[August 07, 2014] |
|
Stratasys Reports Record Second Quarter Financial Results
MINNEAPOLIS & REHOVOT, Israel --(Business Wire)--
Stratasys Ltd. (NASDAQ:SSYS) today announced record second quarter
financial results.
Total revenue for the second quarter of 2014 was $178.5 million, an
increase of 67% compared to the same period last year; or an increase of
35% when excluding the impact of acquisitions. Non-GAAP net income for
the second quarter increased by 51% over the same period last year to
$28.0 million, or $0.55 per diluted share. GAAP net loss for the period
was $173,000, or ($0.00) per basic share.
MakerBot branded products and services contributed $33.6 million to
second quarter revenue, driven by channel expansion initiatives and the
successful introductions of new products within the rapidly expanding
segment for desktop 3D printers.
The company raised its financial guidance for fiscal 2014 to account for
an improved outlook for the remainder of the year, as well as to account
for the recent acquisitions of Solid Concepts and Harvest Technologies.
The company raised its organic revenue growth forecast for 2014 to at
least 30%, versus a previous forecast of at least 25%.
Revenue guidance for 2014 increased to $750 - $770 million; versus
previous guidance of $660 - $680 million. Non-GAAP net income guidance
increased to $2.25 - $2.35 per diluted share, versus previous guidance
of $2.15 - $2.25 per diluted share.
The company also updated its long-term operating model, which included
raising its long-term annual organic revenue growth forecast to at least
25%, versus previous guidance of at least 20%.
In the second quarter the company announced agreements to acquire Solid
Concepts and Harvest Technologies, which will be combined with RedEye,
its existing digital manufacturing service business, to establish a
single additive manufacturing services business unit. Both transactions
closed in the third quarter, prior to the date of this release.
Q2-2014 Financial Results Summary:
-
Revenue for the second quarter of 2014 was $178.5 million,
representing a 67% increase over the $106.7 million non-GAAP revenue
and the $106.5 million GAAP revenue for the same period last year.
-
GAAP net loss for the second quarter was $173,000, or ($0.00) per
basic share, compared to a loss of $2.8 million, or ($0.07) per basic
share, for the same period last year.
-
Non-GAAP net income was $28.0 million for the second quarter, or $0.55
per diluted share, compared to non-GAAP net income of $18.6 million,
or $0.45 per diluted share, for the same period last year.
-
Second 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 and the approximately 3.9 million new
ordinary shares issued in consideration for the acquisition of
MakerBot in August of 2013.
-
Operating expenses expanded materially in the second quarter over last
year driven by the addition of MakerBot operating expenses, as well as
from significant incremental investments in sales and marketing
programs to support overall growth.
-
The company invested a net amount of $17.6 million in R&D projects
(non-GAAP basis) during the second quarter, representing 10% of
non-GAAP net sales; R&D expense was $19.0 million on a GAAP basis.
-
The company generated $4.8 million in cash from operations during the
second quarter, and currently holds $577.9 million in cash and cash
equivalents, and short term bank deposits, amounting to $11.7 per
share.
-
Non-GAAP EBITDA for the second quarter amounted to $34.6 million.
-
The company sold 14,909 3D printing and additive manufacturing systems
during the quarter, and on a combined pro forma basis, a cumulative
99,529 systems worldwide through June 30, 2014.
"We continue to observe strong positive sales momentum for our
higher-performance systems and materials, which is reflected in the
impressive 35% organic revenue growth we generated during the second
quarter," said David Reis, chief executive officer of Stratasys.
"Equally impressive were the sales of MakerBot products and services,
which contributed $33.6 million of revenue during the period, driven by
our expanding distribution network and the successful launch of three
MakerBot branded 3D printers in the first half of the year. We are very
pleased with our second quarter results, which represent quarterly
records in revenue, non-GAAP net income and non-GAAP earnings per share."
Recent Business Highlights:
-
Completed the acquisitions of Solid Concepts and Harvest Technologies,
which are intended to create a leading strategic platform to meet
customers' additive manufacturing needs through an expanded technology
and business offering.
-
Recognized strong demand for high-end systems, driven by manufacturing
applications, as well as ongoing strong demand for the Objet500
Connex3 Color Multi-material 3D Printer.
