[November 05, 2014] |
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Stratasys Reports Record Third Quarter Financial Results
MINNEAPOLIS & REHOVOT, Israel --(Business Wire)--
Stratasys Ltd. (NASDAQ:SSYS) today announced record third quarter
financial results.
Total revenue for the third quarter of 2014 was $204 million, which
included a 35% increase organically when compared to the same period
last year and a 62% increase when including revenue from acquisitions.
Revenue from MakerBot branded products and services increased by over
80% when compared to the pro forma revenue that MakerBot generated
during the third quarter of 2013. MakerBot product and service revenue
is calculated as organic revenue beginning on August 15, 2014.
Non-GAAP net income for the third quarter increased by 50% over the same
period last year to $30.1 million, or $0.58 per diluted share. GAAP net
loss for the period was $31.3 million, or ($0.62) per basic share.
During the third quarter, Stratasys closed the acquisitions of Solid
Concepts and Harvest Technologies, creating a leading additive
manufacturing services platform that will support the company's
expansion into end-use-parts production, and the introduction of
applications within targeted vertical markets.
The company also announced and closed the acquisition of GrabCAD, a
leading cloud-based platform for 3D CAD users that provides tools to
facilitate 3D design collaboration, and has the potential to improve
access to the company's 3D printing products and services.
Additionally, Stratasys established MakerBot Europe by acquiring
MakerBot's German distributor, HAFNER'S BÜRO. MakerBot Europe will
manage existing resellers as well as expand the company's reach and
develop additional strategic partnerships in the European market.
The company adjusted its financial guidance for fiscal 2014 to account
for the recent acquisition of GrabCAD, with the expectation that ongoing
development costs, as previously disclosed, are expected to negatively
impact the fourth quarter by $0.03 to $0.05 per share. Non-GAAP net
income guidance was adjusted to $2.21 - $2.31 per diluted share; versus
previous guidance of $2.25 - $2.35 per diluted share.
Q3-2014 Financial Results Summary:
-
Revenue for the third quarter of 2014 was $203.6 million, representing
a 62% increase, and 35% on an organic basis, over non-GAAP revenue of
$126.1 million reported for the same period last year.
-
GAAP net loss for the third quarter was $31.3 million, or ($0.62) per
basic share, compared to a net loss of $6.6 million, or ($0.16) per
basic share, for the same period last year.
-
Non-GAAP net income was $30.1 million for the third quarter, or $0.58
per diluted share, compared to non-GAAP net income of $20.0 million,
or $0.45 per diluted share, for the same period last year.
-
Third quarter per share calculations relative to last year were
impacted by the issuance of approximately 5.2 million new ordinary
shares in the September 2013 public offering, which raised a net
amount of approximately $463 million; the approximate 3.9 million new
ordinary shares issued in consideration for the acquisition of
MakerBot in August of 2013; and the approximately 1.2 million shares
issued in consideration for the acquisitions of Solid Concepts and
Harvest Technologies in July and August of 2014, respectively.
-
Operating expenses expanded materially in the third quarter over last
year driven by the addition of expenses from Solid Concepts, Harvest
Technologies and MakerBot, as well as from significant incremental
investments to support new product initiatives and the company's
accelerating growth.
-
The company invested a net amount of $19.2 million in R&D projects
(non-GAAP basis) during the third quarter, representing 9.4% of
revenue; R&D expense was $23.4 million on a GAAP basis.
-
The company utilized $10.7 million in cash for operations during the
third quarter, driven primarily by one-time employee bonuses and
retention payments related to recent acquisitions; and currently holds
$459 million in cash and cash equivalents, and short-term bank
deposits, amounting to approximately $9 per share. The cash balance
includes a $50 million drawdown on the company's revolving debt
facility.
-
Non-GAAP EBITDA for the third quarter amounted to $40.0 million; and
EBITDA based on GAAP net income was ($22.2) million.
-
The company sold 10,965 3D printing and additive manufacturing systems
during the quarter, and on a combined pro forma basis, a cumulative
110,494 systems worldwide through September 30, 2014.
