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Stratasys report Q2 financial results, 3D printing industry, “maturing and evolving” – 3D Printing Industry

by • August 3, 2016 • No Comments

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This morning Stratasys Ltd. (NASDAQ: SSYS) reported their financial results for the 2nd quarter of 2016.
The quarter was the final reporting period for CEO, David Reis, who it was revealed previously may be stepping aside for Ilan Levin. Similar to Reis preceding him, Levin held leadership positions at Objet preceding Stratasys acquired the company in 2012. Reis can yet be involved with the company as an executive director.
Total ractuallyue for the quarter was $172.1 million with a net loss of $18.5 million or -$0.36 per share (-$0.44 Q1 2016). This is an increase of $4.2 million in ractuallyue compared to the first quarter of the year.
But, in year on year performance total ractuallyue minimized by $10 million of Q2 2015’s $182.3 million. The majority of this minimize was attributable to sales inside the product classification.
Stratasys produced $6.9 million of operations in the quarter, compared to $31.6 million in the previous quarter.
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With these results Stratasys did not meet pre-release analyst consensus expectations. These were for $176.71 million in ractuallyue. But on non-GAAP modified ractuallyue the company reported $0.12 EPS, double the expectation of analysts $0.06 EPS.
Opening at $22 the stock first dropped to $20.88 on the news. Trading at these prices the stock is above its 52 week low of $14.48, but yet a few way at a lower place the $33.13 high and the $136.46 peak of early 2014.
Stock prices for many 3D printing companies rallied yesterday after 3D Systems reported earnings for the 2nd quarter. At one point, the stock was revealing a daily acquire over 20%.
The company sold 5,125 3D printing and additive making systems during the first quarter; nowadays’s earnings call reported an increase of 269 in that number.
Given the tough macro-economic environment, expectations for nowadays’s earning call were low. The results released nowadays, while worthwhile, should be considered together with the company’s longer-term prospects. Speaking of the company’s performance Levin said, “Compared to the first quarter, we obassistd stronger margins and a worthwhile increase in non-GAAP operating profit. Our margins benefitted of a sales mix that loved our higher-end systems, that include the not long ago launched J750, the industry’s many high end full-color, multi-material 3D printing device, as well as our ongoing efforts to improve operations, and reduce operating expenses.”
Levin was keen to communicate a core part of strategy is, “Building value around high value applications.” The CEO created the point that FDM and Polyjet are great “applications for full solutions” and the company has a “long runway with these technologies,” in the core industries. These are, “aerospace, car, and medical, that can rely on these technologies to enhance their businesses.”
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A direct making service was not long ago added, “to accelerate the adoption of 3D printing by customers” but can, “not generate a worthwhile amount of ractuallyue,” pretty this can assist to bring in new customers said Levin.
Speaking of the GrabCAD community Lactually said, “GrabCAD Print is already on the market in free public beta in North America.” GrabCAD represents a, “worthwhile part of R&D expenditure” that the company believe is necessary to ensure the line is competitive in the market. But, Stratasys are not waiting for a sizeable amount of ractuallyue of this area, actually going into 2017.
Erez Simha, CFO & COO and Shane Glenn, VP of Investor Relations joined the new CEO on the call.
The quarter in addition saw Tim Bohling join as Chief Marketing Officer
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No alters in full year guidance
Full year ractuallyue guidance stayed unalterd of Q1’s noted range of $700 to $730 million. The company had previously revealed earnings expectation to be in the range of an $84 to $67 million loss for 2016, these in addition stay unalterd. Strategic plans are for a modest improvement in gross margins in the range of 54% to 55%, for this quarter GAAP gross margins were 46.2%. This is an increase of 0.7% on Q1, but the company require to improve margins by 7.8% in the upcoming 6 months if they are to hit the year-end target.
The company had previously revealed that $45 million of 2016’s $60 to $70 million capital expenditure may be utilized to conclude a new facility in Israel, there was no update to the spend on this project.
Whilst these results end the trend of consecutive minimizes in ractuallyue, year on year numbers tell a various story. Analysts such as Piper Jaffray’s Troy Jensen believe the slow down in ractuallyue at Stratasys and 3D Systems is for the reason, “Sat any timeal customers have and can most likely go on to pause purchasing to assess these new HP offerings.” Resellers may in addition decide to switch to HP products and when firm data on orders and performance of the HP MultiJet Fusion range arrives a period of share price volatility is most likely.
In mid July, analysts at stockbroker Piper Jaffray set a revised price target of $24 for Stratasys. This lower target was accompanied by a alter in recommendation of ‘overweight’ to ‘neutral’.
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Hints for the next
Investors appearing for hints of the next of Stratasys can be advised to appear outside the company. On demand contract manufacturers, Proto Labs were named by HP in May as part of group of users who can obtain early access to the MultiJet Fusion 3D printing devices.
Proto Labs own a range of 3D printing devices, that include Concept Laser and 3D Systems machines, in addition to CNC milling tools and injection molding equipment. As Proto Labs are not tied to any individual making technique their reaction may provide an early indication to the fortunes of Stratasys, 3D Systems and HP for 2017.
Takeover Target?
The 3D printing industry landscape is undergoing an actuallytful period of alter. The proclamations of multi-national giants such as Ricoh, HP and Canon are starting to bear fruit as these glacial giants start to enter the market. No longer content to act as resellers and with vast resources on the market, the mode of market entry stays to be seen. But, with an at any time increasingly crowded competitive field, acquisitions and exits become additional most likely. As 3D printing’s addressable market expands the attraction of a ready-created market leader may prove irresistible.
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