Stratasys Ltd. (NASDAQ:SSYS) today announced record financial results
for the fourth quarter and fiscal year 2013.
Driven by the realization of Stratasys-Objet merger synergies and the
rapidly expanding market for 3D printing and additive manufacturing
solutions, the company observed strong demand across all product lines
during the fourth quarter.
Hardware and consumable revenue in the fourth quarter, excluding the
revenue contribution made by MakerBot, grew by 38% and 33%,
respectively, over the pro forma results for the same quarter last year.
Total non-GAAP revenue (excluding MakerBot's contribution) increased by
36% for the fourth quarter over last year's pro forma revenue.
MakerBot made a significant contribution of $24.9 million to fourth
quarter revenue, as its highly affordable and functional desktop 3D
printers continued strong positive sales momentum within the rapidly
growing desktop category.
The company generated record non-GAAP profits in the fourth quarter, as
strong sales of higher margin products contributed to a non-GAAP gross
margin of 60.2% for the period compared to 57.8% for the pro forma
period last year; and non-GAAP operating margin grew to 20.2% compared
to 19.1% on a pro forma basis for the same period last year.
Q4-2013 Financial Results Summary:
"Our fourth quarter results reflect the ongoing realization of revenue
synergies from the Stratasys-Objet merger, as well as the rapidly
growing demand for additive manufacturing and 3D printing solutions we
are observing worldwide," said David Reis, chief executive officer of
Stratasys. "We experienced strong organic growth driven by demand across
multiple product lines, as well as an impressive contribution from
MakerBot. In addition, a favorable product mix benefited margins, and
helped contribute to our record profits. We are very pleased with our
fourth quarter and overall annual results."
"We believe Stratasys is well positioned within our rapidly growing
industry as we begin 2014," continued Reis. "We have positive momentum,
driven by the ongoing demand for our industry-leading products and
services. We are pleased with our many recent new product introductions
and channel initiatives, which we believe will greatly improve 3D
printing accessibility and drive expanded usage for our products. And
finally, we are excited about our many internal projects that we believe
will further our objective of market leadership and long-term growth, as
we continue to evaluate additional acquisition opportunities to
accelerate our growth."
Stratasys reiterated the following information regarding the company's
projected revenue and net income for the fiscal year ending December 31,
Stratasys provided the following additional information regarding the
company's performance and strategic plans for 2014:
Non-GAAP earnings guidance excludes $64.8 million of projected
amortization of intangible assets; $25.1 million to $28.2 million of
share-based compensation expense; and $8.8 million to $9.8 million in
non-recurring expenses related to acquisitions.
Appropriate reconciliations between GAAP and non-GAAP financial measures
are provided in a table at the end of this press release. The table
provides itemized detail of the non-GAAP financial measures.
Stratasys Ltd. Q4-2013 Conference Call Details
Stratasys will hold a conference call to discuss its fourth quarter and
2013 annual financial results on Monday, March 3, 2014 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the
Stratasys Web site at www.stratasys.com
under the "Investors" tab; or directly at the following web address: http://www.media-server.com/m/p/p4rrw67g.
To participate by telephone, the domestic dial-in number is 866-318-8617
and the international dial-in is 617-399-5136. The access code is
37260413. Investors are advised to dial into the call at least ten
minutes prior to the call to register.
The webcast will be available for 90 days on the "Investors" page of the
Stratasys web site or by accessing the provided web address.
(Financial tables follow)
Cautionary Statement Regarding Forward-Looking Statements
Certain information included or incorporated by reference in this press
may be deemed to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements are often characterized by the use
of forward-looking terminology such as "may," "will," "expect,"
"anticipate," "estimate," "continue," "believe," "should," "intend,"
"project" or other similar words, but are not the only way these
statements are identified. These forward-looking statements may include,
but are not limited to, statements relating to the company's objectives,
plans and strategies, statements that contain projections of results of
operations or of financial condition (including, with respect to the
MakerBot acquisition) and all statements (other than statements of
historical facts) that address activities, events or developments that
the company intends, expects, projects, believes or anticipates will or
may occur in the future. Forward-looking statements are not guarantees
of future performance and are subject to risks and uncertainties. The
company has based these forward-looking statements on assumptions and
assessments made by its management in light of their experience and
their perception of historical trends, current conditions, expected
future developments and other factors they believe to be appropriate.