"Our organic revenue growth in the third quarter was an impressive 35%,
as demand for our industry-leading products and services remained very
strong," said David Reis, chief executive officer of Stratasys. "We
believe this trend validates our leadership position, supports our
strategic initiatives, and reflects favorably on the contributions made
by our recent acquisitions. As MakerBot sales continue to impress, sales
of our higher-margin products remained a key growth driver during the
third quarter, which had a positive impact on margins during the period.
Overall, we are very pleased with our third quarter results, as we
continued to recognize strong demand across a wide range of products and
applications."
Recent Business Highlights:
-
Completed the acquisitions of Solid Concepts and Harvest Technologies,
and began the integration process to create a leading strategic
platform to meet customers' additive manufacturing needs through an
expanded technology and parts services business offering.
-
Announced and completed the acquisition of GrabCAD, a provider of
cloud-based collaboration tools for designers and engineers to manage,
share and view CAD files. The addition of GrabCAD is expected to drive
improved communication and ease of use throughout the 3D printing
process, enhancing accessibility to the company's 3D printing
solutions.
-
Observed broad-based product demand, with particularly strong sales of
high-end FDM and PolyJet systems and materials, including strong
shipments of the Objet1000.
-
Introduced multiple new systems and materials, including two new
Fortus FDM systems as well as a significant expansion of our
successful Connex line of multi- material 3D printers.
-
Recognized strong demand for MakerBot branded desktop 3D printers, and
expanded the MakerBot sales channel through the inclusion of Home
Depot and the creation of MakerBot Europe.
-
Announced a significant expansion of the program to place uPrint 3D
printers in 100 UPS store locations across the U.S., following strong
demand for their in-store 3D printing services.
-
Significantly expanded the manufacturing capacity of the company's
PolyJet product line through the opening of a new facility in Kiryat
Gat, Israel.
-
Reached a significant milestone with over 100,000 cumulative systems
shipped on a combined company basis.
"We are excited about the potential of our recent acquisitions, and have
initiated the process of integrating Solid Concepts and Harvest
Technologies together with RedEye into a unified parts services
offering," continued Reis. "In addition, we believe the recent
acquisition of GrabCAD will ultimately position our company to provide
improved design collaboration tools, and greatly enhance customer
accessibility to our 3D printing products and services. We believe these
transactions demonstrate our commitment to invest strategically and
position the company for long-term growth."
Financial Guidance:
Stratasys provided the following information regarding the company's
projected revenue and net income for the fiscal year ending December 31,
2014:
-
Revenue guidance remains at $750 - $770 million.
-
Reflecting the recent acquisition of GrabCAD, non-GAAP net income
guidance was adjusted to $115 - $120 million, or $2.21 - $2.31 per
diluted share; versus previous guidance of $117 - $122 million, or
$2.25 - $2.35 per diluted share.
-
GAAP guidance was updated to a net loss of ($31.6) - ($24.4) million,
or ($0.63) - ($0.49) per basic share.
Non-GAAP earnings guidance excludes $80.6 million to $81.1 million of
projected amortization of intangible assets; $29.4 million to $29.9
million of share-based compensation expense; $14.6 million of impairment
charges; $66.7 million to $68.7 million in non-recurring expenses
related to acquisitions; and includes $46.9 million to $47.9 million in
tax expenses related to Non-GAAP adjustments.
Appropriate reconciliations between GAAP and non-GAAP financial measures
are provided in a table at the end of this press release. The table
provides itemized detail of the non-GAAP financial measures.
Stratasys reiterated the following information regarding the company's
long-term operating model:
-
Annual organic revenue growth of at least 25%.
-
Non-GAAP operating income as a percent of sales of 18% to 23%.
-
Non-GAAP effective tax rate of 10% to 15%.
-
Non-GAAP net income as a percent of sales of 16% to 21%.
"We continue to observe strong market demand, and we are excited about
our several new product launches. And finally, we have reiterated our
growth forecasts and look forward to a strong finish to 2014," concluded
Reis.
Stratasys provided the following additional information regarding the
company's performance and strategic plans for 2014:
-
Operating expenses will expand materially in 2014 compared to 2013,
driven by significant investments to support MakerBot product
development and sales expansion; other investments in sales and
marketing to drive future market adoption; and increased R&D
investments to fund technology innovation and new product development.
