Stratasys Inc. ( SSYS ) reported
first-quarter 2013 earnings per share of 38 cents, beating the
Zacks Consensus Estimate of a loss of 16 cents.
Stratasys recorded total revenue of $97.2 million in the first
quarter, up 116.5% from $44.9 million in the year-ago quarter. The
company witnessed improvements in the revenues of both Products and
In the reported quarter, Product revenues grew significantly by
117.9% from the year-ago quarter. The upside was driven by the
improvement in sales across segments. Apart from this, Services
revenues increased by 107.6% in the first quarter of 2013,
attributable to an increase in the revenues from maintenance
contracts and service, reflecting the company's growing base of
Gross profit stood at $37.4 million (38.5% of the total revenue)
in the quarter, up 62.8% from $22.9 million (51.0% of the total
revenue) in the year-ago quarter. Although the total gross profit
increased, the gross margin declined as revenues increased at a
lower rate than the cost of sales.
Operating loss in the quarter was $16.7 million versus a profit
of $7.3 million in the first quarter of 2012. However, operating
expenses increased 244.1% year over year, primarily due to higher
research and development (R&D) and selling, general and
administrative (SG&A) expenses.
Operating loss margin was 17.2% from operating profit margin of
16.1% in the year-ago quarter. The substantial increase in
operating expenses resulted in an operating loss.
The company reported net loss of $15.5 million or 40 cents per
share in the first quarter compared to a profit of $4.52 million or
21 cents per share in the prior-year quarter. Non-GAAP net income
was $15.6 million or 38 cents per share in the reported quarter
compared to a profit of $10.7 billion or 27 cents per share in the
The company exited the quarter with cash and cash equivalents of
$65.5 million, down from $133.8 million in the previous quarter.
Inventories for the quarter stood at $66.4 million, down from $67.9
million reported in the previous quarter. The company does not have
any long-term debt.
The company provided its guidance for fiscal 2013, wherein,
revenues are expected in the range of $430.0 million to $445.0
million, while the Non-GAAP earnings are anticipated to be $1.80 to
$1.95 per share.
The first-quarter results were encouraging with EPS exceeding
the Zacks Consensus Estimate and revenues improving on a
year-over-year basis. Moreover, the company reported substantial
growth in Product and Services revenues helped the company expand
its business volume.
Previously, the company had stated that
Hewlett-Packard ( HPQ ) agreed to
discontinue its manufacturing and distribution agreement for 3D
printers. The discontinuation has benefited the company, as it
helped Stratasys to become a dominant player in this market.
Despite a globally increasing demand for 3D printers, Stratasys
does not expect the termination to have a material impact on the
business fundamentals. However, we are a little apprehensive as the
company is unable to control its operating expenses and cost of
sales. Moreover, it is facing stiff competition from big and small
players like 3D Systems Corp. ( DDD ).
The company carries a Zacks Rank #3 (Hold). Electronic
For Imaging Inc. ( EFII ), carrying a
Zacks Rank #1 (Strong Buy), might be worth considering at this
point.3D SYSTEMS CORP (DDD): Free Stock Analysis
ReportELECTRN IMAGING (EFII): Free Stock Analysis
ReportHEWLETT PACKARD (HPQ): Free Stock Analysis
ReportSTRATASYS LTD (SSYS): Free Stock Analysis
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