[March 02, 2015] |
|
Stratasys Reports Fourth Quarter and Fiscal Year 2014 Financial Results
Stratasys Ltd. (NASDAQ:SSYS) today announced financial results for the
fourth quarter and fiscal year 2014.
Q4-2014 Financial Results Summary:
-
Revenue for the fourth quarter of 2014 was $217 million, representing
a 40% increase over the $155.1 million for the same period last year.
-
GAAP net loss for the fourth quarter was $92.0 million, or ($1.81) per
share, compared to a loss of $2.0 million, or ($0.04) per share, for
the same period last year.
-
Non-GAAP net income for the fourth quarter was $24.9 million, or $0.48
per diluted share, compared to non-GAAP net income of $25.8 million,
or $0.50 per diluted share, reported for the same period last year.
-
Revenue from MakerBot branded products and services contributed $26.6
million to fourth quarter revenue.
-
The Company invested a net amount of $21.4 million in R&D projects
(non-GAAP basis) during the fourth quarter, representing 9.8% of net
sales.
-
The Company generated $14.9 million in cash from operations during the
fourth quarter, and finished the year with approximately $443 million
in cash and cash equivalents and short-term bank deposits. The cash
balance includes a $50 million drawdown on the company's revolving
debt facility.
-
EBITDA for the fourth quarter amounted to $29.6 million.
-
As previously announced, in December 2014, the Company updated the
goodwill impairment analysis of its MakerBot reporting unit. As a
result, the Company recognized a non-cash, non-tax-deductible goodwill
impairment charge of $102 million in the fourth quarter.
-
The Company sold 11,214 3D printing and additive manufacturing systems
during the quarter, and on a pro-forma combined basis, has sold a
total of 121,661 systems worldwide as of December 31, 2014.
Fiscal 2014 Financial Results Summary:
-
Non-GAAP revenue for fiscal 2014 was $750.4 million, representing a
54% increase over the $486.7 million for the same period last year.
GAAP revenue for fiscal 2014 was $750.1 million compared to $484.4
million for fiscal 2013.
-
GAAP net loss for fiscal 2014 was $119.4 million, or ($2.39) per
share, compared to a loss of $27.0 million, or ($0.64) per share, for
the same period last year.
-
Non-GAAP net income was $103.6 million for fiscal 2014, or $2.00 per
diluted share, compared to non-GAAP net income of $82.0 million, or
$1.84 per diluted share, reported for the same period last year.
-
Fiscal 2014 reported revenue and earnings were within the company's
pre-announced ranges provided on February 2, 2015.
-
Backlog at the end of 2014 amounted to $14.3 million, versus $28.5
million at the end of 2013.
David Reis, chief executive officer of Stratasys, said, "Growth in our
core business reflects the increasing demand for additive manufacturing,
and our leadership within the marketplace. During the fourth quarter,
MakerBot was affected by challenges associated with the introduction and
scaling of its new product platform and its rapidly evolving
distribution model. As market adoption continues to evolve and to the
extent MakerBot continues to establish and expand sales channels, the
Company expects MakerBot growth rates to ramp up to, or exceed, overall
Company averages by 2016."
Recent Business Highlights:
-
Launched 11 new 3D printing products and materials at Euromold 2014,
including two new Fortus FDM production systems as well as a
significant expansion of our triple-jetting Connex line of
multi-color, multi- material 3D printers.
-
Announced a multi-year investment plan focused on enhancing vertical
industry focus, expanding services, accelerating product development,
and building sales and marketing infrastructure- all designed to
support annual revenues of $3 billion in 2020.
-
Announced the combination and rebranding of Solid Concepts, Harvest
Technologies and RedEye to form Stratasys
Direct Manufacturing, a leading strategic platform to meet
customers' additive manufacturing needs, and drive further adoption of
Stratasys' Additive Manufacturing Solutions.
-
Expanded MakerBot's U.S. distribution channel to include Staples and
Fry's Electronics and announced a European distribution agreement with
Tech Data Europe's Datech.
-
Announced the development of new MakerBot PLA Composite Filaments at
this year's International CES that included iron, bronze, limestone,
and maple.
-
Completed the acquisition of certain assets of Hong Kong-based
Stratasys reseller Intelligent CAD/CAM Technology Ltd, strengthening
Stratasys' local presence and improving direct access to customers in
the Asia Pacific region.