-
Operating expenses for the remainder of 2014 will also include
significant incremental investments to support the integration and
alignment of the recent acquisitions of Solid Concepts and Harvest
Technologies, as well as ongoing incremental expenses from the
addition of GrabCAD.
-
Capital expenditures are projected at $50 million to $60 million for
2014, and $160 million to $200 million for 2015, which includes
significant investments to support future growth.
Stratasys Ltd. Q3-2014 Conference Call Details
Stratasys will hold a conference call to discuss its third quarter
financial results on Wednesday, November 5, 2014 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://www.media-server.com/m/p/3my5yedw.
To participate by telephone, the domestic dial-in number is 866-515-2913
and the international dial-in is 617-399-5127. The access code is
50996956. 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.
Cautionary Statement Regarding Forward-Looking Statements
Certain information included or incorporated by reference in this press
may be deemed to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements are often characterized by the use
of forward-looking terminology such as "may," "will," "expect,"
"anticipate," "estimate," "continue," "believe," "should," "intend,"
"project" or other similar words, but are not the only way these
statements are identified. These forward-looking statements may include,
but are not limited to, statements relating to the company's objectives,
plans and strategies, statements that contain projections of results of
operations or of financial condition (including, with respect to
acquisitions) and all statements (other than statements of historical
facts) that address activities, events or developments that the company
intends, expects, projects, believes or anticipates will or may occur in
the future. Forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties. The company has
based these forward-looking statements on assumptions and assessments
made by its management in light of their experience and their perception
of historical trends, current conditions, expected future developments
and other factors they believe to be appropriate. Important factors that
could cause actual results, developments and business decisions to
differ materially from those anticipated in these forward-looking
statements include, among other things: the company's ability to
efficiently and successfully integrate the operations of Stratasys, Inc.
and Objet Ltd. after their merger as well as MakerBot, Solid Concepts,
Harvest Technologies, and GrabCAD after their acquisitions and to
successfully put in place and execute an effective post-merger
integration plans; the overall global economic environment; the impact
of competition and new technologies; general market, political and
economic conditions in the countries in which the company operates;
projected capital expenditures and liquidity; changes in the company's
strategy; government regulations and approvals; changes in customers'
budgeting priorities; litigation and regulatory proceedings; and those
factors referred to under "Risk Factors", "Information on the Company",
"Operating and Financial Review and Prospects", and generally in the
company's annual report on Form 20-F for the year ended December 31,
2013 filed with the U.S. Securities and Exchange Commission (the "SEC"),
in the "Risk Factors" attached as Exhibit 99.3 to the Report of Foreign
Private Issuer on Form 6-K furnished by the company to the SEC on the
date hereof, and in other reports that the company has furnished to or
filed with the SEC. Readers are urged to carefully review and consider
the various disclosures made in the company's SEC reports, 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 forward-looking statements in this press release are made
as of the date hereof, and the company 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.
Non-GAAP Discussion Disclosure
The information discussed within this release includes financial results
and projections that are in accordance with accounting principles
generally accepted in the United States of America (GAAP). In addition,
certain non-GAAP financial measures have been provided excluding certain
charges, expenses and income. The non-GAAP measures should be read in
conjunction with the corresponding GAAP measures and should be
considered in addition to, and not as an alternative or substitute for,
the measures prepared in accordance with GAAP. The non-GAAP financial
measures are included in an effort to provide information that investors
may deem relevant to evaluate results from the company's core business
operations and to compare the company's performance with prior periods.
The non-GAAP financial measures primarily identify and exclude certain
discrete items, such as merger-related expenses, amortization expenses
and expenses associated with share-based compensation required under ASC
718. The company uses these non-GAAP financial measures for evaluating
comparable financial performance against prior periods.
