Stratasys Reports Record Financial Results for the Second Quarter of 2013 and Updates 2013 Revenue and EPS Guidance
Company reports a second quarter GAAP loss of ($0.07) per share
·Non-GAAP revenue of $106.7 million for the second quarter of 2013 represents a 20% organic increase over the $88.7 million pro forma revenue recorded for the same period last year after giving effect to the Stratasys-Objet merger as though it closed on January 1, 2011.
·GAAP revenue for the second quarter was $106.5 million.
·Non-GAAP net income of $18.6 million for the second quarter, or $0.45 per diluted share, represents a 32% increase over pro forma non-GAAP net income of $14.1 million, or $0.35 per diluted share, reported for the same period last year.
·GAAP net income for the second quarter was a loss of $2.8 million, or ($0.07) per share, versus a pro forma loss of $6.9 million, or ($0.19) per share, for the same period last year.
·Non-GAAP gross margins improved to 59.2% for the second quarter from pro forma non-GAAP gross margins of 57.5% in the same period last year.
·GAAP gross margins improved to 47.3% for the second quarter from pro forma gross margins of 45.3% in the same period last year.
·The company invested a net amount of $10.3 million in R&D during the second quarter, representing 9.7% of sales.
·On a combined basis, the company has shipped a cumulative 32,245 systems worldwide as of June 30, 2013.
“We sustained positive momentum in the second quarter as global demand for our products and services remained strong,” said David Reis, chief executive officer of Stratasys. “Our growth in the second quarter accelerated compared to the first quarter, as the benefits of our recent channel integration and cross-selling initiatives have begun to materialize. This occurred while we continued to invest significantly in other merger integration initiatives. In addition, our margins were favorably impacted by the operating synergies produced by the Stratasys-Objet merger, and the strong sales of our higher-margin products and services. We are very pleased with our record second quarter results.
Q2 Business Highlights:
·Announced the signing of a merger agreement with MakerBot, a leading manufacturer of systems and ecosystem developer within the rapidly growing desktop 3D printing segment.
·Completed the critical sales, marketing and service team integration initiatives that resulted from the merger of Stratasys and Objet.
·Observed significant cross-selling opportunities develop within the company’s recently-combined channel, with opportunities expected to build over the coming quarters.
·Received a multi-million-dollar order that will be shipped in the second half of 2013 from a leading Fortune 500 company for the purchase of multiple Fortus 3D production systems to be used for functional prototyping, and the manufacture of tools and end-use products.
“With our critical Stratasys-Objet merger-integration activities nearly complete, we can now focus more intently on leveraging our combined sales and marketing organization to drive faster growth,” continued Reis. “Manufacturing applications remain one of the critical drivers of this growth, which was highlighted by the sizable order we received from a leading manufacturer for Fortus systems during the quarter. In addition, we are excited about our announced plan to merge with MakerBot, which we believe will accelerate our growth within the rapidly expanding segment for desktop 3D printers.”
Financial Guidance
As previously communicated, the merger with MakerBot is expected to accelerate Stratasys’ growth rate and be slightly dilutive to Non-GAAP earnings per share in 2013 and accretive to Stratasys Non-GAAP earnings per share by the end of 2014. Stratasys updated its following financial guidance for the fiscal year ending December 31, 2013 to take into consideration the pending merger with MakerBot, with the assumption this merger is completed by mid-August:
·Revenue guidance of $455 million to $480 million; versus previous guidance of $430 million to $445 million.
·Non-GAAP earnings guidance of $1.75 to $1.90 per diluted share; versus previous guidance of $1.80 to $1.95 per diluted share.
·GAAP earnings guidance of a ($0.76) to ($0.49) per share loss; versus previous guidance of a ($0.41) to ($0.16) per share loss.
Non-GAAP earnings guidance excludes $65.2 million of projected amortization of intangible assets; $21.0 million to $23.6 million of share-based compensation expense; and $16.3 million to $18.9 million in merger-related expenses.
Organic revenue growth is expected to be relatively stronger toward the end of this year as the company progresses with its Stratasys-Objet integration plan and realizes revenue synergies from selling the combined product portfolio.
Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of this press release. The table provides itemized detail of the non-GAAP financial measures.
“We begin the third quarter with positive sales momentum and a strong pipeline of opportunities within the channel. The benefits from our recent integration initiatives are tangible, and we are very excited about our plan to merge with Makerbot, which we expect to close in the middle of this month. Although we are pleased with our near-term performance and continue to project strong growth for the year, we also remain focused on developing the many opportunities that can drive long-term growth for our shareholders,” Reis concluded.
Stratasys Ltd. Q2-2013 Conference Call Details
Stratasys will hold a conference call to discuss its second quarter financial results on Thursday, August 8, 2013 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys Web site at www.stratasys.com under the “Investors” tab; or directly at the following web address: http://edge.media-server.com/m/p/g4fsvrbx/lan/en.
To participate by telephone, the domestic dial-in number is 866-271-6130 and the international dial-in is 617-213-8894. The access code is 72015855. 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 Web site or by accessing the provided web address.
(Financial tables follow)
Cautionary Statement Regarding Forward-Looking Statements
Certain information included or incorporated by reference in this press may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are often characterized by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,” “project” or other similar words, but are not the only way these statements are identified. These forward-looking statements may include, but are not limited to, statements relating to the company’s objectives, plans and strategies, statements that contain projections of results of operations or of financial condition (including, with respect to the planned MakerBot merger) and all statements (other than statements of historical facts) that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the company’s ability to efficiently and successfully integrate the operations of Stratasys, Inc. and Objet Ltd. after their merger as well as the ability to complete the MakerBot merger and to successfully put in place and execute an effective post-merger integration plan; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; litigation and regulatory proceedings; and those factors referred to under “Risk Factors”, “Information on the Company”, “Operating and Financial Review and Prospects”, and generally in the company’s annual report on Form 20-F for the year ended December 31, 2012 filed with the U.S. Securities and Exchange Commission and in other reports that the Company has filed with the SEC. Readers are urged to carefully review and consider the various disclosures made in the company’s SEC reports, which are designed to advise interested parties of the risks and factors that may affect its business, financial condition, results of operations and prospects. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
The information discussed within this release includes financial results and projections that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that exclude certain charges, expenses and income. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company’s core business operations and to compare the company’s performance with prior periods. The non-GAAP financial measures primarily identify and exclude certain discrete items, such as merger-related expenses, amortization expenses and expenses associated with share-based compensation required under ASC 718. The company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods.
This release is available on the Stratasys web site at www.stratasys.com
Sobre a Stratasys Ltd.
Stratasys Ltd. (Nasdaq: SSYS) é a entidade jurídica formada em 2012 pela fusão das empresas de impressão 3D Stratasys Inc. e Objet Ltd., baseadas respectivamente em Mineápolis, EUA e Rehovot, Israel. A empresa fabrica impressoras 3D e materiais para prototipagem e produção. Seus processos patenteados FDM® e PolyJet® produzem protótipos ou objetos fabricados diretamente de arquivos de CAD 3D ou de outros conteúdos 3D. Entre os sistemas incluem-se impressoras desktop 3D acessíveis para desenvolvimento de ideias, uma série de sistemas para prototipagem e grandes sistemas de produção para manufatura digital direta. A empresa conta, desde junho de 2012, com mais de 130 materiais de impressão 3D, o que constitui a mais ampla gama da indústria. Esta oferta inclui 120 materiais proprietários de fotopolímeros baseados em jato de tinta e 10 materiais termoplásticos proprietários baseados em FDM. A Stratasys também fabrica impressoras Solidscape 3D e opera o serviço de manufatura digital RedEye On Demand. A empresa conta com mais de 1.100 funcionários, possui mais de 500 patentes concedidas ou pendentes de manufatura aditiva no mundo inteiro e já ganhou mais de 20 prêmios por sua tecnologia e liderança. Está online nos endereços: www.stratasys.com ou http://blog.stratasys.