FORTUS 900mc
Stratasys received an order for numerous Fortus 3D production systems in Q2.Stratasys (NASDAQ: SSYS) has announced that its second-quarter financial results have impressed yet again.
The company, which is headquartered in Minneapolis, US, and Rehovot, Israel, revealed record figures, with a non-GAAP revenue of $106.7 million (£68.8 million) for the three-month period, representing a 20 per cent organic rise over the $88.7 million pro forma revenue recorded for the same timeframe in 2012 after giving effect to the merger with Objet as though it closed on January 1st 2011.
Stratasys invested a net amount of $10.3 million in research and development over the three-month period, representing nearly 10 per cent of sales and on a combined basis, the company has shipped a cumulative 32,245 systems worldwide as of June 30th 2013. The 3D printing giant also said that it received a multi-million-dollar order that will be shipped in second half of 2013 from a leading Fortune 400 company for the purchase of numerous Fortus 3D production systems to be used for functional prototyping.
Naturally, the announcement of a merger agreement with MakerBot was considered the top highlight for the second quarter, while the company also stated that completing the critical sales, marketing and service team integration initiatives from the Stratasys/Objet merger was a noteworthy milestone.
Stratasys also noted it observed significant cross-selling opportunities develop within the company's newly-combined channel, with opportunities anticipated to build in the quarters to come.
GAAP revenue for the April-June period was $106.5 million, with GAAP net income coming in at a loss of $2.8 million versus a pro forma loss of $6.9 million compared to 2012.
Non-GAAP net income for 2013's Q2 was recorded at $18.6 million, representing a rise of nearly one-third (32 per cent) over pro forma non-GAAP income of $14.1 million in 2012.
CEO of Stratasys and TCT Show + Personalize keynote speaker David Reis commented: "We sustained positive momentum in the second quarter as global demand for our products and services remained strong. 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 materialise. 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. 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."
He added: "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."
Looking to the future, Stratasys stated the MakerBot merger is expected to accelerate Stratasys' growth rate and be marginally dilutive to non-GAAP earnings per share this year and therefore it has updated its financial guidance for the financial year. Revenue guidance has been raised to $455 million to $480 million from $430 million to $445 million, while non-GAAP earnings guidance is now $1.75 to $1.90 per diluted share.
Moreover, organic revenue growth is expected to perform more strongly towards the year end.
"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 closed lower on the NASDAQ in New York last night, sliding by 0.99 per cent to $86.16 per unit.