This release is available on the Stratasys web site at www.stratasys.com
Stratasys Ltd. (Nasdaq:SSYS), headquartered in Minneapolis,
Minnesota and Rehovot, Israel, is a leading global provider of 3D
printing and additive and additive manufacturing solutions. The
company's patented FDM®, PolyJet™ and WDM™ 3D Printing technologies
produce prototypes and manufactured goods directly from 3D CAD files or
other 3D content. Systems include 3D printers for idea development,
prototyping and direct digital manufacturing. Stratasys subsidiaries
include MakerBot and Solidscape, and the company operates a
digital-manufacturing service comprising RedEye, Solid Concepts and
Harvest Technologies. Stratasys has more than 2,800 employees, holds
over 600 granted or pending additive manufacturing patents globally, and
has received more than 25 awards for its technology and leadership.
Online at: www.stratasys.com
or http://blog.stratasys.com.
Stratasys Ltd.
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Consolidated Statements of Operations
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(in thousands, except per share data)
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2014
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2013
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2014
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2013
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Net sales
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Products
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$
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160,200
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$
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107,887
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$
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443,542
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$
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279,910
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Services
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43,410
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17,739
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89,474
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49,408
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203,610
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125,626
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533,016
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329,318
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Cost of sales
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Products
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85,437
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53,565
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219,853
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|
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148,339
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Services
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30,326
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|
|
11,469
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|
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55,954
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32,608
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115,763
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65,034
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275,807
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180,947
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Gross profit
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87,847
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60,592
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257,209
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148,371
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Operating expenses
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Research and development, net
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23,353
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13,514
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59,081
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34,640
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Selling, general and administrative
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110,803
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51,587
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256,349
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137,577
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Change in the fair value of obligations in connection with
acquisitions
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5,578
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1,607
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(1,289
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)
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1,607
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139,734
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66,708
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314,141
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173,824
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Operating loss
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(51,887
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)
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(6,116
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)
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(56,932
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)
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(25,453
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)
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Other income (loss)
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(1,384
