Stratasys Releases First Quarter 2017 Financial Results
GAAP net loss of
Q1-2017 Financial Results Summary:
Revenue for the first quarter of 2017 was
- GAAP gross margin was 47.1% for the quarter, compared to a GAAP gross margin of 48.3% for the same period last year.
- Non-GAAP gross margin was 51.2% for the quarter, compared to 55.1% for the same period last year.
GAAP operating loss for the quarter was
$12.6 million, compared to a loss of $21.1 millionfor the same period last year.
Non-GAAP operating income for the quarter was
$4.0 million, unchanged compared to non-GAAP operating income for the same period last year.
GAAP net loss for the quarter was
$13.9 million, or ( $0.26) per diluted share, compared to a loss of $23.1 million, or ( $0.44) per diluted share, for the same period last year.
Non-GAAP net income for the quarter was
$2.4 million, or $0.05per diluted share, compared to Non-GAAP net income of $0.6 million, or $0.01per diluted share, reported for the same period last year.
The Company generated
$25.4 millionin cash from operations during the first quarter and ended the period with $297.2 millionin cash and cash equivalents.
Net R&D expenses for the quarter amounted to
$24.6 million, representing 15.1% of net sales.
"We remain encouraged by our performance within our key vertical markets
during the first quarter, driven by our initiatives to drive customer
Recent Business Highlights:
Demonstrated continued traction in our strategic focus on customer use
cases and deepening collaboration with many industry leaders:
Siemens Mobility announced the manufacture of customized
production parts that include housing covers for the couplers on
the front of trams, utilizing Stratasys FDM technology for German
transport services provider
Stadtwerke Ulm/Neu Ulm (SWU) Verkehr GmbH, which resulted in a significant reduction in lead times and tooling costs.
McLaren Racingexpanded its production of final race-ready parts and manufacturing tools for the new McLaren MCL32 Formula 1 race car, utilizing Stratasys FDM and PolyJet 3D Printing Solutions.
Announced a strategic agreement with SIA Engineering Company
(SIAEC), a major provider of aircraft maintenance, repair, and
overhaul services in the
Asia-Pacific region, to help accelerate the adoption of 3D printed production parts for commercial aviation by establishing a Singapore-based Additive Manufacturing Service Centrethat offers design, engineering, certification support, and part production to SIAEC's well-established network of partners and customers.
Showcased the use of Stratasys PolyJet 3D printing technology, by
Queen Elizabeth Hospitalin the United Kingdom, for the construction of advanced maxillofacial cutting guides and anatomical models.
- Siemens Mobility announced the manufacture of customized production parts that include housing covers for the couplers on the front of trams, utilizing Stratasys FDM technology for German transport services provider
Enhanced customer-centric solution offerings with launch of the
Stratasys Expert Services Groupin North America, to help manufacturers build their additive manufacturing strategy and workflow to recognize the benefits of 3D printing for improved production processes.
- Announced the Stratasys Continuous Build 3D Demonstrator, a new additive manufacturing platform demonstrating low volume production and mass customization, featuring a modular multi-cell design and cloud-based architecture. The new technology demonstrator targets applications that include education Rapid Prototyping labs as well as volume manufacturing environments that can benefit from part production without tooling and from zero-inventory supply chains.
Announced a strategic investment in LPW Technologies, a developer of
metal powders and metal powder management systems; and entered into a
strategic partnership with
Desktop Metal, a manufacturer of metal 3D printing systems, that will enable leveraging Stratasys' distribution channels for the sale of their innovative solutions.
"We are pleased with the progress we are making in developing
applications that are driven by the specific needs of our customers,"
continued Levin. "We believe that this deeper customer engagement will
help us to provide significant value and grow the adoption our products
and services. Our recent announcements with Siemens Mobility and SIA
Engineering, as well as the early success of our collaboration with
Revenue guidance of
$645to $680 million.
GAAP net loss guidance of
$53to $39 million, or ( $1.00) to ( $0.73) per diluted share.
Non-GAAP net income guidance of
$10to $20 million, or $0.19to $0.37per diluted share.
- Non-GAAP operating margin guidance of 3% to 5%.
Capital expenditures guidance of
$40to $50 million.
Given the expected ongoing negative impact of not recording a tax
Non-GAAP earnings guidance for 2017 excludes
The Company plans to hold a conference call to discuss its first quarter
financial results on
The investor conference call will be available via live webcast on the Stratasys Web site at www.stratasys.com under the "Investors" tab; or directly at the following web address: http://edge.media-server.com/m/p/j59trooi.
