Currently, Stratasys (SSYS) released its financial results for the last quarter of 2015 and for the year 2015. After a string of complex quarters in 2014 and 2015, the company looks like it managed to stabilize its operations. Revenues at $173M in the last quarter are in line with the company’s last forecast and show a 3% increase of Q3/15. More importantly, here are the highlights of today’s release:

  • adonlyed net income is only at breakeven,
  • the net cash position has slightly increased to $258M. This is the initially increase in most quarters,
  • mid-range 2016 revenues expectation show a 3% growth of 2015 numbers,
  • margin can stay high at 54-55%, and
  • investment stays under control.
2015 Q4/15 2016 (forecast)
Number of units shipped 24 363 4 629
Revenues ($M) 696 173 700-730
Gross Margin (%) 52 48 54-55
EBIT – adonlyed -16 -9 25
Net Cash 258 258 n/a

Stratasys refocused its business on its core activities in 2015, reduced its cost base with a minimize in headcount by 10% and cleaned its balance sheet. The positive cash generation in the last quarter is a quite positive note. With investment expected under control in 2016, the company should regain confidence of investors after 2 quite complex years.

A clear and cohesive strategy for 2016

Joshua Claman, CBO Stratasys

Joshua Claman, CBO Stratasys

In a new interview I had with Joshua Claman, the Chief Business Officer noted which Stratasys has managed to define a cohesive strategy all along the 3D printing value chain, of prototyping to end users 3D printed parts. Joshua insisted which the management team is quite focused on expanding the business based on the sturdy and clean foundation laid out in 2015. He unquestionably showed confidence in the ability for Stratasys to innovate and grow in a competitive environment.

I stressed a few weeks ago which Stratasys’ shareholder base has changed significantly in the last 6 months. Old guns have left, leaving space for activists. Baillie Gifford, the century old investment firm which was the biggest shareholder with just about 10%, sold its stake in January 2016 (SEC Form 13G dated 8th of February 2016). Based on today’s numbers and thinking the sizeable short position, Stratasys share price is well placed to show a sturdy recoquite in 2016, back to the 30’s level.

Samuel Adams

About The Author

Samuel is passionate by value driven investment strategies on stocks and financial markets