-
Began shipping the MakerBot Replicator Mini Compact Desktop 3D Printer
and MakerBot Replicator Z18 Desktop 3D Printer; and announced multiple
new software tools and content agreements for the MakerBot 3D Printing
Ecosystem.
-
Expanded the MakerBot sales channel to include Home Depot and Tech
Data, as well as Stratasys Japan in Asia and the creation of MakerBot
Europe.
-
Observed strong growth for dental solutions, supported by the
establishment of a Dental Advisory Board, as well as the introduction
of two low-cost entry-level systems targeting dental applications.
"We expect our positive momentum to continue as we begin the second half
of 2014," continued Reis. "Reflecting our favorable outlook, we are
increasing our projection for organic revenue growth in 2014 to at least
30%, and we are raising our financial guidance accordingly. In addition,
we are adjusting our outlook to account for the recent acquisitions of
Solid Concepts and Harvest Technologies, acquisitions that we now
believe will be modestly accretive to non-GAAP earnings per share in
2014. Longer term, we believe these acquisitions will enable us to
better serve our customers, ultimately providing synergies for our
combined organization. We are excited about our many opportunities, and
believe we are well positioned within our rapidly growing industry."
Financial Guidance:
Stratasys updated the following information regarding the company's
projected revenue and net income for the fiscal year ending December 31,
2014:
-
Revenue guidance was increased to $750 - $770 million; versus previous
guidance of $660 - $680 million.
-
Non-GAAP net income guidance was increased to $117 - $122 million, or
$2.25 - $2.35 per diluted share; versus previous guidance of $113 -
$119 million, or $2.15 - $2.25 per diluted share.
-
The acquisitions of Solid Concepts and Harvest Technologies are
expected to be modestly accretive to Stratasys' non-GAAP earnings per
share in 2014.
-
The company expects organic revenue growth, excluding acquisitions, of
at least 30% in 2014 over 2013; versus the previous guidance of at
least 25% growth.
GAAP financial guidance is not provided in this release given the
initial accounting for the business combination of Solid Concepts and
Harvest Technologies is incomplete, thus making the supplemental
information required to calculate GAAP earnings unavailable. GAAP
financial guidance will be calculated and communicated upon the
completion of that analysis.
Stratasys updated the following information regarding the company's
long-term operating model:
-
Annual organic revenue growth of at least 25%; versus the previous
projection of at least 20%.
-
Non-GAAP operating income as a percent of sales of 18% to 23%, versus
the previous projection of 20% to 25%.
-
Non-GAAP effective tax rate of 10% to 15%; versus the previous
projection of 15% to 20%.
-
Non-GAAP net income as a percent of sales projection remains unchanged
at 16% to 21%.
Stratasys provided the following additional information regarding the
company's performance and strategic plans for 2014:
-
Operating expenses are projected to 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.
-
Growth in operating expenses in 2014 will include significant
investments to support the integration and alignment of the recent
acquisitions of Solid Concepts and Harvest Technologies.
-
Capital expenditures are projected at $50 million to $70 million,
which includes significant investments in manufacturing capacity in
anticipation and support of future growth.
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 Ltd. Q2-2014 Conference Call Details
Stratasys will hold a conference call to discuss its second quarter
financial results on Thursday, August 7, 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/aeagor6k.
To participate by telephone, the domestic dial-in number is 877-415-3180
and the international dial-in is 857-244-7323. The access code is
84391755. 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,
and Harvest Technologies 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 2,500 employees, holds
over 560 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.