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements regarding Stratasys’ beliefs, intentions and expectations, including statements regarding the management of Stratasys, Inc. and Objet Ltd. as a combined company, the benefits of the combination of the companies, and the future financial performance of the combined company after their merger, are forward-looking statements. The statements involve risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those projected. Actual results may differ materially due to a number of factors, including the risk and uncertainty that the businesses of the two companies may not be integrated successfully; the risk that the merger may involve unexpected costs or unexpected liabilities; the risk that synergies from the merger may not be fully realized or may take longer to realize than expected; the risk that management’s focus on and disruptions arising from the merger make it more difficult to maintain relationships with customers, employees, or suppliers. Stratasys’ ability to achieve the results presented in any forward-looking statement will depend on numerous factors, including its ability to penetrate the 3D printing market; its ability to achieve the growth rates experienced in preceding quarters; its ability to introduce, produce and market both existing and new consumable materials, and the market acceptance of these materials; the impact of competitive products and pricing; its timely development of new products and materials and market acceptance of those products and materials; the success of Stratasys’ recent R&D initiative to expand the DDM capabilities of its core FDM technology; and the success of Stratasys’ RedEyeOn DemandTM and other paid parts services. These and other applicable factors are discussed in this presentation and in Stratasys’ filings with the Securities and Exchange Commission. These filings include the definitive proxy statement/prospectus filed with the SEC on August 8, 2012, as well as the filings that Stratasys, Inc. has made with the SEC and that Stratasys Ltd. has made and will make with the SEC in the future, including its report on Form 20-F to be filed for the year ended 12/31/2012. Any forward-looking statements included in this presentation are as of the date they are given, and Stratasys does not intend to update them if its views later change, except as may be required by law. These forward-looking statements should not be relied upon as representing Stratasys’ views as of any date subsequent to the date they are given.
Stratasys Media Contacts
USA
Kristen Pittenger
WeberShandwick
Tel. +1- 952-346-6148
Email. kpittenger@webershandwick.com
Europe
Claire Russell-Jones
UK Bespoke
Tel: +44-1737-215200
E-mail. stratasys@bespoke.co.uk
Stratasys
Arita Mattsoff / Joe Hiemenz
Stratasys
Tel. +972-(0)74-745-4000 (IL)
Tel. +1-952-906-2726 (US)
Email. arita@stratasys.com
Email. joe.hiemenz@stratasys.com
Korea
Jihyun Lee
The Hoffman Agency Korea
Tel. +82-10-3408-1609
Email. jhlee@hoffman.com
Japan
Objet Japan
Aya Yoshizawa
Tel. +81 90 6473 1812
Aya.yoshizawa@stratasys.com
Asia Pacific
Objet AP Ltd
Vicki Kei
Tel. +852 3844 8813
Vicki.kei@stratasys.com
Brazil
Tatiana Fonseca
GAD Communications
Tel: +55-11-3846-9981
Email: tatiana@gadcom.com.br
Mexico
Patricia Tawil
IDESA
Tel. +52-55-5253-9670
Email. ptawil@idesap.com
South Africa
Alison McDonald
PR Connections
Tel. +27-(0)11-468-1192
Email. alison@pr.co.za
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© 2013 Stratasys Ltd. Todos os direitos reservados. Stratasys, Stratasys logo, Objet, For a 3D World, Objet24, Objet30 Pro, Objet Studio, Quadra, QuadraTempo, FullCure, SHR, Eden, Eden250, Eden260, Eden260V, Eden 330, Eden350, Eden350V, Eden500V, Jo Manager, CADMatrix, Connex, Objet260 Connex, Connex350, Connex500, Alaris, Alaris30, PolyLog, TangoBlack, TangoGray, TangoPlus, TangoBlackPlus, VeroBlue, VeloBlack, VeroBlackPlus, VeroClear, VeroDent, VeroGray, VeroWhite, VeroWhitePlus, Durus, Digital Materials, PolyJet, Polyjet Matrix, ABS-like e ObjetGreen são marcas comerciais ou registradas da Stratasys Ltd. e/ou suas subsidiárias ou afiliadas e podem ser registradas em determinadas jurisdições. Todas as demais marcas comerciais pertencem aos seus respectivos proprietários.
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