-
The Econolyst, an Additive Manufacturing and 3D Printing consultancy
and research firm, led by Dr. Phil Reeves, a 20-year industry veteran
in the Additive Manufacturing space, joined Stratasys Services Group
to form the foundation of the new Stratasys Strategic Consulting
Division.
"Over the course of the past year we introduced 25 major new 3D printing
systems and materials, expanded our go-to-market initiatives, and
completed several strategic acquisitions. We are pleased with the
progress we have made in integrating our recent acquisitions, and we
look forward to enhancing our customer offering through the myriad
technologies offered by our newly branded Stratasys Direct Manufacturing
service, comprising Solid Concepts, Harvest Technologies and RedEye, as
well as GrabCAD. We are positioning Stratasys for long-term growth by
assembling best-in-class technologies and teams to build a market
leading company with the most comprehensive product and service
solutions in the industry," concluded Reis.
Financial Guidance:
Stratasys continues to expect to achieve its fiscal year 2015 guidance,
as previously provided in its February 2, 2015 press release:
-
Revenue of $940 million to $960 million.
-
Non-GAAP net income of $109 million to $118 million, or
$2.07 to $2.24 per diluted share.
-
GAAP net loss of $23 million to $10 million, or ($0.45) to ($0.20) per
share.
-
Tax rate of 5% to 10%.
-
Capital expenditures of $160 to $200 million.
-
Total operating expenses in 2015 are expected to be in the range of
46% to 47% of anticipated revenues.
-
Projected Non-GAAP net income is expected to be derived
disproportionately from the second half of fiscal 2015, driven by the
projected timing of revenue and operating expenses.
Non-GAAP earnings guidance excludes $85 million of projected
amortization of intangible assets; $32 million to $35 million of
share-based compensation expense; $41 million to $43 million in
non-recurring expenses related to acquisitions; and includes $30 million
to $31 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%.
Stratasys Ltd. Q4-2014 Conference Call Details
Stratasys will hold a conference call to discuss its fourth quarter
financial results on Monday, March 2, 2015 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/fsefp4qi.
The conference call script and accompanying slide presentation will be
available on the Stratasys Web site at www.stratasys.com
under the "Investors" tab.
To participate by telephone, the domestic dial-in number is 800-510-9691
and the international dial-in is 617-614-3453. The access code is
23883766. 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
The statements in this press release regarding Stratasys' business and
operating expectations, projections and goals, as well as its financial
guidance and projections under the caption "Financial Guidance," are
"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 "will," "expect," "anticipate,"
"continue," "believe," "project" or other similar words, but are not the
only way these statements are identified. 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 extent of
our success at introducing new or improved products and solutions that
gain market share; the extent of our success at efficiently and
successfully integrating the operations of various companies that we
have acquired or may acquire; the impact of competition and new
technologies; general market, political and economic conditions in the
countries in which we operate; projected capital expenditures and
liquidity; changes in our strategy; government regulations and
approvals; changes in customers' budgeting priorities; the overall
global economic environment; 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, 2014 to be filed with the U.S. Securities and Exchange Commission
(the "SEC") on March 3, 2015, 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 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 the Stratasys Direct
Manufacturing digital-manufacturing service comprising the services
previously provided by RedEye, Harvest Technologies and Solid Concepts.
Stratasys has more than 2,900 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.
|
Consolidated Balance Sheets
|
(in thousands)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
442,141
|
|
|
$
|
414,088
|
Short-term bank deposits
|
|
|
|
|
595
|
|
|
|
200,370
|
Accounts receivable, net
|
|
|
|
|
150,806
|
|
|
|
99,200
|
Inventories
|
|
|
|
|
123,385
|
|
|
|
88,406
|
Net investment in sales-type leases
|
|
|
|
8,170
|
|
|
|
6,696
|
Prepaid expenses
|
|
|
|
|
7,931
|
|
|
|
5,470
|
Deferred income taxes
|
|
|
|
|
25,697
|
|
|
|
16,501
|
Other current assets
|
|
|
|
|
37,903
|
|
|
|
21,398
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
796,628
|
|
|
|
852,129
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
1,323,502
|
|
|
|
1,195,891
|
Other intangible assets, net
|
|
|
|
597,903
|
|
|
|
622,330
|
Property, plant and equipment, net
|
|
|
|
157,036
|
|
|
|
91,005
|
Net investment in sales-type leases - long term
|
|
|
|
14,822
|
|
|
|
11,219
|
Other non-current assets
|
|
|
|
|
9,216
|
|
|
|
9,647
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
|
2,102,479
|
|
|
|
1,930,092
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
2,899,107
|
|
|
$
|
2,782,221
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
37,359
|
|
|
$
|
35,375
|
Short term debt
|
|
|
|
|
50,000
|
|
|
|
-
|
Accrued expenses and other current liabilities
|
|
|
|
47,760
|
|
|
|
32,849
|
Accrued compensation and related benefits
|
|
|
|
42,332
|
|
|
|
21,441
|
Obligations in connection with acquisitions
|
|
|
|
28,092
|
|
|
|
12,027
|
Deferred revenues
|
|
|
|
|
45,023
|
|
|
|
36,033
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
250,566
|
|
|
|
137,725
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Obligations in connection with acquisitions - long term
|
|
|
26,461
|
|
|
|
16,998
|
Deferred tax liabilities
|
|
|
|
|
55,835
|
|
|
|
105,901
|
Deferred revenues - long-term
|
|
|
|
5,946
|
|
|
|
3,315
|
Other non-current liabilities
|
|
|
|
|
25,091
|
|
|
|
18,495
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
|
113,333
|
|
|
|
144,709
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
363,899
|
|
|
|
282,434
|
|
|
|
|
|
|
|
|
Redeemable non-controlling interests
|
|
|
|
3,969
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000
shares; 50,923 and 49,211 shares issued and outstanding at
December 31, 2014 and December 31, 2013, respectively
|
|
|
139
|
|
|
|
133
|
Additional paid-in capital
|
|
|
|
|
2,568,149
|
|
|
|
2,412,197
|
Retained earnings (accumulated deficit)
|
|
|
|
(33,871
|
)
|
|
|
85,549
|
Accumulated other comprehensive income (loss)
|
|
|
|
(3,647
|
)
|
|
|
1,908
|
|
Equity attributable to Stratasys Ltd.
|
|
|
|
2,530,770
|
|
|
|
2,499,787
|
Non-controlling interest
|
|
|
|
|
469
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
2,531,239
|
|
|
|
2,499,787
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
$
|
2,899,107
|
|
|
$
|
2,782,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
Consolidated Statements of Operations
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
$
|
168,595
|
|
|
$
|
134,943
|
|
|
$
|
612,138
|
|
|
$
|
414,853
|
|
Services
|
|
|
|
|
48,517
|
|
|
|
20,142
|
|
|
|
137,991
|
|
|
|
69,550
|
|
|
|
|
|
|
217,112
|
|
|
|
155,085
|
|
|
|
750,129
|
|
|
|
484,403
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
82,985
|
|
|
|
65,088
|
|
|
|
302,838
|
|
|
|
213,427
|
|
Services
|
|
|
|
|
28,943
|
|
|
|
12,195
|
|
|
|
84,897
|
|
|
|
44,803
|
|
|
|
|
|
|
111,928
|
|
|
|
77,283
|
|
|
|
387,735
|
|
|
|
258,230
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
105,184
|
|
|
|
77,802
|
|
|
|
362,394
|
|
|
|
226,173
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
|
23,189
|
|
|
|
17,669
|
|
|
|
82,270
|
|
|
|
52,310
|
|
Selling, general and administrative
|
|
|
|
95,646
|
|
|
|
64,462
|
|
|
|
351,993
|
|
|
|
202,040
|
|
Goodwill impairment
|
|
|
|
102,470
|
|
|
|
-
|
|
|
|
102,470
|
|
|
|
-
|
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
(24,862
|
)
|
|
|
(853
|
)
|
|
|
(26,150
|
)
|
|
|
754
|
|
|
|
|
|
|
196,443
|
|
|
|
81,278
|
|
|
|
510,583
|
|
|
|
255,104
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
|
|
(91,259
|
)
|
|
|
(3,476
|
)
|
|
|
(148,189
|
)
|
|
|
(28,931
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Financial expense
|
|
|
|
(4,145
|
)
|
|
|
(650
|
)
|
|
|
(6,529
|
)
|
|
|
(450
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
|
(95,404
|
)
|
|
|
(4,126
|
)
|
|
|
(154,718
|
)
|
|
|
(29,381
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
(3,370
|
)
|
|
|
(2,137
|
)
|
|
|
(35,248
|
)
|
|
|
(2,474
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
(92,034
|
)
|
|
|
(1,989
|
)
|
|
|
(119,470
|
)
|
|
|
(26,907
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to non-controlling interest
|
|
|
|
(25
|
)
|
|
|
-
|
|
|
|
(50
|
)
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Stratasys Ltd.
