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Stratasys Reports Strong 4th Quarter Results and Fiscal 2012 Financial Results

Stratasys Ltd. has today announced its financial results for the fourth quarter and fiscal year 2012. Like 3D Systems’ report last week, there will be no attempt to analyse these figures here, only a report of the news from the company. For share analysis and stock valuations the experience of others at reputable (or not) sites will be much more insightful. However, this report is the first that illustrates the combined results for Stratasys, Inc. and Objet Ltd. following the completion of their merger.

From the Press Release:

Financial Results Summary (Pro Forma Combined Basis):

·    Revenue of $96.4 million for the fourth quarter of 2012 represents a 23% increase over the $78.3 million recorded for the same period last year.

·    Non-GAAP Net Income of $16.3 million for the fourth quarter, or $0.40 per share, represents a 40% increase over the $11.7 million, or $0.30 per share, reported for the same period last year.

·    GAAP Net Income for the fourth quarter was a loss of $3.5 million, or ($0.09) per share, versus a loss of $6.3 million, or ($0.17) per share, for the same period last year.

·    Revenue of $359.0 million for fiscal 2012 represents a 30% increase over the $277.0 million reported for same period last year.

·    Non-GAAP Net Income of $59.6 million for fiscal 2012, or $1.49 per share, represents a 60% increase over the $37.2 million, or $0.94 per share, recorded for the same period last year.

·    GAAP Net Income for fiscal 2012 was a loss of $21.6 million, or ($0.58) per share, versus a loss of $30.9 million, or ($0.84) per share, for the same period last year.

·    Non-GAAP Gross Margins improved to 58.0% from 56.5% in fiscal 2012, and improved to 57.8% from 56.9% in the fourth quarter over prior year periods.

·    GAAP Gross Margins improved to 45.7% from 40.8% in fiscal 2012, and improved to 46.1% from 42.9% in the fourth quarter over prior year periods.

·    The Company has shipped 29,816 systems worldwide as of December 31, 2012.

·    Fiscal 2012 year-end system backlog totaled $28.6 million.

“Our financial results reflect the strong demand for our products driven by the rapidly growing interest in additive manufacturing worldwide, as more companies are recognizing how our technology can reshape the way their products are designed and manufactured,” said David Reis, chief executive officer of Stratasys. “Our results and strong year-end backlog are made more impressive when you consider the significant amount of resources committed during the period to complete our game-changing merger, which included the initiation of an integration plan for our worldwide sales, marketing and service organization and their related support infrastructure. We are very pleased with our first financial results as a combined company.”

Following completion of the merger between Stratasys, Inc. and Objet Ltd., the Company benefits from a global network of more than 260 resellers and independent sales agents that sell Stratasys products and services worldwide.  In this connection, the Company has initiated a comprehensive integration plan, which includes a cross-training program to enable its reseller and sales agent network to market and sell the combined product and service portfolio.  The Company expects to conclude the cross-training process within 18 months, yielding a more capable reseller network.

The Company spent a net amount of $33.3 million, or 9.3% of its 2012 revenue, on research and development on a pro forma non-GAAP basis and $36.9 million, or 10.3% on a pro forma GAAP basis.  The Company’s ongoing combined R&D investments yielded a number of product introductions in the fourth quarter, including:

·    Launch of the Objet1000 – the world’s most effective large-format 3D printer for industrial scale prototypes.

·    Launch of the Scholar – an accessible and highly affordable PolyJet 3D printer package for academia.

·    Introduction of black colour ULTEM 9085 – a high-performance thermoplastic, for use in its FDM 3D printing process.

·    Introduction of new rigid black PolyJet material and 16 new rigid/rubber-like composites – bringing availability of PolyJet materials to more than 120.

In 2013, the Company will continue significant investment in its R&D efforts, focusing on further developing its proprietary technologies, enhancing its AM systems, and developing new systems and materials in order to broaden its product offerings.