Stratasys Ltd. posted a $216 million loss for its first fiscal quarter.
3-D printing firm Stratasys posts $216 million loss for first quarter
Officials had warned last month about tough market conditions.
May 12, 2015 at 2:25AM
The 3-D printer manufacturer and service firm — as it had warned a month ago — said on Monday that an industrial slowdown, high U.S. dollar and MakerBot reboot proved big setbacks.
Stratasys officials said growth had slowed across all industrial segments and that the strong dollar also affected revenue. Profits were slammed by large restructuring costs for its consumer desktop 3-D printing division, MakerBot.
The company noted some successes during the quarter, such as a new parts-manufacturing contract with Airbus, an uptick in service revenue and increased sales of "consumable" resins and parts needed for its industrial and consumer 3-D printers.
Even so, Stratasys, which is based in Rehovot, Israel, with significant operations in Eden Prairie, posted a loss of $216.3 million, or $4.24 per share for the first quarter. In the first quarter a year ago, profits were $4.1 million, or 8 cents a share.
Excluding a $194 million impairment charge for its consumer-oriented MakerBot desktop 3-D printer subsidiary and other one-time items, adjusted earnings were a positive $2 million, or 4 cents a share.
On average, Wall Street analysts had expected 3 cents a share.
Revenue rose 14 percent to $172.7 million, up 14.4 percent from the same period a year ago and slightly exceeding the $172.6 million expected by analysts.
Stratasys said revenue would have been $7.8 million higher had it not been for currency translation woes tied to the high U.S. dollar.
Stratasys closed Monday at $35.54, up 21 cents.
In a conference call with analysts early Monday, CEO David Reis called the first-quarter slowdown "disappointing," but that the performance was a temporary blip.
"Although we have modified our near-term operating and capital investment plans to align with softness in market conditions, we will remain focused on the future and continue to execute on a multiyear investment plan designed to drive accelerated adoption of 3-D printing solutions and increased sales growth," he said.
For the year, Stratasys now expects full year 2015 sales of $800 million to $860 million, which is down significantly from the $940 million revenue guidance given as recently as March.
Stratasys now expects a loss for the year of $224 million to $256 million. The per-share loss estimate is $4.38 to $5 per share.
Excluding MakerBot's restructuring and other one-time costs, adjusted net income should reach a positive $63 million to $90 million in fiscal 2015, officials said, noting that the expected gains would come in the second half of the fiscal year.
MakerBot is being restructured. Significant problems emerged last year soon after Staples, Home Depot, Amazon and other big name retailers agreed to distribute the desktop printers that are geared toward schools, small offices and artists. While customers liked the idea of the reasonably priced 3-D printers, they soon complained of extruder problems (meaning, their designs were not being executed properly) and returned the printers in droves.
When asked by analysts, Reis insisted that the newly minted relationship with retailers will continue and that the MakerBot problems are being quickly fixed.
Dee DePass • 612-673-7725
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