|
|
|
$
|
(92,009
|
)
|
|
$
|
(1,989
|
)
|
|
$
|
(119,420
|
)
|
|
$
|
(26,954
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ordinary share attributable to Stratasys Ltd.
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(1.81
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(2.39
|
)
|
|
$
|
(0.64
|
)
|
Diluted
|
|
|
|
|
(1.81
|
)
|
|
|
(0.07
|
)
|
|
|
(2.39
|
)
|
|
|
(0.68
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
50,912
|
|
|
|
48,955
|
|
|
|
50,019
|
|
|
|
42,079
|
|
Diluted
|
|
|
|
|
50,912
|
|
|
|
49,036
|
|
|
|
50,019
|
|
|
|
42,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
Reconciliation of GAAP to Non-GAAP Results of Operations
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2014
|
|
Three Months Ended December 31, 2013
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
|
|
(unaudited)
|
|
Adjustments*
|
(unaudited)
|
|
(unaudited)
|
|
Adjustments*
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
$
|
168,595
|
|
|
$
|
-
|
|
|
$
|
168,595
|
|
|
$
|
134,943
|
|
|
$
|
668
|
|
|
$
|
135,611
|
|
Services
|
|
|
|
|
48,517
|
|
|
|
-
|
|
|
|
48,517
|
|
|
|
20,142
|
|
|
|
-
|
|
|
|
20,142
|
|
|
|
|
|
|
217,112
|
|
|
|
-
|
|
|
|
217,112
|
|
|
|
155,085
|
|
|
|
668
|
|
|
|
155,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
82,985
|
|
|
|
(14,490
|
)
|
|
|
68,495
|
|
|
|
65,088
|
|
|
|
(14,765
|
)
|
|
|
50,323
|
|
Services
|
|
|
|
|
28,943
|
|
|
|
(1,915
|
)
|
|
|
27,028
|
|
|
|
12,195
|
|
|
|
(495
|
)
|
|
|
11,700
|
|
|
|
|
|
|
111,928
|
|
|
|
(16,405
|
)
|
|
|
95,523
|
|
|
|
77,283
|
|
|
|
(15,260
|
)
|
|
|
62,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
105,184
|
|
|
|
16,405
|
|
|
|
121,589
|
|
|
|
77,802
|
|
|
|
15,928
|
|
|
|
93,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
|
23,189
|
|
|
|
(1,822
|
)
|
|
|
21,367
|
|
|
|
17,669
|
|
|
|
(2,207
|
)
|
|
|
15,462
|
|
Selling, general and administrative
|
|
|
|
95,646
|
|
|
|
(20,368
|
)
|
|
|
75,278
|
|
|
|
64,462
|
|
|
|
(17,633
|
)
|
|
|
46,829
|
|
Goodwill impairment
|
|
|
|
102,470
|
|
|
|
(102,470
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
(24,862
|
)
|
|
|
24,862
|
|
|
|
-
|
|
|
|
(853
|
)
|
|
|
853
|
|
|
|
-
|
|
|
|
|
|
|
196,443
|
|
|
|
(99,798
|
)
|
|
|
96,645
|
|
|
|
81,278
|
|
|
|
(18,987
|
)
|
|
|
62,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(91,259
|
)
|
|
|
116,203
|
|
|
|
24,944
|
|
|
|
(3,476
|
)
|
|
|
34,915
|
|
|
|
31,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expense
|
|
|
|
(4,145
|
)
|
|
|
-
|
|
|
|
(4,145
|
)
|
|
|
(650
|
)
|
|
|
-
|
|
|
|
(650
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(95,404
|
)
|
|
|
116,203
|
|
|
|
20,799
|
|
|
|
(4,126
|
)
|
|
|
34,915
|
|
|
|
30,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
|
(3,370
|
)
|
|
|
(750
|
)
|
|
|
(4,120
|
)
|
|
|
(2,137
|
)
|
|
|
7,133
|
|
|
|
4,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
(92,034
|
)
|
|
|
116,953
|
|
|
|
24,919
|
|
|
|
(1,989
|
)
|
|
|
27,782
|
|
|
|
25,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest
|
|
|
|
(25
|
)
|
|
|
-
|
|
|
|
(25
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
|
$
|
(92,009
|
)
|
|
$
|
116,953
|
|
|
$
|
24,944
|
|
|
$
|
