[ACCESSWIRE]
Upcoming AWS Coverage on 3D Systems Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 24, 2017 / Active Wall St. announces its post-earnings coverage on Stratasys Ltd. (NASDAQ: SSYS). The Company disclosed its financial results for the fourth quarter fiscal 2017 (Q4 FY16) and full year fiscal 2017 (FY16) on March 09, 2017. The Minneapolis & Rehovot, Israel-based Company's quarterly revenues increased on a year-over-year basis, outperforming market consensus estimates. Register with us now for your free membership at:
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One of Stratasys' competitors within the Computer Peripherals space, 3D Systems Corp. (NYSE: DDD), reported on February 28, 2017, its fourth quarter and full year 2016 financial results. AWS will be initiating a research report on 3D Systems in the coming days.
Today, AWS is promoting its earnings coverage on SSYS; touching on DDD. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
Stratasys reported total revenue of $175.30 million in Q4 FY16, which came in marginally above the $173.36 million recorded in Q4 FY15. Total revenue numbers for Q4 FY16 topped market forecasts of $169.8 million. Meanwhile, the Company's consumable revenues were up 11% y-o-y in the reported quarter.
The 3D printers maker's GAAP net loss attributable to Stratasys came in at $14.76 million, or $0.30 loss per diluted share, in Q4 FY16 compared to GAAP net loss attributable to Stratasys of $232.34 million, or $4.46 loss per diluted share, in Q4 FY15. Meanwhile, the Company reported non-GAAP net income attributable to Stratasys of $7.83 million, or $0.15 per diluted share, in Q4 FY16 versus non-GAAP net loss attributable to Stratasys of $0.70 million, or $0.01 loss per diluted share, in Q4 FY15. Wall Street had expected the Company to report non-GAAP net income of $0.05 per diluted share.
In FY16, Stratasys' total revenue came in at $672.46 million compared to $696.00 million in the previous year. The Company reported GAAP net loss attributable to Stratasys of $77.22 million, or $1.48 loss per diluted share, in FY16 versus GAAP net loss attributable to Stratasys of $1.37 billion, or $26.64 per diluted share, in FY15. Furthermore, the Company's non-GAAP net income attributable to Stratasys during FY16 was $14.77 million, or $0.28 per diluted share, compared to $9.95 million, or $0.19 per diluted share, in FY15.
Operating Metrics
In Q4 FY16, the Company's GAAP gross profit improved to $82.92 million, or 47.3% of revenue, from $53.07 million, or 30.6% of revenue, in the year ago same period. Moreover, the Company's non-GAAP gross profit increased to $94.02 million, or 53.6% of revenue in Q4 FY16 from $83.38 million, or 48.1% of revenue, in the year ago comparable period. In Q4 FY16, the Company spent $24.30 million on R&D expenses compared to $31.92 million in Q4 FY15.
Stratasys' GAAP operating loss narrowed in Q4 FY16 to $29.17 million from $187.81 million in the prior year's corresponding period. Furthermore, the Company reported non-GAAP operating income of $11.57 million in Q4 FY16 against non-GAAP operating loss of $8.88 million in Q4 FY15.
Segment Performance
During Q4 FY16, products revenue increased 2% to $126.56 million from $124.32 million in the previous year's comparable quarter. The segment's GAAP gross margin improved to 51.0% in Q4 FY16 from 30.2% in the prior year's same quarter. Additionally, the segment's non-GAAP gross margin rose to 59.5% in Q4 FY16 from 52.8% in Q4 FY15.
Services contributed $48.75 million to total revenue in Q4 FY16 compared to $49.05 million in Q4 FY15. The segment's GAAP gross margin for Q4 FY16 was 37.6% versus $31.6% of in previous year's comparable quarter. Additionally, the segment reported non-GAAP gross margin of 38.3% in Q4 FY16 compared to 36.2% in Q4 FY15.
Cash Flow and Balance Sheet
In the quarter ended December 31, 2016, net cash provided by operating activities surged to $26.0 million from $7.7 million in Q4 FY15. As on December 31, 2016, the Company had cash and cash equivalents balance of $280.33 million compared to a balance of $257.59 million as on December 31, 2015. The Company reported long-term debt of $22.29 million in its books of accounts as on December 31, 2016, while it did not report any long-term debt in the year ago period.
Earnings Outlook
In its guidance for FY17, Stratasys' expects total revenues in the range of $645 million to $680 million. The Company anticipates FY17 non-GAAP operating margins to be between 3% and 5%. FY17 non-GAAP net income is projected to be in range of $10 million to $20 million, or $0.19 per diluted share to $0.37 per diluted share. Furthermore, the Company expects GAAP net loss of $53 million to $39 million, or a ($1.00) per diluted share to ($0.73) per diluted share, in FY17.
Stock Performance
At the close of trading session on Thursday, March 23, 2017, Stratasys' stock price climbed 1.92% to end the day at $19.15. A total volume of 568.17 thousand shares were exchanged during the session. The Company's share price has gained 15.78% on an YTD basis. The stock currently has a market cap of $1.01 billion.
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