) reported earnings per share of 26 cents in the first quarter of
2012, beating the Zacks Consensus Estimate.
Stratasys reported total revenue of $45.0 million in the first
quarter of 2012, up 30.0% from $34.6 million in the year-ago
quarter. The company saw substantial revenue growth, with revenues
from the consumable segment expanding 30%. The company also
witnessed 61.0% year-over-year sales growth from the Fortus 3D
The company recorded a record jump in system shipments, which
stood at 822 units for the first quarter of 2012 compared with 567
units for the same period last year.
Segment wise, revenues from
came in at $37.5 million, up 33.6% from $28.10 million reported in
the year-ago quarter.
revenue jumped 14.4% to $7.4 million from $6.48 million in the
Gross profit stood at $23.0 million (51.0% of the total revenue)
in the quarter, up 25.8% from $18.3 million (52.8% of the total
revenue) in the year-ago quarter. Significant gross margin
improvement was due to efficient cost reduction measures.
Operating income in the quarter was $7.2 million versus $6.2
million in the first quarter of 2011. However, operating expense
increased 30.1% year over year, primarily due to higher R&D and
SG&A expenses. Operating margin of 34.9% remained flat on a
year-over-year basis. The company is offering higher-margin
products, which helped them to keep their margin intact.
The company reported net income of $4.5 million or 21 cents per
share in the first quarter compared with $5.0 million or 23 cents
per share in the prior-year quarter. Non-GAAP net income was $5.6
million or 26 cents per share in the reported quarter.
The company exited the quarter with cash and cash equivalents of
$24.4 million, up from $20.1 million in the previous quarter. The
company does not have any long-term debt.
For fiscal 2012, the company expects GAAP EPS to be in the range
of 97 cents to $1.13, while the non-GAAP EPS would be $1.29 to
The company reported impressive first quarter results with EPS
matching the Zacks Consensus Estimate and revenue improving on a
year-over-year basis. Moreover, the revenue growth in the
consumable segment helped revenue grow substantially. Additionally,
the company's new collaboration with technology-major
) is expected to drive growth going forward.
However, we are a bit apprehensive about the company's high-cost
business model and stiff competition from big and small players
3D Systems Corp.
). Although the latest acquisition of Objet may add some value to
its 3D systems business.
The company has a Zacks #1 Rank, which implies a short-term
Strong-Buy rating on the stock.
3D SYSTEMS CORP (DDD): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
STRATASYS INC (SSYS): Free Stock Analysis
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