(1,989
|
)
|
|
$
|
27,782
|
|
|
$
|
25,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(1.81
|
)
|
|
|
|
$
|
0.49
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
0.53
|
|
Diluted
|
|
|
|
|
(1.81
|
)
|
|
|
|
|
0.48
|
|
|
|
(0.07
|
)
|
|
|
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
50,912
|
|
|
|
|
|
50,912
|
|
|
|
48,955
|
|
|
|
|
|
48,964
|
|
Diluted
|
|
|
|
|
50,912
|
|
|
|
|
|
52,491
|
|
|
|
49,036
|
|
|
|
|
|
51,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2014
|
|
Twelve Months Ended December 31, 2013
|
|
|
|
|
GAAP
|
|
Adjustments*
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments*
|
|
Non-GAAP
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
$ 612,138
|
|
$ 235
|
|
$ 612,373
|
|
$ 414,853
|
|
$ 2,316
|
|
$ 417,169
|
Services
|
|
|
|
137,991
|
|
-
|
|
137,991
|
|
69,550
|
|
-
|
|
69,550
|
|
|
|
|
750,129
|
|
235
|
|
750,364
|
|
484,403
|
|
2,316
|
|
486,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
302,838
|
|
(69,717)
|
|
233,121
|
|
213,427
|
|
(58,826)
|
|
154,601
|
Services
|
|
|
|
84,897
|
|
(6,925)
|
|
77,972
|
|
44,803
|
|
(1,575)
|
|
43,228
|
|
|
|
|
387,735
|
|
(76,642)
|
|
311,093
|
|
258,230
|
|
(60,401)
|
|
197,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
362,394
|
|
76,877
|
|
439,271
|
|
226,173
|
|
62,717
|
|
288,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
82,270
|
|
(8,813)
|
|
73,457
|
|
52,310
|
|
(5,490)
|
|
46,820
|
Selling, general and administrative
|
|
|
351,993
|
|
(94,442)
|
|
257,551
|
|
202,040
|
|
(57,652)
|
|
144,388
|
Goodwill impairment
|
|
|
102,470
|
|
(102,470)
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
(26,150)
|
|
26,150
|
|
-
|
|
754
|
|
(754)
|
|
-
|
|
|
|
|
510,583
|
|
(179,575)
|
|
331,008
|
|
255,104
|
|
(63,896)
|
|
191,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(148,189)
|
|
256,452
|
|
108,263
|
|
(28,931)
|
|
126,613
|
|
97,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expense
|
|
|
(6,529)
|
|
-
|
|
(6,529)
|
|
(450)
|
|
-
|
|
(450)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(154,718)
|
|
256,452
|
|
101,734
|
|
(29,381)
|
|
126,613
|
|
97,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
(35,248)
|
|
33,403
|
|
(1,845)
|
|
(2,474)
|
|
17,575
|
|
15,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
(119,470)
|
|
223,049
|
|
103,579
|
|
(26,907)
|
|
109,038
|
|
82,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to non-controlling interest
|
|
|
(50)
|
|
-
|
|
(50)
|
|
47
|
|
125
|
|
172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
|
$ (119,420)
|
|
$ 223,049
|
|
$ 103,629
|
|
$ (26,954)
|
|
$ 108,913
|
|
$ 81,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$ (2.39)
|
|
|
|
$ 2.07
|
|
$ (0.64)
|
|
|
|
$ 1.95
|
Diluted
|
|
|
|
(2.39)
|
|
|
|
2.00
|
|
(0.68)
|
|
|
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
50,019
|
|
|
|
50,019
|
|
42,079
|
|
|
|
42,079
|
Diluted
|
|
|
|
50,019
|
|
|
|
51,805
|
|
42,099
|
|
|
|
44,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31,
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Net sales, products
|
|
|
|
|
|
|
|
|
|
Deferred revenue step-up
|
|
|
$
|
-
|
|
|
$
|
668
|
|
|
$
|
235
|
|
|
$
|
2,316