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)
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(452
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)
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(2,383
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)
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200
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Loss before income taxes
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(53,271
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)
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(6,568
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)
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(59,315
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)
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(25,253
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)
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Income taxes (benefit)
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(21,919
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)
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80
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(31,877
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)
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(337
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)
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Net loss
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$
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(31,352
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)
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$
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(6,648
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)
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$
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(27,438
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)
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$
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(24,916
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)
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Net loss (income) attributable to non-controlling interest
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$
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(24
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)
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$
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(22
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)
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$
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(24
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)
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$
|
46
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Net loss attributable to Stratasys Ltd.
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$
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(31,328
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)
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$
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(6,626
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)
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$
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(27,414
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)
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$
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(24,962
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)
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Net loss per ordinary share attributable to Stratasys Ltd.
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Basic
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$
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(0.62
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$
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(0.16
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$
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(0.55
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$
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(0.63
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Diluted
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(0.62
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(0.16
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(0.55
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(0.63
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Weighted average ordinary shares outstanding
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Basic
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50,490
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41,976
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49,717
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39,754
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Diluted
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50,490
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41,976
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49,717
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39,754
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Stratasys Ltd.
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Consolidated Balance Sheets
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(in thousands)
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|
September 30,
|
|
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December 31,
|
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|
2014
|
|
|
2013
|
|
|
|
(unaudited)
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|
|
ASSETS
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Current assets
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Cash and cash equivalents
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$
|
383,501