|
|
Consolidated Statements of Operations
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
$
|
154,090
|
|
|
|
$
|
90,213
|
|
|
|
$
|
283,342
|
|
|
|
$
|
172,023
|
|
Services
|
|
|
|
24,375
|
|
|
|
|
16,272
|
|
|
|
|
46,064
|
|
|
|
|
31,669
|
|
|
|
|
|
178,465
|
|
|
|
|
106,485
|
|
|
|
|
329,406
|
|
|
|
|
203,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
73,394
|
|
|
|
|
45,731
|
|
|
|
|
134,416
|
|
|
|
|
94,774
|
|
Services
|
|
|
|
13,437
|
|
|
|
|
10,349
|
|
|
|
|
25,628
|
|
|
|
|
21,139
|
|
|
|
|
|
86,831
|
|
|
|
|
56,080
|
|
|
|
|
160,044
|
|
|
|
|
115,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
91,634
|
|
|
|
|
50,405
|
|
|
|
|
169,362
|
|
|
|
|
87,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
|
18,957
|
|
|
|
|
10,337
|
|
|
|
|
35,728
|
|
|
|
|
21,126
|
|
Selling, general and administrative
|
|
|
|
77,929
|
|
|
|
|
42,665
|
|
|
|
|
145,546
|
|
|
|
|
85,990
|
|
Change in fair value of earn-out obligations
|
|
|
|
628
|
|
|
|
|
-
|
|
|
|
|
(6,867
|
)
|
|
|
|
-
|
|
|
|
|
|
97,514
|
|
|
|
|
53,002
|
|
|
|
|
174,407
|
|
|
|
|
107,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
|
(5,880
|
)
|
|
|
|
(2,597
|
)
|
|
|
|
(5,045
|
)
|
|
|
|
(19,337
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss)
|
|
|
|
337
|
|
|
|
|
138
|
|
|
|
|
(999
|
)
|
|
|
|
652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
|
(5,543
|
)
|
|
|
|
(2,459
|
)
|
|
|
|
(6,044
|
)
|
|
|
|
(18,685
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
|
(5,370
|
)
|
|
|
|
326
|
|
|
|
|
(9,958
|
)
|
|
|
|
(417
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(173
|
)
|
|
|
$
|
(2,785
|
)
|
|
|
$
|
3,914
|
|
|
|
$
|
(18,268
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
$
|
-
|
|
|
|
$
|
15
|
|
|
|
$
|
-
|
|
|
|
$
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
|
$
|
(173
|
)
|
|
|
$
|
(2,800
|
)
|
|
|
$
|
3,914
|
|
|
|
$
|
(18,336
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.00
|
)
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
0.08
|
|
|
|
$
|
(0.47
|
)
|
Diluted
|
|
|
|
(0.00
|
)
|
|
|
|
(0.07
|
)
|
|
|
|
0.08
|
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
49,373
|
|
|
|
|
38,781
|
|
|
|
|
49,323
|
|
|
|
|
38,637
|
|
Diluted
|
|
|
|
49,373
|
|
|
|
|
38,781
|
|
|
|
|
51,238
|
|
|
|
|
38,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
|
Consolidated Balance Sheets
|
|
(in thousands)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
502,314
|
|
|
$
|
414,088
|
Short-term bank deposits
|
|
|
|
75,622
|
|
|
|
200,370
|
Accounts receivable, net
|
|
|
|
113,583
|
|
|
|
99,200
|
Inventories
|
|
|
|
114,346
|
|
|
|
88,406
|
Investment in sales-type leases, net
|
|
|
|
6,651
|
|
|
|
6,696
|
Prepaid expenses
|
|
|
|
7,966
|
|
|
|
5,470
|
Deferred income taxes
|
|
|
|
22,448
|
|
|
|
16,501
|
Other current assets
|
|
|
|
25,325
|
|
|
|
21,398
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
868,255
|
|
|
|
852,129
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Goodwill
|
|
|
|
1,203,296
|
|
|
|
1,195,891
|
Other intangible assets, net
|
|
|
|
587,566
|
|
|
|
622,330
|
Investment in sales-type leases
|
|
|
|
13,007
|
|
|
|
11,219
|
Amounts funded in respect of employee rights upon retirement
|
|
|
|
3,369
|
|
|
|
3,166
|
Property, plant and equipment, net
|
|
|
|
110,848
|
