Stratasys Inc. (Nasdaq: SSYS) CEO David Reis predicts that the 3D printer manufacturer will achieve 25% organic growth in 2014. However, the profit guidance is below the analysts' consensus, sending the share price down 4.6% in premarket trading to $124, giving a market cap of $6.3 billion.
Stratasys forecasts $660-680 million revenue in 2014, 35-45% more than its guidance of $470-490 million revenue for 2013. It also forecasts GAAP-based net profit of $10.5-19.9 million ($0.20-0.38 per share) and non-GAAP net profit of $113-119 million ($2.15-2.25 per share), below the analysts' consensus of $2.33. The difference between the GAAP and non-GAAP figures is a $64.8 million write-down on intangible assets, employee compensation, and acquisitions.
"There are two pieces of news here," Stratasys CFO and COO Israel Erez Simha told "Globes". "The integration of Stratasys and Objet, which began to yield results in late 2013 will continue to do so in 2014, because the merged company has a fuller product line. On top of this is MarkerBot, which was acquired in August 2013. It is growing rapidly and will be included in the results throughout 2014, in contrast to 2013."
Stratasys forecasts a sharp growth in operating costs in 2014, because of higher R&D and sales and marketing spending, but the operating profit margin will be unchanged compared with 2013. Net profits will be uneven during the year, trending higher in the second half with the launch of new products.
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2014
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