Stratasys Ltd. announced financial results for the second quarter of 2018.
Q2 2018 Financial Results Summary:
Revenue for the second quarter of 2018 was $170.2 million, compared to $170.0 million for the same period last year.
- GAAP gross margin was 49.1% for the quarter, flat compared to the same period last year.
- Non-GAAP gross margin was 52.5% for the quarter, compared to 53.0% for the same period last year.
- GAAP operating loss for the quarter was $1.9 million, compared to operating loss of $5.0 million for the same period last year.
- Non-GAAP operating income for the quarter was $10.6 million, compared to operating income of $11.1 million for the same period last year.
- GAAP net loss for the quarter was $3.6 million, or ($0.08) per diluted share, compared to a net loss of $6.0 million, or ($0.11) per diluted share, for the same period last year.
- Non-GAAP net income for the quarter was $8.1 million, or $0.15 per diluted share, compared to Non-GAAP net income of $9.2 million, or $0.17per diluted share, reported 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 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 recovery in high-end system orders in North America and in certain verticals, specifically our customers in government, aerospace, and automotive,” said Elchanan (Elan) Jaglom, Interim Chief Executive Officer of Stratasys. “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.”
Financial Guidance:
Stratasys today reiterated 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 $700 million.
- GAAP net loss of $41 to $25 million, or ($0.75) to ($0.46) per diluted share.
- Non-GAAP net income of $16 to $27 million, or $0.30 to $0.50 per diluted share.
- Non-GAAP operating margins of 4.5% to 6%.
- Capital expenditures are projected at $30 to $40 million, compared to 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.
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 will be the best measure of its performance.
Non-GAAP earnings guidance excludes $32 to $34 million of projected amortization of intangible assets; $17 to $19 million of share-based compensation expense; and $7 to $9 million in reorganization and other related costs; and includes $4 to $5 million in tax expenses related to non-GAAP adjustments.
Stratasys Ltd. Q2 2018 Conference Call Details
The Company plans to hold a conference call to discuss its second quarter financial results on Wednesday, August 1, 2018 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys website at www.stratasys.com under the "Investors" tab; or directly at the following web address: https://edge.media-server.com/m6/p/2hp76z7i.
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 7497765.
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 website or by accessing the provided web address.