|
|
|
91,005
|
Other non-current assets
|
|
|
|
4,827
|
|
|
|
6,481
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
1,922,913
|
|
|
|
1,930,092
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
2,791,168
|
|
|
$
|
2,782,221
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
38,856
|
|
|
$
|
35,375
|
Accrued expenses and other current liabilities
|
|
|
|
32,919
|
|
|
|
32,849
|
Accrued compensation and related benefits
|
|
|
|
27,427
|
|
|
|
21,441
|
Earn-out obligation
|
|
|
|
11,458
|
|
|
|
12,027
|
Unearned revenues
|
|
|
|
41,895
|
|
|
|
36,033
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
152,555
|
|
|
|
137,725
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Employee rights upon retirement
|
|
|
|
4,999
|
|
|
|
4,683
|
Earn-out obligation - long-term
|
|
|
|
-
|
|
|
|
16,998
|
Deferred tax liabilities
|
|
|
|
97,955
|
|
|
|
105,901
|
Unearned revenues - long-term
|
|
|
|
4,618
|
|
|
|
3,315
|
Other non-current liabilities
|
|
|
|
10,870
|
|
|
|
13,812
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
270,997
|
|
|
|
282,434
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000
shares; 49,436 and 49,211 shares issued and outstanding at June
30, 2014 and December 31, 2013, respectively
|
|
|
|
134
|
|
|
|
133
|
Additional paid-in capital
|
|
|
|
2,428,978
|
|
|
|
2,412,197
|
Retained earnings
|
|
|
|
89,463
|
|
|
|
85,549
|
Accumulated other comprehensive income
|
|
|
|
1,596
|
|
|
|
1,908
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
2,520,171
|
|
|
|
2,499,787
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
$
|
2,791,168
|
|
|
$
|
2,782,221
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
|
Reconciliation of GAAP to Non-GAAP Results of Operations
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2014
|
|
Three Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
(unaudited)
|
|
Adjustments*
|
|
(unaudited)
|
|
(unaudited)
|
|
Adjustments*
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
154,090
|
|
|
$
|
-
|
|
|
$
|
154,090
|
|
$
|
90,213
|
|
|
$
|
199
|
|
|
$
|
90,412
|
Services
|
|
|
24,375
|
|
|
|
-
|
|
|
|
24,375
|
|
|
16,272
|
|
|
|
-
|
|
|
|
16,272
|
|
|
|
178,465
|
|
|
|
-
|
|
|
|
178,465
|
|
|
106,485
|
|
|
|
199
|
|
|
|
106,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
73,394
|
|
|
|
(14,739
|
)
|
|
|
58,655
|
|
|
45,731
|
|
|
|
(12,171
|
)
|
|
|
33,560
|
Services
|
|
|
13,437
|
|
|
|
(340
|
)
|
|
|
13,097
|
|
|
10,349
|
|
|
|
(343
|
)
|
|
|
10,006
|
|
|
|
86,831
|
|
|
|
(15,079
|
)
|
|
|
71,752
|
|
|
56,080
|
|
|
|
(12,514
|
)
|
|
|
43,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
91,634
|
|
|
|
15,079
|
|
|
|
106,713
|
|
|
50,405
|
|
|
|
12,713
|
|
|
|
63,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
18,957
|
|
|
|
(1,318
|
)
|
|
|
17,639
|
|
|
10,337
|
|
|
|
(846
|
)
|
|
|
9,491
|
Selling, general and administrative
|
|
|
77,929
|
|
|
|
(17,617
|
)
|
|
|
60,312
|
|
|
42,665
|
|
|
|
(10,748
|
)
|
|
|
31,917
|
Change in fair value of earn-out obligations
|
|
|
628
|
|
|
|
(628
|
)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
97,514
|
|
|
|
(19,563
|
)
|
|
|
77,951
|
|
|
53,002
|
|
|
|
(11,594
|
)
|
|
|
41,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(5,880
|
)
|
|
|
34,642
|
|
|
|
28,762
|
|
|
(2,597
|
)
|
|
|
24,307
