Stratasys Releases First Quarter 2019 Financial Results
First Quarter Revenue of
First Quarter GAAP net loss of
Q1 2019 Financial Results Summary:
Revenue for the first quarter of 2019 was
- GAAP gross margin was 49.2% for the quarter, unchanged from the same period last year.
- Non-GAAP gross margin was 52.0% for the quarter, compared to 52.8% for the same period last year.
GAAP operating loss for the quarter was
$3.3 million, compared to operating loss of $6.5 millionfor the same period last year.
Non-GAAP operating income for the quarter was
$6.8 million, compared to non-GAAP operating income of $4.9 millionfor the same period last year.
GAAP net loss for the quarter was
$2.3 million, or ($0.04)per diluted share, compared to a net loss of $13.0 million, or ($0.24)per diluted share, for the same period last year.
Non-GAAP net income for the quarter was
$5.7 million, or $0.10per diluted share, compared to non-GAAP net income of $2.7 million, or $0.05per diluted share, reported for the same period last year.
The Company generated
$4.6 millionof cash from operations during the first quarter and ended the period with $367.8 millionof cash and cash equivalents.
“We are pleased with our first quarter top-line results, and are
particularly encouraged by the continuation of the strong performance we
have seen in
Recent Product Announcements
At the recent
- F120 3D Printer – an industrial-grade system targeting customers new to additive manufacturing. Offering the benefits of the Stratasys F123 platform at an affordable price with reliable, accurate, and repeatable 3D printing, it is specifically designed for designers, engineers and educators.
- V650 Flex Stereolithography 3D Printer – Stratasys’ first commercially-available entry into the stereolithography marketplace, combining the power of a large-scale system with an open, configurable environment and fine-tuning across a broad range of available resins.
- Stratasys J750 and J735 Printers are now the first and only 3D printing systems with technology officially recognized as “Pantone-Validated” – allowing for synchronized color communication between designers, modelers and manufacturers.
Revenue guidance of
$670 to $700 million.
GAAP net loss of
$22 to $12 million, or ($0.40) to ($0.22)per diluted share.
Non-GAAP net income of
$30 to $38 million, or $0.55 to $0.70per diluted share.
- Non-GAAP operating margins of 5.5% to 6.5%.
Capital expenditures are projected at
$45 to $60 million.
Given 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 is the best measure of its performance.
Non-GAAP earnings guidance excludes
The Company plans to hold the 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 investors.stratasys.com; or directly at the following web address: https://edge.media-server.com/m6/p/cwyibwsv.
To participate by telephone, the domestic dial-in number is (866) 394-5776 and the international dial-in is (409) 350-3596. The access code is 2949608.
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 "Investor Relations" page of the Stratasys Website or by accessing the provided web address.
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 mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and (y) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets, and the corresponding tax effect of those items. 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)|
|March 31,||December 31,|
|Cash and cash equivalents||$||367,843||$||393,167|
|Accounts receivable, net||128,420||138,146|
|Net investment in sales-type leases||2,193||2,658|
|Other current assets||21,023||20,278|
|Total current assets||658,960||684,171|
|Net investment in sales-type leases - long term||965||1,552|
|Property, plant and equipment, net||188,255||188,150|
|Other intangible assets, net||101,486||107,274|
|Operating lease right-of-use assets||27,408||-|
|Other non-current assets||22,456||21,258|
|Total non-current assets||726,182||704,083|
|LIABILITIES AND EQUITY|
|Current portion of long term-debt||-||5,143|
|Accrued expenses and other current liabilities||29,831||39,115|
|Accrued compensation and related benefits||35,516||31,703|
|Operating lease liabilities - short term||9,439||-|
|Total current liabilities||171,816||175,781|
|Deferred tax liabilities||1,391||1,662|
|Deferred revenues - long-term||17,307||18,422|
|Operating lease liabilities - long term||18,481||-|
|Other non-current liabilities||28,474||27,422|
|Total non-current liabilities||65,653||69,506|
|Redeemable non-controlling interests||809||852|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 54,048 thousands shares and 53,881 thousands shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively
|Additional paid-in capital||2,687,499||2,681,048|
|Accumulated other comprehensive loss||(7,185||)||(7,753||)|
|Total liabilities and equity||$||1,385,142||$||1,388,254|
|Consolidated Statements of Operations|
|(in thousands, except per share data)|
|Three Months Ended March 31,|
|Cost of sales|
|Research and development, net||22,574||25,110|
|Selling, general and administrative||57,154||57,005|
|Financial income, net||753||8|
|Loss before income taxes||(2,518||)||(6,457||)|
|Income tax expenses||1,218||601|
|Share in profits (losses) of associated companies||1,423||(6,073||)|
|Net loss attributable to non-controlling interests||(43||)||(90||)|
|Net loss attributable to Stratasys Ltd.||$||(2,270||)||$||(13,041||)|
|Net loss per ordinary share attributable to Stratasys Ltd.|
Reconciliation of GAAP to Non-GAAP Results of Operations
|Three Months Ended March 31,|
|U.S. dollars and shares in thousands (except per share amounts)|
|Gross profit (1)||$||76,457||$||4,252||$||80,709||$||75,650||$||5,599||$||81,249|
|Operating income (loss) (1,2)||(3,271||)||10,075||6,804||(6,465||)||11,387||4,922|
Net income (loss) attributable to Stratasys Ltd. (1,2,3)
Net income (loss) per diluted share attributable to Stratasys Ltd. (4)
|(1)||Acquired intangible assets amortization expense||3,898||5,204|
|Non-cash stock-based compensation expense||354||387|
|Merger and acquisition related expense||-||8|
|(2)||Acquired intangible assets amortization expense||1,889||2,558|
|Non-cash stock-based compensation expense||3,875||3,028|
|Reorganization and other related costs||59||1,671|
|Gain from sale of plant and property||-||(1,563||)|
|Merger and acquisition related expense||-||94|
|(3)||Corresponding tax effect||(544||)||(792||)|
|Gain from equity method divestment, related write-offs and amortization||(1,604||)||5,168|
Weighted average number of ordinary shares outstanding- Diluted
|Reconciliation of GAAP to Non-GAAP Forward Looking Guidance|
|Fiscal Year 2019|
|(in millions, except per share data)|
|GAAP net loss||($22) to ($12)|
|Stock-based compensation expense||$20 to $22|
|Intangible assets amortization expense||$32|
|Reorganization related expense||$1 to $2|
|Tax expense (Income) related to Non-GAAP adjustments||($4) to ($3)|
|Non-GAAP net income||$30 to $38|
|GAAP loss per share||($0.40) to ($0.22)|
|Non-GAAP diluted earnings per share||$0.55 to $0.70|
Stratasys Investor Relations
Vice President - Investor Relations