3D printer co Stratasys jumps on strong results

The company today reported double-digit revenue and profit growth for 2012 and predicts further strong growth in 2013.

Stratasys Inc. (Nasdaq: SSYS) today reported double-digit revenue and profit growth for 2012 and predicts further strong growth in 2013. Israeli 3D printer maker Objet Ltd. merged with Stratasys in December 2012 and the new company is now headquartered in Rehovot. The share price jumped 7.2% at the opening to $68.87, giving a market cap of $1.5 billion, following the announcement.

Revenue rose 23% to $96.4 million for the fourth quarter from $78.3 million for the corresponding quarter of 2011. GAAP-based net loss narrowed to $3.5 million ($0.09 per share for the fourth quarter from $6.3 million for the corresponding quarter, and non-GAAP net profit rose 40% to $16.3 million ($0.40 per share) from $11.7 million.

Full-year revenue rose 30% to $359 million from $277 million in 2011. GAAP-based net loss narrowed to $21.6 million ($0.58 per share) in 2012 from $30.9 million in 2011, and non-GAAP net profit rose 60% to $59.6 million ($1.49 per share) from $37.2 million. The orders backlog totaled $28.6 million at the end of the year.

The company beat the analysts' consensus of $1.38 earnings per share on $200 million revenue for the year and consensus of $0.38 earnings per share on $52.8 million revenue for the fourth quarter.

Stratasys forecasts non-GAAP earnings per share of $1.80-1.95 on $430-445 million for 2013. The company expects growth to pick up during the second half of the year. The revenue guidance is above the analysts' consensus of $421 million, although the earnings per share guidance is in line with the consensus of $1.86.

Stratasys invested $33.3 million, 9.3% of revenue on R&D in 2012, resulting in the launch of several new products during the fourth quarter, and said that it would continue significant R&D investment in 2013 to develop proprietary technologies and new systems and materials.

"Our financial results reflect the strong demand for our products driven by the rapidly growing interest in additive manufacturing worldwide, as more companies are recognizing how our technology can reshape the way their products are designed and manufactured,” said Stratays CEO David Reis. “Our results and strong year-end backlog are made more impressive when you consider the significant amount of resources committed during the period to complete our game-changing merger, which included the initiation of an integration plan for our worldwide sales, marketing and service organization and their related support infrastructure. We are very pleased with our first financial results as a combined company."

The merger of Stratys and Objet created a global network of more than 260 resellers and independent sales agents.

Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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