Stratasys released its first quarter earnings report before opening bell this morning, posting adjusted net income of 1 cent per share or $600,000 on $167.9 million in sales, against Wall Street’s estimates of 4 cents per share in losses on $164.82 million in revenue. In last year’s first quarter, the 3D printer maker posted $2 million or 4 cents per share in non-GAAP net income on $172.73 million in revenue.

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Stratasys’ operational results improve

GAAP losses were 44 cents per share or $23.1 million, compared to last year’s GAAP losses of $4.24 per share or $216.3 million. Adjusted EBITDA was $12.6 million. Stratasys said product revenue fell from $126.7 million last year to $118.6 million this year, while services revenue rose from $46.1 million to $49.3 million.

Operating losses improved as well from $220.9 million last year to $21.1 million as the company moves toward GAAP profitability. It generated $31.6 million in cash from operations and has about $280.2 million in cash and cash equivalents. Research and development expenses were $22.8 million or 13.6% of sales. The company sold 5,125 3D printing and additive manufacturing systems during the first quarter. Stratasys’ installed base stood at 151,149 systems worldwide as of the end of March.

“Although the overall market environment remains challenging, we made significant progress in improving our operating efficiency during the first quarter, which is demonstrated by the favorable trends we observed in operating expenses and cash generation during the period,” Stratasys CEO David Reis said in a statement. “We believe the recent refinements to our operating structure will make us more productive and better position us for future growth.”

Stratasys issues financial guidance

Stratasys, Ltd. (NASDAQ:SSYS) management guided for sales of $700 million to $730 million for the full year and adjusted earnings of $9 million to $23 million or 17 cents to 43 cents per share. They expect to post a GAAP loss of $84 million to $67 million or $1.60 to $1.28 per share for the year. Wall Street’s consensus estimates for the full year are 30 cents per share in adjusted earnings and $713.31 million in sales.

Management also expects a modest improvement in gross margins to between 54% and 55% and operating margins of 3% to 5%.

Immediately following this morning’s print, shares of Stratasys surged by more than 7% to open at $23.55, but after the market opened, they pulled back slightly. The stock is up 5.89% at $22.30 per share as of this writing.