DDD's revenues soar on increased royalties

A sharp increase in royalty payments from original equipment manufacturers (OEMs) saw revenues go through the roof in 2011 at DDD, the AIM-listed 3D solutions company.Though its auditor has not finished totting up the numbers yet, DD said it expects revenue for the year ended December 31st to be up 173% from the previous year, in line with its expectations. Revenue is set to reach $5.5m, boosted by nearly a 200% increase in royalty revenues to $4.5m from original equipment manufacturer licensees. Gross margin is expected to be 94%, up two percentage points from 2010. Cash at the year-end was around $3.1m.Chris Yewdall, DDD's Chief Executive Officer said: "During the second half of the year we established a greater balance of revenue contribution from the TV, PC and smartphone markets. This reduces our dependency on any single customer and on seasonal demand in any specific market."Our TriDef 3D solutions continue to lead the field in the rapidly growing 3D consumer device market, shipping in more than nine million products in 2011."The growth in PC software shipments reflects our focus on signing agreements in this market since late 2010. We expect 2012 growth to continue as existing license agreements become active, as we develop opportunities in the emerging smartphone and tablet market, and as shipments by our existing licensees develop in the PC, TV and smartphone markets."NR