) reported second-quarter 2013 earnings per share of 36 cents,
beating the Zacks Consensus Estimate of a loss of 5 cents.
ALPS ELECTRIC (APELY): Get Free Report
3D SYSTEMS CORP (DDD): Free Stock Analysis
ELECTRN IMAGING (EFII): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
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Stratasys recorded total revenue of $106.5 million, up 115.5%
from $49.4 million in the year-ago quarter. The company witnessed
improvements in the revenues of both Products and Services, which
resulted from higher product and services demand, and various
team integration and cross-selling activities.
In the reported quarter, Product revenues grew significantly by
117.7% from the year-ago quarter on higher systems sales and
demand for consumables. Apart from this, Services revenues
increased 104.4%, attributable to an increase in revenues from
maintenance contracts and services, reflecting the company's
growing base of installed systems.
Geographically, North America and Asia-Pacific played a vital
role, while Europe, Middle East and Africa continued to lag.
Gross profit stood at $50.4 million (47.3% of the total revenue)
in the quarter, up 92.7% from $26.2 million (52.9% of the total
revenue) in the year-ago quarter.
Operating loss in the quarter was $2.6 million versus a profit of
$5.8 million in the year-ago quarter. Operating expenses
increased 150.1% year over year, primarily due to higher research
and development (R&D) and selling, general and administrative
(SG&A) expenses. Operating loss margin was 2.4% compared to
operating profit margin of 11.7% in the year-ago quarter.
The company reported net loss of $2.8 million or 7 cents per
share compared to a profit of $3.0 million or 14 cents per share
in the prior-year quarter. Excluding one-time items but including
non-cash stock-based compensation expenses, adjusted earnings
were 36 cents per share.
The company exited the quarter with cash and cash equivalents of
$148.9 million, up from $65.5 million in the previous quarter.
Inventories for the quarter stood at $64.6 million, down from
$66.4 million reported in the previous quarter. The company does
not have any long-term debt.
Fiscal 2013 Guidance Revised
The company revised its fiscal 2013 guidance to reflect the
impact of the pending acquisition of desktop 3D printing company,
MakerBot (announced in Jun 2013).
The company provided its guidance for fiscal 2013, wherein
revenues are expected in the range of $455.0 million to $480.0
million (previously $430.0 million to $445.0 million), while the
non-GAAP earnings are anticipated to be $1.75 to $1.90 per share
(previously $1.80 to $1.95 per share). Moreover, GAAP loss is
expected in the range of 76 cents - 49 cents per share
(previously 41 cents - 16 cents per share).
MakerBot, though dilutive to fiscal 2013 earnings, will be
accretive to non-GAAP earnings per share in fiscal 2014, the
The second-quarter results were encouraging with adjusted
earnings per share exceeding the Zacks Consensus Estimate and
revenues improving on a year-over-year basis. Continuous
investments (acquisitions, integration activities and
cross-selling initiatives) led to higher operating expenses and
eventually to an operating loss.
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.
). But we are optimistic that the investments will continue to
pay off and support growth.
Stratasys carries a Zacks Rank #3 (Hold). Other stocks such as
Electronic For Imaging Inc.
Alps Electric Co. Ltd.
), both carrying a Zacks Rank #1 (Strong Buy), might be worth
considering at this point.