Financial Reports

Vertical-specific aerospace and dental systems help Stratasys bounce back in Q2 2018

Revenues are stable but the AM industry leader beat estimates

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Stratasys, a global leader in additive technology solutions, closes its second quarter of the 2018 fiscal year with revenues for $170.2 million. Sales were stable if compared to $170.0 million for the same period last year, but results beat initial estimates and seem to indicate an upcoming rebound for the company after a challenging period.

In terms of operating margins, GAAP loss for the quarter was $1.9 million, which was significantly reduced compared to an operating loss of $5.0 million for the same period last year. Non-GAAP income for the quarter was $10.6 million, compared to operating income of $11.1 million for the same period last year. Net profif results were similar, with GAAP loss for the quarter at $3.6 million, or ($0.08) per diluted share, also reduced compared to the net loss of $6.0 million, or ($0.11) per diluted share, for the same period last year.

Net R&D expenses for the quarter amounted to $23.7 million, an increase of 1.9% compared to the same period last year. The Company also generated $13.0 million in cash from operations during the second quarter and ended the period with $346.7 million in cash and cash equivalents.

“Our second quarter revenue was in-line with our expectations for the period, as we saw a recovery in high-end system orders in North America and in certain verticals, specifically our customers in government, aerospace, and automotive.” Elchanan (Elan) Jaglom, Interim Chief Executive Officer of Stratasys.

Jaglom added that the company’s executives “[We] are pleased with the increased adoption we are seeing for our production-focused solutions, including our new F900 Aircraft Interiors Certification Solutions (AICS) 3D Printer and our J700 Dental 3D Printer, both of which address the unique needs of production applications in their respective verticals for aerospace and dental. We continued our positive trend of cash generation and operational discipline, while we also continue to ramp up our investments in our core FDM and PolyJet technologies, new metal additive manufacturing platform, advanced composite materials, and software and application development.”

The stock market approved the company’s results, with the stock climbing significantly in the days immediately following the financial results announcement (see chart below).

A brighter future

Stratasys reiterated projected revenues of $670 to $700 million and a GAAP net loss of  $41 to $25 million for the fiscal year ending December 31, 2018.

Capital expenditures are projected at $30 to $40 million, compared to the previous projection of $40 to $50 million.
The Company’s guidance reflects increased investments in R&D, tools, materials, and additional resources aimed at expanding addressable markets by accelerating development efforts for the new metal additive manufacturing platform, further advancements based on its FDM and PolyJet technologies, and specific go-to-market initiatives in order to deepen customer engagement.

Stratasys Q2 2018

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Davide Sher

Since 2002, Davide has built up extensive experience as a technology journalist, market analyst and consultant for the additive manufacturing industry. Born in Milan, Italy, he spent 12 years in the United States, where he completed his studies at SUNY USB. As a journalist covering the tech and videogame industry for over 10 years, he began covering the AM industry in 2013, first as an international journalist and subsequently as a market analyst, focusing on the additive manufacturing industry and relative vertical markets. In 2016 he co-founded London-based VoxelMatters. Today the company publishes the leading news and insights websites and, as well as VoxelMatters Directory, the largest global directory of companies in the additive manufacturing industry.

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