Stratasys (SSYS) Misses Q1 EPS by 14c, Revenues Miss

Stratasys (NASDAQ: SSYS) reported Q1 EPS of ($0.19), $0.14 worse than the analyst estimate of ($0.05). Revenue for the quarter came in at $132.91 million versus the consensus estimate of $136.53 million.

Q1 2020 Financial Results Summary:

Revenue for the first quarter of 2020 was $132.9 million, compared to $155.3 million for the same period last year. The 14.4% reduction was driven primarily by the adverse impact of COVID-19 on the company’s customers throughout the industries into which the company sells its products and services.

• GAAP gross margin was 45.0% for the quarter, compared to 49.2% for the same period last year.
• Non-GAAP gross margin was 48.4% for the quarter, compared to 52.0% for the same period last year.
  • Gross margin decline is due primarily to the lower proportion of hardware and consumables out of the total revenue mix due to the COVID-19 crisis, not to discounting or material ASP reductions. The company strongly believes that gross margins will return to their recent levels as the economy recovers.
  • GAAP operating loss for the quarter was $19.9 million, compared to an operating loss of $3.3 million for the same period last year.
• Non-GAAP operating loss for the quarter was $8.4 million, compared to non-GAAP operating income of $6.8 million for the same period last year.
• Non-GAAP EBITDA was ($4.0) million for the quarter, compared to $15.8 million for the same period last year.
• GAAP net loss for the quarter was $21.7 million, or ($0.40) per diluted share, compared to a net loss of $2.3 million, or ($0.04) per diluted share, for the same period last year.
• Non-GAAP net loss for the quarter was $10.6 million, or ($0.19) per diluted share, compared to net income of $5.7 million, or $0.10 per diluted share, for the same period last year.
• The Company generated $11.3 million of cash from operations during the first quarter and ended the period with $325.5 million in cash, cash equivalents and short-term deposits. The Company has no debt.

“With over 30 years of experience leading the 3D Printing industry that we helped found, Stratasys was well positioned to mobilize what we believe is the largest additive manufacturing network in the world, in order to assist in the fight against COVID-19,” said Yoav Zeif, Chief Executive Officer of Stratasys. “We leveraged our application expertise, our channel and partner network and our corporate-wide resources to help get a variety of printed parts to the global medical community. We are well-prepared to manage the downturn with a strong balance sheet and focus on cost control and cash generation. We have over $325 million in cash and equivalents and no debt. Our engagement level with our customers remains high and the demand for our systems is strong. It’s clear that this crisis has helped generate significant awareness that 3D printing is becoming essential for accelerating and improving design, speeding up time to market and production, and creating less dependent and more resilient global supply chains, including localized digital inventory and distributed manufacturing.”

For earnings history and earnings-related data on Stratasys (SSYS) click here.

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