Stratasys stock (NASDAQ:SSYS) is on the move today following its just reported earnings. In this column we will briefly hit the highlights of the earnings report, and then list the key developments that occurred in the quarter for this growing company. First, the earnings:

  • Revenue for the third quarter of 2017 was $155.9 million, compared to $157.2 million for the same period last year.
  • GAAP gross margin was 48.3% for the quarter, compared to a GAAP gross margin of 46.9% for the same period last year.
  • Non-GAAP gross margin was 52.5% for the quarter, compared to 54.0% for the same period last year.
  • GAAP operating loss for the quarter was $6.9 million, compared to a loss of $19.4 million for the same period last year.
  • Non-GAAP operating income for the quarter was $8.1 million, compared to $3.3 million for the same period last year.
  • GAAP net loss for the quarter was $10.2 million, or ($0.19) per diluted share, compared to a loss of $20.8 million, or ($0.40) per diluted share, for the same period last year.
  • Non-GAAP net income for the quarter was $4.1 million, or $0.08 per diluted share, compared to Non-GAAP net income of $0.1 million, or $0.00 per diluted share, reported for the same period last year.
  • The Company generated $4.6 million in cash from operations during the third quarter and ended the period with $302.8 million in cash and cash equivalents.

 

Now that you have a sense of the financials that are driving Stratsys stock, let us discuss the product achievements and developments that are helping to drive Stratasys stock as well.

The H2000 Large Part FDM 3D Production System was unveiled at IMTS 2016 as the Stratasys Infinite Build 3D Demonstrator, is transitioning into the commercializing phase. The system is designed for large parts made of engineering-grade thermoplastics, including aircraft interior panels, hybrid structures, composite tooling, and large prototypes. Following the successful early installations with our development partners, The Boeing Company and The Ford Motor Company, we recently completed a commercial delivery of an additional H2000 with a new customer.

The F123 Series, launched in February 2017, continued to generate very positive traction in the marketplace in the third quarter, as customers increasingly adopt a workgroup oriented approach to design and rapid prototyping that requires a combination of ease-of-use, precision, repeatability, affordability, and material options.

GrabCAD Print continues to show strong usage and adoption within our installed base, and has been installed by nearly 18,000 users to date. The software solution has been used to print over 116,000 trays of parts since launch of the product in November 2016, as it increasingly has become available across the Company’s installed base of 3D printing systems.

Announced launch of GrabCAD Voxel Print, a new software solution for the J750 3D printing platform that is designed to take PolyJet’s unique full color, multi-material capabilities and add true voxel level control during the design and 3D printing process. The new solution provides users an unprecedented level of material control to facilitate the creation of advanced structures, digital materials, gradient color patterns, internal properties, and textures for applications that include Academic Research, Product Design, Biomedical, Art, Design and Animation.

Announced availability of MakerBot Labs, an experimental platform for engineers and developers that gives advanced users the freedom and ability to experiment with new, innovative materials and software settings to develop new capabilities and applications while using MakerBot desktop 3D printing systems. The platform includes the MakerBot Experimental Extruder with interchangeable nozzles and access to custom print modes for experimenting with more advanced materials, the MakerBot Labs Community on Thingiverse, and access to MakerBot APIs for optimization and customization of MakerBot hardware.

Looking ahead for Stratasys stock, the company boosted guidance, which is a major positive. For the year 2017, the company revised its guidance as follows:

  • Revenue guidance of $655 to $670 million, compared to previous guidance of $645 to $680 million.
  • GAAP net loss of $39 to $31 million, or ($0.73) to ($0.59) per diluted share, compared to previous guidance of GAAP net loss of $53 to $39 million, or ($1.00) to ($0.73) per diluted share.
  • Non-GAAP net income in the range of $22 to $26 million, or $0.40 to $0.48 per diluted share, compared to previous guidance of non-GAAP net income in the range of $10 to $20 million, or $0.19 to $0.37 per diluted share.
  • Non-GAAP operating margin guidance of 5% to 6%, compared to previous guidance of non-GAAP operating margin of 3% to 5%.
  • Capital expenditures guidance of $20 to $30 million.

Quad 7 Capital rates Stratasys stock a buy.

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