the Minni aporiis and metropolitan area. Paul of Minnesota
The shortage of qualified people in this area may require us to pay more to attract and retain key employees, thus increasing our costs.
In addition, we face fierce competition from qualified individuals from many companies, many of which have much greater financial and other resources as well as name recognition than we do.
We may not be able to attract and retain appropriately qualified individuals who can meet our growing operational, management and other requirements, or we may need to pay more compensation for this.
Our failure to attract, hire, integrate and retain qualified people can compromise our ability to achieve our business goals.
If we cannot develop our business as expected, our net sales, gross margin and operating margin will be adversely affected.
We are trying to make our business grow substantially.
To this end, we have and will continue to make significant investments in our business, including investments in our infrastructure, technology, and sales and marketing efforts.
Custom message
Chat Online
Chat Online
Chat Online inputting...
Sign in with: