Aug 4, 2016 | By Benedict

Stratasys, the 3D printing services and equipment company, today posted its financial results for the second quarter of 2016. The company reported Q2 EPS of $0.12, $.06 above the analyst estimate of $0.06. Revenue for Q2 came in at $172.1 million.

Last week, financial research firm Piper Jaffray downgraded Stratasys from “Overweight” to “Neutral” in light of “significant industry slowdown,” lowering its 2016 and 2017 revenue and EPS (earnings per share) estimates for the Minneapolis-headquartered company below consensus. Today, Stratasys partially rebuked that assessment by posting better-than-expected EPS of $0.12, as well as Q2 revenue of $172.1 million and a GAAP (generally accepted accounting principles) net loss of $18.5 million.

“We were pleased to achieve further improvements in our operational performance during the second quarter,” said Ilan Levin, Chief Executive Officer of Stratasys. “Compared to the first quarter, we observed stronger margins and a substantial increase in non-GAAP operating profit. Our margins benefitted from a sales mix that favored our higher-end systems, including the recently launched J750, the industry’s most advanced full-color, multi-material 3D printer, as well as our ongoing efforts to improve operations, and reduce operating expenses.”

Summary of Stratasys Q2-2016 financial results:

  • Revenue: $172.1 million
  • GAAP gross margins: 46.2%, compared to 45.5% for Q2-2015
  • Non-GAAP gross margins: 55.9%, compared to 54.7% for Q2-2015
  • GAAP operating loss: $17.1 million, compared to loss of $33.5 million for Q2-2015.
  • Non-GAAP operating income: $10.2 million, compared to $3.7 million for Q2-2015
  • GAAP net loss: $18.5 million, or ($0.36) per diluted share, compared to loss of $22.9 million, or ($0.55) per diluted share, for Q2-2015
  • Non-GAAP net income: $6.2 million, or $0.12 per diluted share, compared to non-GAAP net income of $8 million, or $0.15 per diluted share, for Q2-2015
  • Generated $6.9 million in cash, currently holds approximately $253.9 million in cash and cash equivalents
  • GAAP R&D expenses: $24.4 million, 14% of net sales
  • GAAP EBITDA: $6.9 million
  • Non-GAAP EBITDA: $19.5 million

Recent business highlights for Stratasys include the appointment of CEO Ilan Levin, who replaced David Reis on July 1; the announcement of the new GrabCAD Print 3D printing workflow application; the addition of several manufacturing-focused enhancements for its Fortus series of FDM 3D printers; and the announcement of a new services and consulting branch. Levin commented that Stratasys’ “technological platforms and customer reach” are “unmatched within the industry” and encouraged investors to have faith in the company.

Stratasys' Fortus 3D printers (above) and GrabCAD Print application

Stratasys reiterated its revenue guidance of $700 to $730 million for the fiscal year ending December 31, 2016, as well as the following estimations for the same period: GAAP net loss of $84.0 to $67.0 million, or ($1.60) to ($1.28) per diluted share; Non-GAAP net income of $9 to $23 million, or $0.17 to $0.43 per diluted share. The company also provided the following information about its prospective performance and strategic plans for fiscal 2016:

  • Gross margins: 54% to 55%
  • Operating margins: 3% to 5%
  • Tax expense: $15 to $17 million (includes negative impact of the planned accounting treatment for tax valuation allowance)
  • Capital expenditures projected at $60 to $70 million, with approx. $45 million designated for completing new facility in Israel

“Over the past four years, since the merger of Stratasys and Objet, our company has undergone a major transformation, driven by initiatives that we believe are essential to our long-term success,” Levin added. “Enhancing the value of additive manufacturing for our customers will require significant investments in time and other resources to fully develop. Operational efficiency and improved financial performance will remain a priority as we continue to execute our strategy. As CEO of Stratasys, I am excited about our future and I look forward to the challenge of building on our company’s legacy as the industry leader in additive manufacturing.”

 

 

Posted in 3D Printer Company

 

 

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