Today, Stratasys (SSYS) released its financial results for the last quarter of 2015 and for the year 2015. After a string of difficult quarters in 2014 and 2015, the company looks like it managed to stabilize its operations. Revenues at $173M in the last quarter are in line with the company’s last forecast and show a 3% increase from Q3/15. More importantly, here are the highlights of today’s release:
- adjusted net income is just at breakeven,
- the net cash position has slightly increased to $258M. This is the first increase in many quarters,
- mid-range 2016 revenues expectation show a 3% growth from 2015 numbers,
- margin will remain high at 54-55%, and
- investment remains under control.
|Number of units shipped||24 363||4 629|
|Gross Margin (%)||52||48||54-55|
|EBIT – adjusted||-16||-9||25|
Stratasys refocused its business on its core activities in 2015, reduced its cost base with a decrease in headcount by 10% and cleaned its balance sheet. The positive cash generation in the last quarter is a very positive note. With investment expected under control in 2016, the company should regain confidence from investors after 2 very difficult years.
A clear and cohesive strategy for 2016
In a recent interview I had with Joshua Claman, the Chief Business Officer stated that Stratasys has managed to define a cohesive strategy all along the 3D printing value chain, from prototyping to end users 3D printed parts. Joshua insisted that the management team is very focused on growing the business based on the strong and clean foundation laid out in 2015. He clearly showed confidence in the capacity for Stratasys to innovate and grow in a competitive environment.
I stressed some weeks ago that Stratasys’ shareholder base has changed significantly in the last 6 months. Old guns have left, leaving space for activists. Baillie Gifford, the century old investment firm that was the largest shareholder with nearly 10%, sold its stake in January 2016 (SEC Form 13G dated 8th of February 2016). Based on today’s numbers and considering the large short position, Stratasys share price is well placed to show a strong recovery in 2016, back to the 30’s level.