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$
|
414,088
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Short-term bank deposits
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|
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|
75,375
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200,370
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Accounts receivable, net
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140,676
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|
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|
99,200
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Inventories
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119,262
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88,406
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Investment in sales-type leases, net
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7,478
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6,696
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Prepaid expenses
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9,759
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5,470
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Deferred income taxes
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|
22,268
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16,501
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Other current assets
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37,114
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21,398
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Total current assets
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|
795,433
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|
852,129
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Non-current assets
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Goodwill
|
|
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|
1,425,416
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|
|
|
|
1,195,891
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Other intangible assets, net
|
|
|
|
607,662
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|
|
|
|
622,330
|
Investment in sales-type leases
|
|
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|
14,643
|
|
|
|
|
11,219
|
Amounts funded in respect of employee rights upon retirement
|
|
|
|
3,255
|
|
|
|
|
3,166
|
Property, plant and equipment, net
|
|
|
|
143,335
|
|
|
|
|
91,005
|
Other non-current assets
|
|
|
|
8,137
|
|
|
|
|
6,481
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
2,202,448
|
|
|
|
|
1,930,092
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
2,997,881
|
|
|
|
$
|
2,782,221
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
39,093
|
|
|
|
$
|
35,375
|
Short term debt
|
|
|
|
50,000
|
|
|
|
|
-
|
Accrued expenses and other current liabilities
|
|
|
|
40,530
|
|
|
|
|
32,849
|
Accrued compensation and related benefits
|
|
|
|
36,228
|
|
|
|
|
21,441
|
Obligations in connection with acquisitions
|
|
|
|
42,037
|
|
|
|
|
12,027
|
Unearned revenues
|
|
|
|
40,909
|
|
|
|
|
36,033
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
248,797
|
|
|
|
|
137,725
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Employee rights upon retirement
|
|
|
|
4,859
|
|
|
|
|
4,683
|
Obligations in connection with acquisitions - long term
|
|
|
|
37,132
|
|
|
|
|
16,998
|
Deferred tax liabilities
|
|
|
|
65,393
|
|
|
|
|
105,901
|
Unearned revenues - long-term
|
|
|
|
5,528
|
|
|
|
|
3,315
|
Other non-current liabilities
|
|
|
|
18,502
|
|
|
|
|
13,812
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
380,211
|
|
|
|
|
282,434
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000
shares; 50,898 and 49,211 shares issued and outstanding at
September 30, 2014 and December 31, 2013, respectively
|
|
|
|
139
|
|
|
|
|
133
|
Additional paid-in capital
|
|
|
|
2,560,256
|
|
|
|
|
2,412,197
|
Retained earnings
|
|
|
|
58,135
|
|
|
|
|
85,549
|
Accumulated other comprehensive income (loss)
|
|
|
|
(1,355
|
)
|
|
|
|
1,908
|
Equity attributable to Stratasys Ltd.
|
|
|
|
2,617,175
|
|
|
|
|
2,499,787
|
Non-controlling interest
|
|
|
|
495
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
2,617,670
|
|
|
|
|
2,499,787
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
$
|
2,997,881
|
|
|
|
$
|
2,782,221
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
|
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
(unaudited)
|
|
|
Adjustments*
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
Adjustments*
|
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
$
|
160,200
|
|
|
|
$
|
-
|
|
|
|
$
|
160,200
|
|
|
|
$
|
107,887
|
|
|
|
$
|
434
|
|
|
|
$
|
108,321
|
|
Services
|
|
|
|
43,410
|
|
|
|
|
-
|
|
|
|
|
43,410
|
|
|
|
|
17,739
|
|
|
|
|
-
|
|
|
|
|
17,739
|
|
|
|
|
|
203,610
|
|
|
|
|
-
|
|
|
|
|
203,610
|
|
|
|
|
125,626
|
|
|
|
|
434
|
|
|
|
|
126,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
85,437
|
|
|
|
|
(26,760
|
)
|
|
|
|
58,677
|
|
|
|
|
53,565
|
|
|
|
|
(12,713
|
)
|
|
|
|
40,852
|
|
Services
|
|
|
|
30,326
|
|
|
|
|
(4,236
|
)
|
|
|
|
26,090
|
|
|
|
|
11,469
|
|
|
|
|
(395
|
)
|
|
|
|
11,074
|
|
|
|
|
|
115,763
|
|
|
|
|
(30,996
|
)
|
|
|
|
84,767
|
|
|
|
|
65,034
|
|
|
|
|
(13,108
|
)
|
|
|
|
51,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
87,847
|
|
|
|
|
30,996
|
|
|
|
|
118,843
|
|
|
|
|
60,592
|
|
|
|
|
13,542
|
|
|
|
|
74,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
|
23,353
|
|
|
|
|
(4,178
|
)
|
|
|
|
19,175
|
|
|
|
|
13,514
|
|
|
|
|
(1,538
|
)
|
|
|
|
11,976
|
|
Selling, general and administrative
|
|
|
|
110,803
|
|
|
|
|
(42,936
|
)
|
|
|
|
67,867
|
|
|
|
|
51,587
|
|
|
|
|
(13,660
|
)
|
|
|
|
37,927
|
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
5,578
|
|
|
|
|
(5,578
|
)
|
|
|
|
-
|
|
|
|
|
1,607
|
|
|
|
|
(1,607
|
)
|
|
|
|
-
|
|
|
|
|
|
139,734
|
|
|
