Stratasys Reports Record Fourth Quarter And Fiscal Year 2013 Financial Results

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:
  • GAAP revenue for the fourth quarter of 2013 was $155.1 million. Non-GAAP revenue of $155.8 million for the fourth quarter of 2013 represents a 61.6% increase over the $96.4 million combined non-GAAP pro forma revenue (giving effect to the Stratasys-Objet merger as though it had closed on January 1, 2012) for the same period last year.
  • GAAP net loss for the fourth quarter was $2.0 million, or ($0.04) per basic share, compared to a pro forma loss of $3.5 million, or ($0.09) per basic share, for the same period last year.
  • Non-GAAP net income was $25.8 million for the fourth quarter, or $0.50 per diluted share, compared to pro forma non-GAAP net income of $16.3 million, or $0.40 per diluted share, reported for the same period last year.
  • Fourth quarter per share calculations were impacted by the public issuance of approximately 5.2 million new ordinary shares in September which raised approximately $463 million; and the approximately 3.9 million new ordinary shares issued in consideration for the acquisition of MakerBot.
  • The company invested a net amount of $15.5 million in R&D projects (non-GAAP basis) during the fourth quarter, representing 9.9% of net sales.
  • The company generated $15.6 million in cash from operations during the fourth quarter, and finished the year with $616.1 million in cash, investments and bank deposits, amounting to $12.50 per share.
  • EBITDA for the fourth quarter amounted to $36.0 million.
  • Backlog at the end of 2013 amounted to $28.0 million, versus $28.6 million at the end of 2012.
  • The company sold 10,963 3D printing and additive manufacturing systems during the quarter, and on a combined pro forma basis, a cumulative 75,818 systems worldwide as of December 31, 2013.

“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.”

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