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, products
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(14,654
|
)
|
|
|
(14,233
|
)
|
|
|
(56,235
|
)
|
|
|
(57,027
|
)
|
Other intangible assets impairment
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,636
|
)
|
|
|
-
|
|
Non-cash stock-based compensation expense
|
|
|
|
164
|
|
|
|
(496
|
)
|
|
|
(1,846
|
)
|
|
|
(1,535
|
)
|
Merger and acquisition related expense
|
|
|
|
-
|
|
|
|
(36
|
)
|
|
|
-
|
|
|
|
(264
|
)
|
|
|
|
|
|
(14,490
|
)
|
|
|
(14,765
|
)
|
|
|
(69,717
|
)
|
|
|
(58,826
|
)
|
Cost of sales, services
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
537
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-cash stock-based compensation expense
|
|
|
|
(1,430
|
)
|
|
|
(424
|
)
|
|
|
(2,647
|
)
|
|
|
(1,445
|
)
|
Merger and acquisition related expense
|
|
|
|
(1,022
|
)
|
|
|
(71
|
)
|
|
|
(4,278
|
)
|
|
|
(130
|
)
|
|
|
|
|
|
(1,915
|
)
|
|
|
(495
|
)
|
|
|
(6,925
|
)
|
|
|
(1,575
|
)
|
Research and development, net
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
(1,942
|
)
|
|
|
(925
|
)
|
|
|
(4,862
|
)
|
|
|
(3,491
|
)
|
Other intangible assets impairment
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,000
|
)
|
|
|
-
|
|
Merger and acquisition related expense
|
|
|
|
120
|
|
|
|
(1,282
|
)
|
|
|
(951
|
)
|
|
|
(1,999
|
)
|
|
|
|
|
|
(1,822
|
)
|
|
|
(2,207
|
)
|
|
|
(8,813
|
)
|
|
|
(5,490
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization
|
|
|
|
(7,607
|
)
|
|
|
(5,319
|
)
|
|
|
(24,952
|
)
|
|
|
(17,066
|
)
|
Non-cash stock-based compensation expense
|
|
|
|
(5,589
|
)
|
|
|
(4,954
|
)
|
|
|
(20,852
|
)
|
|
|
(17,791
|
)
|
Merger and acquisition related expense
|
|
|
|
(7,172
|
)
|
|
|
(7,360
|
)
|
|
|
(48,638
|
)
|
|
|
(22,795
|
)
|
|
|
|
|
|
(20,368
|
)
|
|
|
(17,633
|
)
|
|
|
(94,442
|
)
|
|
|
(57,652
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
|
|
|
|
(102,470
|
)
|
|
|
-
|
|
|
|
(102,470
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
|
|
|
|
|
|
Change in the fair value of obligations in connection with
acquisitions
|
|
|
|
24,862
|
|
|
|
853
|
|
|
|
26,150
|
|
|
|
(754
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
Tax expense related to non-GAAP adjustments
|
|
|
|
(750
|
)
|
|
|
7,133
|
|
|
|
33,403
|
|
|
|
17,575
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense attributable to
non-controlling interest
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
116,953
|
|
|
$
|
27,782
|
|
|
$
|
223,049
|
|
|
$
|
108,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance
|
Fiscal Year 2015
|
(in millions, except per share data)
|
|
|
|
|
|
|
GAAP net loss
|
|
|
|
($23) to ($10)
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
$32 to $35
|
|
Intangible assets amortization expense
|
|
|
$85
|
|
Merger related expense
|
|
|
$41 to $43
|
|
Tax expense related to Non-GAAP adjustments
|
|
|
($30) to ($31)
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
|
$109 to $118
|
|
|
|
|
|
|
GAAP loss per share
|
|
|
|
($0.45) to ($0.20)
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share
|
|
|
$2.07 to $2.24
|
|
|
|
|
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