|
|
|
|
21,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
337
|
|
|
|
-
|
|
|
|
337
|
|
|
138
|
|
|
|
-
|
|
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(5,543
|
)
|
|
|
34,642
|
|
|
|
29,099
|
|
|
(2,459
|
)
|
|
|
24,307
|
|
|
|
21,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
(5,370
|
)
|
|
|
6,475
|
|
|
|
1,105
|
|
|
326
|
|
|
|
2,916
|
|
|
|
3,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(173
|
)
|
|
$
|
28,167
|
|
|
$
|
27,994
|
|
$
|
(2,785
|
)
|
|
$
|
21,391
|
|
|
$
|
18,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
15
|
|
|
$
|
25
|
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
$
|
(173
|
)
|
|
$
|
28,167
|
|
|
$
|
27,994
|
|
$
|
(2,800
|
)
|
|
$
|
21,366
|
|
|
$
|
18,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.00
|
)
|
|
|
|
$
|
0.57
|
|
$
|
(0.07
|
)
|
|
|
|
$
|
0.48
|
Diluted
|
|
|
(0.00
|
)
|
|
|
|
|
0.55
|
|
|
(0.07
|
)
|
|
|
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
49,373
|
|
|
|
|
|
49,373
|
|
|
38,781
|
|
|
|
|
|
38,781
|
Diluted
|
|
|
49,373
|
|
|
|
|
|
51,196
|
|
|
38,781
|
|
|
|
|
|
41,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014
|
|
|
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
(unaudited)
|
|
|
Adjustments*
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
Adjustments*
|
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
$
|
283,342
|
|
|
|
$
|
235
|
|
|
|
$
|
283,577
|
|
|
|
$
|
172,023
|
|
|
|
$
|
1,214
|
|
|
|
$
|
173,237
|
Services
|
|
|
|
46,064
|
|
|
|
|
-
|
|
|
|
|
46,064
|
|
|
|
|
31,669
|
|
|
|
|
-
|
|
|
|
|
31,669
|
|
|
|
|
329,406
|
|
|
|
|
235
|
|
|
|
|
329,641
|
|
|
|
|
203,692
|
|
|
|
|
1,214
|
|
|
|
|
204,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
134,416
|
|
|
|
|
(28,468
|
)
|
|
|
|
105,948
|
|
|
|
|
94,774
|
|
|
|
|
(31,348
|
)
|
|
|
|
63,426
|
Services
|
|
|
|
25,628
|
|
|
|
|
(774
|
)
|
|
|
|
24,854
|
|
|
|
|
21,139
|
|
|
|
|
(685
|
)
|
|
|
|
20,454
|
|
|
|
|
160,044
|
|
|
|
|
(29,242
|
)
|
|
|
|
130,802
|
|
|
|
|
115,913
|
|
|
|
|
(32,033
|
)
|
|
|
|
83,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
169,362
|
|
|
|
|
29,477
|
|
|
|
|
198,839
|
|
|
|
|
87,779
|
|
|
|
|
33,247
|
|
|
|
|
121,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
|
35,728
|
|
|
|
|
(2,813
|
)
|
|
|
|
32,915
|
|
|
|
|
21,126
|
|
|
|
|
(1,745
|
)
|
|
|
|
19,381
|
Selling, general and administrative
|
|
|
|
145,546
|
|
|
|
|
(31,140
|
)
|
|
|
|
114,406
|
|
|
|
|
85,990
|
|
|
|
|
(26,356
|
)
|
|
|
|
59,634
|
Change in fair value of earn-out obligations
|
|
|
|
(6,867
|
)
|
|
|
|
6,867
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
174,407
|
|
|
|
|
(27,086
|
)
|
|
|
|
147,321
|
|
|
|
|
107,116
|
|
|
|
|
(28,101
|
)
|
|
|
|
79,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(5,045
|
)
|
|
|
|
56,563
|
|
|
|
|
51,518
|
|
|
|
|
(19,337
|
)
|
|
|
|
61,348
|
|
|
|
|
42,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss)
|
|
|
|
(999
|
)
|
|
|
|
-
|
|
|
|
|
(999
|
)
|
|
|
|
652
|
|
|
|
|
-
|
|
|
|
|
652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(6,044
|
)
|
|
|
|
56,563
|
|
|
|
|
50,519
|
|
|
|
|
(18,685
|
)
|
|
|
|
61,348
|
|
|
|
|
42,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
|
(9,958
|
)
|
|
|
|
11,884
|
|
|
|
|
1,926
|
|
|
|
|
(417
|
)
|
|
|
|
6,802
|
|
|
|
|