Important factors that could cause actual results, developments and
business decisions to differ materially from those anticipated in these
forward-looking statements include, among other things: the company's
ability to efficiently and successfully integrate the operations of
Stratasys, Inc. and Objet Ltd. after their merger as well as MakerBot
after its acquisition and to successfully put in place and execute an
effective post-merger integration plans; the overall global economic
environment; the impact of competition and new technologies; general
market, political and economic conditions in the countries in which the
company operates; projected capital expenditures and liquidity; changes
in the company's strategy; government regulations and approvals; changes
in customers' budgeting priorities; litigation and regulatory
proceedings; and those factors referred to under "Risk Factors",
"Information on the Company", "Operating and Financial Review and
Prospects", and generally in the company's annual report on Form 20-F
for the year ended December 31, 2013 filed with the U.S. Securities and
Exchange Commission and in other reports that the company has filed with
the SEC. Readers are urged to carefully review and consider the various
disclosures made in the company's SEC reports, which are designed to
advise interested parties of the risks and factors that may affect its
business, financial condition, results of operations and prospects. Any
forward-looking statements in this press release are made as of the date
hereof, and the company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
The information discussed within this release includes financial results
and projections that are in accordance with accounting principles
generally accepted in the United States (GAAP). In addition, certain
non-GAAP financial measures have been provided excluding certain
charges, expenses and income. The non-GAAP measures should be read in
conjunction with the corresponding GAAP measures and should be
considered in addition to, and not as an alternative or substitute for,
the measures prepared in accordance with GAAP. The non-GAAP financial
measures are provided in an effort to provide information that investors
may deem relevant to evaluate results from the company's core business
operations and to compare the company's performance with prior periods.
The non-GAAP financial measures primarily identify and exclude certain
discrete items, such as merger-related expenses, amortization expenses
and expenses associated with share-based compensation required under ASC
718. The company uses these non-GAAP financial measures for evaluating
comparable financial performance against prior periods.
This release is available on the Stratasys web site at www.stratasys.com.
Stratasys Ltd. (Nasdaq:SSYS), headquartered in Minneapolis, Minn.
and Rehovot, Israel, manufactures 3D printers and materials for
prototyping and production. The company's patented FDM® and PolyJetTM 3D
Printing technologies produce prototypes and manufactured goods directly
from 3D CAD files or other 3D content. Systems include 3D printers for
idea development, prototyping and direct digital manufacturing.
Stratasys subsidiaries include MakerBot and Solidscape, and the company
operates the RedEye digital-manufacturing service. Stratasys has more
than 1800 employees, holds over 550 granted or pending additive
manufacturing patents globally, and has received more than 20 awards for
its technology and leadership. Online at: www.stratasys.com
Twelve Months Ended December 31,
Accounts receivable less allowance for doubtful accounts of $1,804
at December 31, 2013 and $654 at December 31, 2012
Net investment in sales-type leases, net for doubtful accounts of
$183 at December 31, 2013 and $301 at December 31, 2012
Amounts funded in respect of employees rights upon retirement
Ordinary shares, NIS 0.01 nominal value, authorized 180,000
shares; 49,211 and 38,372 shares issued and outstanding at
December 31, 2013 and 2012, respectively
The Company considers these non-GAAP measures to be indicative of
its core operating results and facilitates a comparison of
operating results across reporting periods. The Company uses these
non-GAAP measures when evaluating its financial results as well as
for internal planning and forecasting purposes, however these
measures should not be viewed as a substitute for the Company's
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