AM Industry market leader Stratasys reported yet another weak quarter, with Q1 2018/2019 revenues decreasing by 6% to $153.8 million compared to $163.2 million recorded in the same period last year. The company continues to sell a large number of industrial grade systems, however, the increased competition from other large players such as HP and GE, as well as new entries such as Carbon and increasing competition from low-cost system manufacturers is continuing to take a toll on the company’s top and bottom lines.
Nevertheless, Stratasys has been making significant investments to relaunch its business, with several of these expected to bear fuit in the upcoming three to five year period. Stratasys is a primary investor in Desktop Metal, it has recently announced new production grade technologies, as well as new materials and systems, for its FDM and PolyJet hardware offer.
First Quarter GAAP net loss amounted to $13.0 million, or ($0.24) per diluted share, and non-GAAP net income amounted to $2.7 million, or $0.05 per diluted share. The company generated $27.1 million of cash from operations during the quarter.
“We are disappointed with our revenue for the first quarter, which is primarily attributed to underperformance in North America related to high-end system orders, specifically from customers in government and other key verticals such as aerospace and automotive,” said Ilan Levin, Chief Executive Officer of Stratasys. “We do not believe that our first quarter revenue represents a fundamental change in the demand environment in the North American market. We continue to maintain a strong pipeline of opportunities and are not modifying the full year guidance we issued earlier this year. Despite our revenue results in the period, we continued our positive trend of operational discipline and cash generation. We remain committed to our investments in long-term initiatives that include advancements in our core FDM and PolyJet technologies, new metal additive manufacturing platform, advanced composite materials, and software and application development.”
New Product Announcements
At the RAPID + TCT 3D Printing and Additive Manufacturing Conference, the Company showcased multiple product announcements reaffirming leadership in prototyping and manufacturing. These included enhancements to the PolyJet portfolio with an upgraded version of the multi-material, full-color J750 3D printing platform that adds increased reliability via hardware and software enhancements, as well as the new J735 3D printer with a smaller build size. New Vivid Colors for GrabCAD Print on the J750 and J735, featuring over 500,000 color combinations, highly accurate color matching, and advanced clear materials with texture functionality.
GrabCAD Print support was also expanded to include the Connex3 line of multi-material 3D printers.
“We are disappointed with our revenue for the first quarter, which is primarily attributed to underperformance in North America related to high-end system orders, specifically from customers in government and other key verticals such as aerospace and automotive”
Ilan Levin, Chief Executive Officer, Stratasys
Materials offerings now include the Antero 800NA, a PEKK-based thermoplastic that allows aerospace and other high-performance vehicle makers to produce high-temperature, chemical-exposed parts. New hardware offering includes the F900 Production 3D Printer with manufacturing-focused upgrades such as support for Carbon Fiber Filled Nylon 12, as well as the specialized F900 Aircraft Interiors Certification Solution (AICS), and the F900 Pro edition that extends the high repeatability developed for AICS to all industries. The specialized F380 Production 3D Printer, dedicated to Carbon Fiber Filled Nylon 12, provided users with the high strength and stiffness of Stratasys FDM Nylon 12CF on a proven platform with soluble supporting material, consistent quality, yield, and throughput of an industrial solution at a competitive price point.
The company also presented its ability to 3D print “green state” parts with standard metal powders, beginning with aluminum, that are post-processed via industry standard powder metallurgy processes and workflows.
Part properties achievable with the technology include final parts with density and isotropy that is significantly higher than existing additive solutions, and near identical chemical composition compared to parts created by conventional methods. The solution has been optimized for production rather than prototyping, making it highly efficient and commercially viable for a wide range of applications. Furthermore, for the first time, Stratasys showcased end-use production parts produced on the new metal platform.
“We are encouraged by the growing number of companies that are making significant progress in pursuing certifications for specific high-value applications,” continued Levin. “Our recent collaborations deepen these efforts as our customers move towards production applications, designing and manufacturing with confidence.”
Stratasys today reiterated the following information regarding the company’s guidance for projected revenue and net income for the fiscal year ending December 31, 2018. The revenue guidance for the full year is $670 to $700 million, with GAAP net loss of $41 to $25 million, or ($0.75) to ($0.46) per diluted share and Non-GAAP net income of $16 to $27 million, or $0.30 to $0.50 per diluted share.