6,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
3,914
|
|
|
|
$
|
44,679
|
|
|
|
$
|
48,593
|
|
|
|
$
|
(18,268
|
)
|
|
|
$
|
54,546
|
|
|
|
$
|
36,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
68
|
|
|
|
$
|
65
|
|
|
|
$
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
|
$
|
3,914
|
|
|
|
$
|
44,679
|
|
|
|
$
|
48,593
|
|
|
|
$
|
(18,336
|
)
|
|
|
$
|
54,481
|
|
|
|
$
|
36,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.08
|
|
|
|
|
|
|
$
|
0.99
|
|
|
|
$
|
(0.47
|
)
|
|
|
|
|
|
$
|
0.94
|
Diluted
|
|
|
|
0.08
|
|
|
|
|
|
|
|
0.95
|
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
49,323
|
|
|
|
|
|
|
|
49,323
|
|
|
|
|
38,637
|
|
|
|
|
|
|
|
38,637
|
Diluted
|
|
|
|
51,238
|
|
|
|
|
|
|
|
51,221
|
|
|
|
|
38,637
|
|
|
|
|
|
|
|
41,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net sales, products
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue step-up
|
|
|
$
|
-
|
|
|
|
$
|
199
|
|
|
|
$
|
235
|
|
|
|
$
|
1,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, products
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(14,029
|
)
|
|
|
|
(11,780
|
)
|
|
|
|
(27,254
|
)
|
|
|
|
(30,542
|
)
|
Non-cash stock-based compensation expense
|
|
|
|
(710
|
)
|
|
|
|
(314
|
)
|
|
|
|
(1,214
|
)
|
|
|
|
(633
|
)
|
Merger related expense
|
|
|
|
-
|
|
|
|
|
(77
|
)
|
|
|
|
-
|
|
|
|
|
(173
|
)
|
|
|
|
|
(14,739
|
)
|
|
|
|
(12,171
|
)
|
|
|
|
(28,468
|
)
|
|
|
|
(31,348
|
)
|
Cost of sales, services
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
(324
|
)
|
|
|
|
(318
|
)
|
|
|
|
(732
|
)
|
|
|
|
(633
|
)
|
Merger related expense
|
|
|
|
(16
|
)
|
|
|
|
(25
|
)
|
|
|
|
(42
|
)
|
|
|
|
(52
|
)
|
|
|
|
|
(340
|
)
|
|
|
|
(343
|
)
|
|
|
|
(774
|
)
|
|
|
|
(685
|
)
|
Research and development, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
(885
|
)
|
|
|
|
(846
|
)
|
|
|
|
(1,823
|
)
|
|
|
|
(1,745
|
)
|
Performance bonus expense
|
|
|
|
(347
|
)
|
|
|
|
-
|
|
|
|
|
(904
|
)
|
|
|
|
-
|
|
Merger related expense
|
|
|
|
(86
|
)
|
|
|
|
|
|
|
(86
|
)
|
|
|
|
|
|
|
|
(1,318
|
)
|
|
|
|
(846
|
)
|
|
|
|
(2,813
|
)
|
|
|
|
(1,745
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(5,507
|
)
|
|
|
|
(2,425
|
)
|
|
|
|
(10,871
|
)
|
|
|
|
(7,886
|
)
|
Non-cash stock-based compensation expense
|
|
|
|
(5,159
|
)
|
|
|
|
(3,881
|
)
|
|
|
|
(10,045
|
)
|
|
|
|
(7,839
|
)
|
Merger and acquisition related expense
|
|
|
|
(4,352
|
)
|
|
|
|
(4,442
|
)
|
|
|
|
(5,836
|
)
|
|
|
|
(10,631
|
)
|
Performance bonus expense
|
|
|
|
(2,599
|
)
|
|
|
|
-
|
|
|
|
|
(4,388
|
)
|
|
|
|
-
|
|
|
|
|
|
(17,617
|
)
|
|
|
|
(10,748
|
)
|
|
|
|
(31,140
|
)
|
|
|
|
(26,356
|
)
|
Change in fair value of earn-out obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Earn-out obligation
|
|
|
|
(628
|
)
|
|
|
|
-
|
|
|
|
|
6,867
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense related to non-GAAP adjustments
|
|
|
|
6,475
|
|
|
|
|
2,916
|
|
|
|
|
11,884
|
|
|
|
|
6,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense attributable to
non-controlling interest
|
|
|
|
-
|
|
|
|
|
25
|
|
|
|
|
-
|
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
28,167
|
|
|
|
$
|
21,366
|
|
|
|
$
|
44,679
|
|
|
|
$
|
54,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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