|
|
(52,692
|
)
|
|
|
|
87,042
|
|
|
|
|
66,708
|
|
|
|
|
(16,805
|
)
|
|
|
|
49,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(51,887
|
)
|
|
|
|
83,688
|
|
|
|
|
31,801
|
|
|
|
|
(6,116
|
)
|
|
|
|
30,347
|
|
|
|
|
24,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loss
|
|
|
|
(1,384
|
)
|
|
|
|
-
|
|
|
|
|
(1,384
|
)
|
|
|
|
(452
|
)
|
|
|
|
-
|
|
|
|
|
(452
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(53,271
|
)
|
|
|
|
83,688
|
|
|
|
|
30,417
|
|
|
|
|
(6,568
|
)
|
|
|
|
30,347
|
|
|
|
|
23,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
|
(21,919
|
)
|
|
|
|
22,269
|
|
|
|
|
350
|
|
|
|
|
80
|
|
|
|
|
3,640
|
|
|
|
|
3,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(31,352
|
)
|
|
|
$
|
61,419
|
|
|
|
$
|
30,067
|
|
|
|
$
|
(6,648
|
)
|
|
|
$
|
26,707
|
|
|
|
$
|
20,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income) attributable to non-controlling interest
|
|
|
$
|
(24
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(24
|
)
|
|
|
$
|
(22
|
)
|
|
|
$
|
61
|
|
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
|
$
|
(31,328
|
)
|
|
|
$
|
61,419
|
|
|
|
$
|
30,091
|
|
|
|
$
|
(6,626
|
)
|
|
|
$
|
26,646
|
|
|
|
$
|
20,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.62
|
)
|
|
|
|
|
|
$
|
0.60
|
|
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
$
|
0.48
|
|
Diluted
|
|
|
|
(0.62
|
)
|
|
|
|
|
|
|
0.58
|
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
50,490
|
|
|
|
|
|
|
|
50,490
|
|
|
|
|
41,976
|
|
|
|
|
|
|
|
41,976
|
|
Diluted
|
|
|
|
50,490
|
|
|
|
|
|
|
|
52,261
|
|
|
|
|
41,976
|
|
|
|
|
|
|
|
44,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company considers these non-GAAP measures to be indicative of
its core operating results and facilitates a comparison of
operating results across reporting periods. The Company uses these
non-GAAP measures when evaluating its financial results as well as
for internal planning and forecasting purposes, however these
measures should not be viewed as a substitute for the Company's
GAAP results.
|
|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for
further information regarding adjustments.
|
|
|
Stratasys Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014
|
|
|
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
(unaudited)
|
|
|
Adjustments*
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
Adjustments*
|
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
$
|
443,542
|
|
|
|
$
|
235
|
|
|
|
$
|
443,777
|
|
|
|
$
|
279,910
|
|
|
|
$
|
1,647
|
|
|
|
$
|
281,557
|
Services
|
|
|
|
89,474
|
|
|
|
|
-
|
|
|
|
|
89,474
|
|
|
|
|
49,408
|
|
|
|
|
-
|
|
|
|
|
49,408
|
|
|
|
|
533,016
|
|
|
|
|
235
|
|
|
|
|
533,251
|
|
|
|
|
329,318
|
|
|
|
|
1,647
|
|
|
|
|
330,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
219,853
|
|
|
|
|
(55,228
|
)
|
|
|
|
164,625
|
|
|
|
|
148,339
|
|
|
|
|
(44,062
|
)
|
|
|
|
104,277
|
Services
|
|
|
|
55,954
|
|
|
|
|
(5,010
|
)
|
|
|
|
50,944
|
|
|
|
|
32,608
|
|
|
|
|
(1,080
|
)
|
|
|
|
31,528
|
|
|
|
|
275,807
|
|
|
|
|
(60,238
|
)
|
|
|
|
215,569
|
|
|
|
|
180,947
|
|
|
|
|
(45,142
|
)
|
|
|
|
135,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
257,209
|
|
|
|
|
60,473
|
|
|
|
|
317,682
|
|
|
|
|
148,371
|
|
|
|
|
46,789
|
|
|
|
|
195,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
|
59,081
|
|
|
|
|
(6,991
|
)
|
|
|
|
52,090
|
|
|
|
|
34,640
|
|
|
|
|
(3,282
|
)
|
|
|
|
31,358
|
Selling, general and administrative
|
|
|
|
256,349
|
|
|
|
|
(74,076
|
)
|
|
|
|
182,273
|
|
|
|
|
137,577
|
|
|
|
|
(40,017
|
)
|
|
|
|
97,560
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
(1,289
|
)
|
|
|
|
1,289
|
|
|
|
|
-
|
|
|
|
|
1,607
|
|
|
|
|
(1,607
|
)
|
|
|
|
-
|
|
|
|
|
314,141
|
|
|
|
|
(79,778
|
)
|
|
|
|
234,363
|
|
|
|
|
173,824
|
|
|
|
|
(44,906
|
)
|
|
|
|
128,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(56,932
|
)
|
|
|
|
140,251
|
|
|
|
|
83,319
|
|
|
|
|
(25,453
|
)
|
|
|
|
91,695
|
|
|
|
|
66,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss)
|
|
|
|
(2,383
|
)
|
|
|
|
-
|
|
|
|
|
(2,383
|
)
|
|
|
|
200
|
|
|
|
|
-
|
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(59,315
|
)
|
|
|
|
140,251
|
|
|
|
|
80,936
|
|
|
|
|
(25,253
|
)
|
|
|
|
91,695
|
|
|
|
|
66,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
|
(31,877
|
)
|
|
|
|
34,153
|
|
|
|
|
2,276
|
|
|
|
|
(337
|
)
|
|
|
|
10,442
|
|
|
|
|
10,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(27,438
|
)
|
|
|
$
|
106,098
|
|
|
|
$
|
78,660
|
|
|
|
$
|
(24,916
|
)
|
|
|
$
|
81,253
|
|
|
|
$
|
56,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income) attributable to non-controlling interest
|
|
|
$
|
(24
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(24
|
)
|
|
|
$
|
46
|
|
|
|
$
|
126
|
|
|
|
$
|
172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
|
$
|
(27,414
|
)
|
|
|
$
|
106,098
|
|
|
|
$
|
78,684
|
|
|
|
$
|
(24,962
|
)
|
|
|
$
|
81,127
|
|
|
|
$
|
56,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.55
|
)
|
|
|
|
|
|
$
|
1.58
|
|
|
|
$
|
(0.63
|
)
|
|
|
|
|
|
$
|
1.41
|
Diluted
|
|
|
|
(0.55
|
)
|
|
|
|
|
|
|
1.53
|
|
|
|
|
(0.63
|
)
|
|
|
|
|
|
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
49,717
|
|
|
|
|
|
|
|
49,717
|
|
|
|
|
39,754
|
|
|
|
|
|
|
|
39,754
|
Diluted
|
|
|
|
49,717
|
|
|
|
|
|
|
|
51,573
|
|
|
|
|
39,754
|
|
|
|
|
|
|
|
42,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company considers these non-GAAP measures to be indicative of
its core operating results and facilitates a comparison of
operating results across reporting periods. The Company uses these
non-GAAP measures when evaluating its financial results as well as
for internal planning and forecasting purposes, however these
measures should not be viewed as a substitute for the Company's
GAAP results.
|
|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for
further information regarding adjustments.