To participate by telephone, the domestic dial-in number is (855) 319-2216 and the international dial-in is (503) 343-6033. The access code is 10010178.
Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for 90 days on the "Investors" page of the Stratasys Web site or by accessing the provided web address.
For nearly 30 years,
Cautionary Statement Regarding Forward-Looking Statements
The statements in this press release regarding
Use of non-GAAP financial measures
The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our Company in gauging our results of operations (x) on an ongoing basis after excluding merger and acquisition related expense and reorganization-related charges, and (y) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, impairment of goodwill and other long-lived assets, changes in fair value of obligations in connection with acquisitions and the corresponding tax effect of those items. We also exclude, when applicable, non-recurring changes of non-cash valuation allowance on deferred tax assets, as well as, non-recurring significant tax charges or benefits that relate to prior periods which we do not believe are reflective of ongoing business and operating results. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.
|Consolidated Balance Sheets|
|(in thousands, except share data)|
|Cash and cash equivalents||$||297,246||$||280,328|
|Accounts receivable, net||115,099||120,411|
|Net investment in sales-type leases||10,844||11,717|
|Other current assets||19,411||15,491|
|Total current assets||564,989||553,039|
|Net investment in sales-type leases - long term||9,655||12,126|
|Property, plant and equipment, net||206,722||208,415|
|Other intangible assets, net||169,302||177,458|
|Other non-current assets||31,626||29,382|
|Total non-current assets||803,113||813,010|
|LIABILITIES AND EQUITY|
|Current portion of long term-debt||3,714||3,714|
|Accrued expenses and other current liabilities||28,582||32,207|
|Accrued compensation and related benefits||42,797||34,186|
|Obligations in connection with acquisitions||4,315||3,619|
|Total current liabilities||174,886||164,611|
|Deferred tax liabilities||4,916||5,952|
|Deferred revenues - long-term||12,942||12,922|
|Other non-current liabilities||24,293||22,251|
|Total non-current liabilities||63,508||63,411|
|Redeemable non-controlling interests||1,939||2,029|
|Additional paid-in capital||2,637,561||2,633,129|
|Accumulated other comprehensive loss||(12,243||)||(13,479||)|
Equity attributable to
|Total liabilities and equity||$||1,368,102||$||1,366,049|
|Consolidated Statements of Operations|
|(in thousands, except per share data)|
Three Months Ended
|Cost of sales|
|Research and development, net||24,634||25,115|
|Selling, general and administrative||64,179||76,387|
|Change in the fair value of obligations in connection with acquisitions||696||727|
|Financial income, net||256||180|
|Loss before income taxes||(12,373||)||(20,880||)|
Income tax expenses
|Share in losses of associated company||(288||)||-|
|Net loss attributable to non-controlling interest||(130||)||(30||)|
Net loss attributable to
Net loss per ordinary share attributable to
|Weighted average ordinary shares outstanding|
|Reconciliation of GAAP to Non-GAAP Results of Operations|
Three Months Ended
|Gross profit (1)||$||76,880||$||6,614||$||83,494||$||81,169||$||11,278||$||92,447|
|Operating income (loss) (1,2)||(12,629||)||16,658||4,029||(21,060||)||25,013||3,953|
Net income (loss) attributable to
Net income (loss) per diluted share attributable to
|(1)||Acquired intangible assets amortization expense||5,705||10,414|
|Non-cash stock-based compensation expense||643||723|
|Reorganization and other related costs||94||-|
|Merger and acquisition and other expense||172||141|
|(2)||Acquired intangible assets amortization expense||2,544||3,760|
|Non-cash stock-based compensation expense||3,261||4,900|
|Change in fair value of obligations in connection with acquisitions||696||727|
|Reorganization and other related costs||1,686||-|
|Merger and acquisition and other expense||1,857||4,348|
|(3)||Corresponding tax effect||(585||)||(1,276||)|
|Amortization expense of associated company||192||-|
Weighted average number of ordinary shares outstanding- Diluted
|Reconciliation of GAAP to Non-GAAP Forward Looking Guidance|
|Fiscal Year 2017|
|(in millions, except per share data)|
|GAAP net loss||
|Stock-based compensation expense||
|Intangible assets amortization expense||
|Merger and acquisition related expense||
|Reorganization and other related costs||
|Tax expense related to Non-GAAP adjustments||
|Non-GAAP net income||
|GAAP loss per share||
|Non-GAAP diluted earnings per share||
Stratasys Investor Relations
Vice President - Investor Relations
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