Stratasys releases fourth quarter and full year 2018 financial results


08-03-2019

Stratasys Ltd (NASDAQ: SSYS) has announced financial results for the fourth quarter and full year of 2018.

  • Fourth Quarter Revenue of $177.1 million and $663.2 million for full year 2018
  • Fourth Quarter GAAP net income of $6.3 million, or $0.12 per diluted share, and non-GAAP net income of $11.3 million, or $0.21 per diluted share
  • Generated $18.7 million of cash from operations during the quarter, and a record $63.7 million in cash from operations in full year 2018
  • Company releases full year 2019 earnings guidance

Stratasys Ltd. Q4 2018 Financial Results Summary:

Revenue for the fourth quarter of 2018 was $177.1 million, compared to $179.3 million for the same period last year.

  • GAAP gross margin was 49.1% for the quarter, compared to 48.7% for the same period last year.
  • Non-GAAP gross margin was 52.2% for the quarter, compared to 52.5% for the same period last year.
  • GAAP operating loss for the quarter was $3.8 million, compared to operating loss of $6.0 million for the same period last year.
  • Non-GAAP operating income for the quarter was $12.8 million, compared to operating income of $13.5 million for the same period last year.
  • GAAP net income for the quarter was $6.3 million, or $0.12 per diluted share, compared to a net loss of $10.0 million, or ($0.19) per diluted share, for the same period last year.
  • Non-GAAP net income for the quarter was $11.3 million, or $0.21 per diluted share, compared to Non-GAAP net income of $8.4 million, or $0.16per diluted share, reported for the same period last year.
  • The Company generated $18.7 million in cash from operations during the fourth quarter and ended the period with $393.2 million in cash and cash equivalents.

“We are pleased with our fourth quarter and full year profitability, and finished 2018 with record cash flow from operations as we continue to build a strong operational foundation for future growth opportunities and to invest in accelerating new product introductions to expand our addressable markets,” said Elchanan (Elan) Jaglom, Interim Chief Executive Officer of Stratasys.

“Our consolidated top line results this quarter reflect continued positive traction in high-end system and materials sales for our PolyJet and FDM technology platforms, primarily in North America, offset partially by the impact late in the quarter of the government shutdown in the United States and what we believe is temporary weakness in the Automotive sector in Europe.”

Fiscal 2018 Financial Results Summary:

  • Revenue for fiscal 2018 was $663.2 million compared to $668.4 million for fiscal 2017.
  • GAAP operating loss for fiscal 2018 was $8.8 million, compared to a loss of $30.5 million for fiscal 2017.
  • Non-GAAP operating income for fiscal 2018 was $36.5 million, compared to $36.7 million for fiscal 2017.
  • GAAP net loss for fiscal 2018 was $11.0 million, or ($0.22) per diluted share, compared to a loss of $40.0 million, or ($0.75) per diluted share, for fiscal 2017.
  • Non-GAAP net income for fiscal 2018 was $27.8 million, or $0.52 per diluted share, compared to non-GAAP net income of $24.2 million, or $0.45per diluted share, reported for fiscal 2017.
  • The Company generated a record $63.7 million in cash from operations in fiscal 2018.

Financial Guidance:

Stratasys today provided the following information regarding the Company’s guidance for projected revenue and net income for the fiscal year ending December 31, 2019:

  • Revenue guidance of $670 to $700 million.
    • As the Company stated on the earnings call today, revenue is expected to grow during the first half of 2019, excluding the impact of 2018 divestitures. The Company clarifies that it expects the 2nd half of 2019 will represent 51%-53.5% of the 2019 revenue. Revenue is subject to the variability that may be caused by the shifting of large orders.
  • 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 $0.70 per diluted share.

Stratasys also provided the following guidance regarding the Company’s projected performance and strategic plans for 2019:

  • 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 $32 million of projected amortization of intangible assets; $20 to $22 million of share-based compensation expense; reorganization related and other expense of $1 to $2 million; and includes ($3) to ($4) million in tax expenses related to non-GAAP adjustments.

“We are entering into 2019 with an impressive roadmap of new technology and products, and continued, steady progress in customer adoption of our additive manufacturing solutions for advanced applications in our target verticals of aerospace, automotive, healthcare, and high-realism rapid prototyping,” continued Jaglom. “We are excited about our recent and upcoming new product introductions and believe that we will see accelerated growth beginning in 2020.”

 

Stratasys is a global leader in additive manufacturing or 3D printing technology, and is the manufacturer of FDM® and PolyJet™ 3D Printers. The Company’s technologies are used to create prototypes, manufacturing tools, and production parts for industries, including aerospace, automotive, healthcare, consumer products and education. For 30 years, Stratasys products have helped manufacturers reduce product-development time, cost, and time-to-market, as well as reduce or eliminate tooling costs and improve product quality. The Stratasys 3D printing ecosystem of solutions and expertise includes: 3D printers, materials, software, expert services, and on-demand parts production. Online at: www.stratasys.com,http://blog.stratasys.com and LinkedIn.

Stratasys is a registered trademark and the Stratasys signet is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates. All other trademarks are the property of their respective owners.

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