Stratasys, Ltd. Trades Higher Despite Reporting Losses

The shares Stratasys were trading slightly higher despite posting quarterly losses. The stock price of the company rose more than 1% to $35.74 per share around 3:31 in the afternoon in New York.

Stratasys financial results

Stratasys reported a GAAP net loss of $216.3 million or $4.24 per share for the first quarter due to a $194 million goodwill impairment related to its MarketBot unit and other intangible asset impairment expenses.

During the same period last year, Stratasys recorded GAAP net income of $4.1 million or $0.08 per diluted share.

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According to the 3D-printing company its non-GAAP net income was $2 million of $0.04 per share in the first quarter compared with the $20.6 million or $40 per diluted share in the same period a year earlier.

Stratasys said its revenue was$172.7 million during the period. The company invested approximately $24.4 million in R&D projects, which accounts 14.1% of its revenue.

Revenue for the first quarter of 2015 was $172.7 million, which includes an approximate $7.8 million negative impact on revenue from the stronger U.S. dollar on a constant currency basis when compared to the same period last year.

Stratasys ended the quarter with approximately $25 million in cash, cash equivalents, and short-term bank deposits.

Stratasys continues to see long-term opportunity in 3D printing

During the quarter, Stratasys sold 7,536 3D printing and additive manufacturing systems. On a proforma combined basis, the company sold the total of 129,197 systems worldwide as of March 31, 2015.

Stratasys CEO David Reis said, “We continue to see significant long-term opportunity in the 3D printing and additive manufacturing market. We believe we are offering a transformative alternative to conventional manufacturing, design and engineering processes, and maintain an attractive pipeline of future opportunities.”

Reis added that Stratasys will remain focused on the future although its near-term operating and capital investment plans have been modified to align with softness in market conditions. According to him, they will continue to execute the company’s multiyear investment plan designed to drive accelerated adoption of 3D printing solutions and increased sales growth.

Stratasys business outlook

For the full-year 2015, Stratasys expected to achieve total revenue of around $800 to $860 million. The company estimated to generate non-GAAP net income in the range of $63 to $90 million or $1.20 to $1.70 per diluted share.

According to the company, its non-GAAP earnings guidance excludes an estimated $78 million amortization of intangible assets and around $35 million to $38 million of share-based compensation expense. It also excludes $28 million to $30 million in non-recurring expenses related to acquisitions; $197 to $199 million in goodwill and other intangible asset impairment and restructuring charges.

Stratasys estimated that its total operating expenses will account as much as 47% of its anticipated revenue this year.