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Stratasys cuts profit forecast [ITWeb](ITWeb Via Acquire Media NewsEdge) 3D printer maker Stratasys cut its profit forecast for 2014, citing its recent acquisition of computer-aided design systems developer GrabCAD and high development costs. Stratasys's shares fell 12.5% yesterday morning, as investors ignored the company's better-than-expected third-quarter revenue and profit. Stratasys completed its purchase of GrabCAD on 23 September. The financial details of the deal were not disclosed. The acquisition, which is not yet contributing to the company's revenue, includes ongoing developmental costs that will affect fourth quarter earnings, Shane Glenn, Stratasys' vice-president of investor relations said during a conference call. "I think what is putting the stock under pressure is the market's concern about these levels of expense, [and] how long will they persist," said John Baliotti, an analyst at Janney Montgomery Scott, told Reuters. Industries use 3D printing to make prototypes and specialised tools, mouldings and parts, but there is growing demand for home 3D printers that can churn out simple products. 3D printer shipments are expected to more than double every year between 2015 and 2018, by which time worldwide shipments are likely to have reached more than 2.3 million, according to market research firm Gartner. Hewlett-Packard said last week it had developed 3D-printing technology that can print 10 times faster and at far less expense than current products. The announcement sent Stratasys' shares down about 3%. Stratasys reported a 62% jump in revenue for the third quarter ended 30 September, helped by strong demand for its MakerBot-branded consumer products and services. Stratasys, which has traditionally sold industrial printers for $15 000 to $750 000, bought MakerBot last year to offer printers starting at just over $1 000. Net loss widens Stratasys said last week it holds about 55% of the market for printers priced over $10 000. It said it has about 35% of the market for desktop printers sold for under $10 000, largely through its MakerBot branded printers. Revenue from MakerBot rose by more than 80% in the third quarter compared with the same quarter of 2013. Total net sales jumped to $203.6 million from $125.6 million. Statasys reaffirmed its full-year revenue forecast of $750 million to $770 million, but cut its profit forecast to $2.21 to $2.31 per share from $2.25 to $2.35. Analysts on average expect a profit of $2.30 per share on revenue of $759 million, according to Thomson Reuters I/B/E/S. However, the net loss attributable to Stratasys widened to $31.3 million, or 62 cents per share, from $6.6 million, or 16 cents per share, a year earlier. Excluding items, the company earned 58 per share, beating the average analyst estimate of 57. Stratasys shares were trading at $105.70 at midday. Up to Tuesday's close, the stock had fallen about 10% this year. (c) 2014 ITWeb Limited. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |