Stratasys Releases Third Quarter 2018 Financial Results

Third Quarter Revenue of $162.0 million

Third Quarter GAAP net loss of $0.7 million, or ($0.01) per diluted share, and non-GAAP net income of $5.7 million, or $0.11 per diluted share

Generated $5.0 million of cash from operations during the quarter

MINNEAPOLIS & REHOVOT, Israel — (BUSINESS WIRE) — November 1, 2018 — Stratasys Ltd. (NASDAQ: SSYS) announced financial results for the third quarter of 2018.

Q3 2018 Financial Results Summary:

Revenue for the third quarter of 2018 was $162.0 million, compared to $155.9 million for the same period last year.

GAAP gross margin was 48.7% for the quarter, compared to 48.3% for the same period last year.
Non-GAAP gross margin was 52.1% for the quarter, compared to 52.5% for the same period last year.
GAAP operating income for the quarter was $3.4 million, compared to operating loss of $6.9 million for the same period last year.
Non-GAAP operating income for the quarter was $8.2 million, compared to operating income of $8.1 million for the same period last year.
GAAP net loss for the quarter was $0.7 million, or ($0.01) per diluted share, compared to a net loss of $10.2 million, or ($0.19) per diluted share, for the same period last year.
Non-GAAP net income for the quarter was $5.7 million, or $0.11 per diluted share, compared to Non-GAAP net income of $4.1 million, or $0.08 per diluted share, reported for the same period last year.
GAAP R&D expenses, net for the quarter amounted to $25.8 million, an increase of 18.5% compared to the same period last year.
The Company generated $5.0 million in cash from operations during the third quarter and ended the period with $348.9 million in cash and cash equivalents.

“We are pleased with our results this quarter, reflecting continued strength in our high-end systems orders, utilization rates and our parts services business,” said Elchanan (Elan) Jaglom, Interim Chief Executive Officer of Stratasys. “The level of engagement we are experiencing with customers in our key verticals is encouraging, as we highlighted at the recent International Manufacturing Technology Show. And we are excited about the innovation we plan to bring to market to drive incremental, long-term opportunities, as we continue to invest in new products and materials across our portfolio of FDM and PolyJet technologies, our new metal additive manufacturing platform, and advanced composite materials.”

Financial Guidance:

Stratasys today updated the following information regarding the Company’s guidance for projected revenue and net income for the fiscal year ending December 31, 2018:

Revenue guidance of $670 to $680 million, compared to previous guidance of $670 to $700 million.
GAAP net loss of $10 to $2 million, or ($0.19) to ($0.04) per diluted share, compared to previous guidance of net loss of $41 to $25 million, or ($0.75) to ($0.46) per diluted share.
Non-GAAP net income of $27 to $30 million, or $0.50 to $0.55 per diluted share, compared to previous guidance of net income of $16 to $27 million, or $0.30 to $0.50 per diluted share.
Non-GAAP operating margins are unchanged at 4.5% to 6%.

Stratasys also updated the following guidance regarding the Company’s projected performance and strategic plans for 2018:

Capital expenditures are projected at $25 to $35 million, compared to previous projection of $30 to $40 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.

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.

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