|
|
|
Stratasys Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net sales, products
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue step-up
|
|
|
$
|
-
|
|
|
|
$
|
434
|
|
|
|
$
|
235
|
|
|
|
$
|
1,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, products
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(14,328
|
)
|
|
|
|
(12,252
|
)
|
|
|
|
(41,582
|
)
|
|
|
|
(42,795
|
)
|
Impairment charges
|
|
|
|
(11,635
|
)
|
|
|
|
-
|
|
|
|
|
(11,635
|
)
|
|
|
|
-
|
|
Non-cash stock-based compensation expense
|
|
|
|
(797
|
)
|
|
|
|
(406
|
)
|
|
|
|
(2,011
|
)
|
|
|
|
(1,039
|
)
|
Merger related expense
|
|
|
|
-
|
|
|
|
|
(55
|
)
|
|
|
|
-
|
|
|
|
|
(228
|
)
|
|
|
|
|
(26,760
|
)
|
|
|
|
(12,713
|
)
|
|
|
|
(55,228
|
)
|
|
|
|
(44,062
|
)
|
Cost of sales, services
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(536
|
)
|
|
|
|
-
|
|
|
|
|
(537
|
)
|
|
|
|
-
|
|
Non-cash stock-based compensation expense
|
|
|
|
(485
|
)
|
|
|
|
(387
|
)
|
|
|
|
(1,217
|
)
|
|
|
|
(1,020
|
)
|
Merger related expense
|
|
|
|
(3,215
|
)
|
|
|
|
(8
|
)
|
|
|
|
(3,256
|
)
|
|
|
|
(60
|
)
|
|
|
|
|
(4,236
|
)
|
|
|
|
(395
|
)
|
|
|
|
(5,010
|
)
|
|
|
|
(1,080
|
)
|
Research and development, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
(1,098
|
)
|
|
|
|
(822
|
)
|
|
|
|
(2,921
|
)
|
|
|
|
(2,566
|
)
|
Impairment charges
|
|
|
|
(3,000
|
)
|
|
|
|
-
|
|
|
|
|
(3,000
|
)
|
|
|
|
-
|
|
Merger related expense
|
|
|
|
(80
|
)
|
|
|
|
(716
|
)
|
|
|
|
(1,070
|
)
|
|
|
|
(716
|
)
|
|
|
|
|
(4,178
|
)
|
|
|
|
(1,538
|
)
|
|
|
|
(6,991
|
)
|
|
|
|
(3,282
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(6,474
|
)
|
|
|
|
(3,838
|
)
|
|
|
|
(17,344
|
)
|
|
|
|
(14,758
|
)
|
Non-cash stock-based compensation expense
|
|
|
|
(5,217
|
)
|
|
|
|
(4,997
|
)
|
|
|
|
(15,262
|
)
|
|
|
|
(12,837
|
)
|
Merger and acquisition related expense
|
|
|
|
(31,245
|
)
|
|
|
|
(4,825
|
)
|
|
|
|
(41,470
|
)
|
|
|
|
(12,422
|
)
|
|
|
|
|
(42,936
|
)
|
|
|
|
(13,660
|
)
|
|
|
|
(74,076
|
)
|
|
|
|
(40,017
|
)
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
(5,578
|
)
|
|
|
|
(1,607
|
)
|
|
|
|
1,289
|
|
|
|
|
(1,607
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense related to non-GAAP adjustments
|
|
|
|
22,269
|
|
|
|
|
3,640
|
|
|
|
|
34,153
|
|
|
|
|
10,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense attributable to
non-controlling interest
|
|
|
|
-
|
|
|
|
|
61
|
|
|
|
|
-
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
61,419
|
|
|
|
$
|
26,646
|
|
|
|
$
|
106,098
|
|
|
|
$
|
81,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
|
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance
|
|
Fiscal Year 2014
|
|
|
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
($31.6) to ($24.4)
|
|
|
|
|
Adjustments
|
|
|
|
Stock-based compensation expense
|
|
|
$29.4 to $29.9
|
Intangible assets amortization expense
|
|
|
$80.6 to $81.1
|
Impairment charges
|
|
|
$14.6
|
Merger related expense
|
|
|
$66.7 to $68.7
|
Tax expense related to Non-GAAP adjustments
|
|
|
($46.9) to ($47.9)
|
|
|
|
|
Non-GAAP net income
|
|
|
$114.9 to $120.1
|
|
|
|
|
GAAP loss per share
|
|
|
($0.63) to ($0.49)
|
|
|
|
|
Non-GAAP diluted earnings per share
|
|
|
$2.21 to $2.31
|
|
|
|
|
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