Stratasys EPS Beats By Dime
August 9, 2017
Stratasys, a provider of applied
additive technology solutions, reported financial results for the second
quarter of 2017. The firm noted adjusted earnings per share (EPS) of
$0.17 on revenues of $169.99 million. Investors were expecting an EPS of
$0.07 and $167.69 million in revenues.
Financial Results Summary:
Revenue for the
second quarter of 2017 was
$170.0 million, compared to $172.1 million for the
same period last year.
GAAP gross margin
was 49.1% for the quarter, compared to a GAAP gross margin of
46.2% for the same period last year, and 47.1% in the prior
margin was 53.0% for the quarter, compared to 55.9% for the same
period last year, and 51.2% in the prior quarter.
GAAP operating loss
for the quarter was $5.0 million, compared to a
loss of $17.1 million for the same period last
income for the quarter was $11.1 million,
$10.2 million for the same period last year.
GAAP net loss for
the quarter was $6.0 million, or ($0.11)
per diluted share, compared to a loss of $18.5 million,
or ($0.36) per diluted share, for the same period
Non-GAAP net income
for the quarter was $9.2 million, or $0.17
per diluted share, compared to Non-GAAP net income of
$6.2 million, or
$0.12 per diluted share, reported for the same period last year.
$10.9 million in cash from operations during the second quarter
and ended the period with $305.3 million in cash
and cash equivalents.
Net R&D expenses for
the quarter amounted to $23.3 million,
representing 13.7% of net sales.
"We continue to
allocate resources towards deepening customer engagement within our
key vertical markets, and we are pleased with our progress in
developing higher quality revenue opportunities," said Ilan
Levin, Chief Executive Officer of Stratasys. "In addition to these vertical market
initiatives, we are pleased with the market reception of our new
F123 Series, launched in February of 2017, which has resulted in
orders of over 1,000 units to date, and has generated significant
interest for rapid prototyping applications among professional
solution at the Paris Airshow for producing certifiable aircraft
interior parts which leverages a qualification program underway
with the FAA, National Institute
of Aviation Research, and America Makes. The Fortus 900mc
Aircraft Interiors Certification Solution consists of ULTEM 9085
thermoplastic, a new edition of the Fortus 900mc Production 3D
Printer with specialized hardware and software designed to
deliver highly repeatable mechanical properties appropriate for
aircraft interior part applications, and the qualification
processes and data to ease the certification process.
on the aerospace market with announcements of Fortus 900mc
Aircraft Interiors Certification Solution adoption by
leading parts supplier Western Tool & Mold to produce
certifiable aircraft cabin components, as well as
collaborations to leverage
Stratasys 3D printing solutions to accelerate
development and production of next-generation aircraft with
Boom Supersonic and Eviation Aircraft.
Manufacturing chosen by Airbus to produce 3D printed polymer
parts for use on A350 XWB aircraft, including non-structural
parts such as brackets, and other parts used for system
MakerBot's leadership in 3D printing for the education segment
with the announcement of My MakerBot, a Chromebook-compatible
in-browser platform for managing networked 3D printers and
connecting to Thingiverse, integration between My MakerBot and
Autodesk Tinkercad, and the new MakerBot Educators Guidebook,
the definitive how-to resource on 3D printing in the classroom.
"We have made
significant progress in developing solutions that target high-value
applications within our targeted markets, and we continue to focus
on aligning our resources around this long term strategy," continued
Levin. "We believe this strategy will allow us to help grow the
adoption of our products and services over time."
reiterated previously provided guidance for 2017. The Company's
guidance for projected revenue and net income (loss) for the fiscal
year ending December 31, 2017 is as follows:
Revenue guidance of
$645 to $680 million.
GAAP net loss
guidance of $53 to $39 million, or
($1.00) to ($0.73) per diluted
Non-GAAP net income
guidance of $10 to $20 million, or
$0.19 to $0.37 per diluted share.
the following additional guidance regarding the Company's projected
performance and strategic plans for 2017:
margin guidance of 3% to 5%.
guidance of $40 to $50 million.
the expected ongoing negative impact of not recording a tax benefit
on U.S. tax losses on the Company's non-GAAP net
income, the Company believes that the rate of growth in its non-GAAP
operating income will be the best measure of performance.
guidance for 2017 excludes
$34 million of projected amortization of intangible assets;
$18 to $20 million of share-based compensation
expense; $2 to $3 million in merger
and acquisition related expense; and $8 to $10
in reorganization and other related costs; and includes $3
$4 million in tax expenses related to non-GAAP adjustments.