- Revenue guidance of $700 to $730 million.
- GAAP net loss of $84.0 to $67.0 million, or ($1.60) to ($1.28) per diluted share.
- Non-GAAP net income of $9 to $23 million, or $0.17 to $0.43 per diluted share.
Stratasys provided the following additional information regarding the Company’s prospective performance and strategic plans for fiscal 2016:
- Gross margins in a range of 54% to 55%.
- Operating margins of 3% to 5%.
- Tax expense of $15 to $17 million, which includes the negative impact of the planned accounting treatment for tax valuation allowance.
- Capital expenditures are projected at $60 to $70 million, with approximately $45 million designated for completing the company’s new facility in Israel.
The Company is seeking an improvement in its operating structure in 2016 that will translate into improved operating profit compared to the prior year. Given the expected ongoing negative impact of not recording a tax benefit on U.S. tax losses on the Company non-GAAP net income, the Company believes that the rate of growth in its non-GAAP operating profit will be the best measure of performance.
“Over the past four years, since the merger of Stratasys and Objet, our company has undergone a major transformation, driven by initiatives that we believe are essential to our long-term success. Enhancing the value of additive manufacturing for our customers will require significant investments in time and other resources to fully develop. Operational efficiency and improved financial performance will remain a priority as we continue to execute our strategy. As CEO of Stratasys, I am excited about our future and I look forward to the challenge of building on our company’s legacy as the industry leader in additive manufacturing,” Levin concluded.
Non-GAAP earnings guidance excludes $59.0 million of projected amortization of intangible assets; $25.0 to $27.0 million of share-based compensation expense; $7.0 million in merger and acquisition related expense; $4.0 to $5.0 million in reorganization and other related costs; and includes $5.0 million in tax expenses related to non-GAAP adjustments.
Stratasys Ltd. Q2 2016 Conference Call Details
The Company will hold a conference call to discuss its second quarter financial results on Thursday, August 4, 2016 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys Web site at www.stratasys.com under the "Investors" tab; or directly at the following web address: http://edge.media-server.com/m/p/8j9rqe4g.
To participate by telephone, the domestic dial-in number is (855) 319-2216 and the international dial-in is (503) 343-6033. The access code is 45898366.
Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for 90 days on the "Investors" page of the Stratasys Web site or by accessing the provided web address.
For more than 25 years, Stratasys Ltd. (NASDAQ: SSYS) has been a defining force and dominant player in 3D printing and additive manufacturing – shaping the way things are made. Headquartered in Minneapolis, Minnesota and Rehovot, Israel, the company empowers customers across a broad range of vertical markets by enabling new paradigms for design and manufacturing. The company’s solutions provide customers with unmatched design freedom and manufacturing flexibility – reducing time-to-market and lowering development costs, while improving designs and communications. Stratasys subsidiaries include MakerBot and Solidscape, and the Stratasys ecosystem includes 3D printers for prototyping and production; a wide range of 3D printing materials; parts on-demand via Stratasys Direct Manufacturing; strategic consulting and professional services; and the Thingiverse and GrabCAD communities with over 2 million 3D printable files for free designs. With more than 2,500 employees and 800 granted or pending additive manufacturing patents, Stratasys has received more than 30 technology and leadership awards. Visit us online at: www.stratasys.com or http://blog.stratasys.com/, and follow us on LinkedIn.
Stratasys is a registered trademark of Stratasys Ltd. and/or its subsidiaries or affiliates.
Cautionary Statement Regarding Forward-Looking Statements
The statements in this press release regarding Stratasys' strategy, and
the statements regarding its projected future financial performance,
including under the heading “Financial Guidance,” are forward-looking
statements reflecting management's current expectations and beliefs.
These forward-looking statements are based on current information that
is, by its nature, subject to rapid and even abrupt change. Due to risks
and uncertainties associated with Stratasys' business, actual results
could differ materially from those projected or implied by these
forward-looking statements. These risks and uncertainties include, but
are not limited to: any failure to efficiently and successfully
integrate the operations of Stratasys, Inc. and Objet Ltd. after their
merger as well as MakerBot, Solid Concepts, Harvest and GrabCAD after
their acquisition or to successfully establish and execute effective
post-acquisition integration plans; changes in the overall global
economic environment; the impact of competition and new technologies;
changes in the general market, political and economic conditions in the
countries in which Stratasys operates; any underestimates in projected
capital expenditures and liquidity; changes in Stratasys’ strategy;
changes in applicable government regulations and approvals; changes in
customers’ budgeting priorities; lower than expected demand for
Stratasys’ products and services; reduction in Stratasys’ profitability
due to shifting in its product mix into lower margin products or
shifting in its revenues mix significantly towards its AM services
business; costs and potential liability relating to litigation and
regulatory proceedings; and those factors referred to in Item 3.D “Key
Information - Risk Factors”, Item 4, “Information on the Company”, and
Item 5, “Operating and Financial Review and Prospects” in Stratasys’
Annual Report for the year ended December 31, 2015, as well as in such
Annual Report generally. Readers are urged to carefully review and
consider the various disclosures made throughout (i) the Form 6-K
attaching Stratasys’ unaudited, condensed consolidated financial
statements as of, and for the quarter and six months ended, June 30,
2016, and its review of its results of operations and financial
condition for those periods, which has been furnished to the Securities
and Exchange Commission, or SEC, on or about the date hereof, (ii)
Stratasys’ 2015 Annual Report, and (iii) Stratasys’ other reports filed
with or furnished to the SEC, which are designed to advise interested
parties of the risks and factors that may affect its business, financial
condition, results of operations and prospects. Any guidance and other
forward-looking statements in this press release are made as of the date
hereof, and Stratasys undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.