Inkjet & Digital Printing

Stratasys Releases Financial Guidance for 2014

Wednesday 15. January 2014 - Fiscal 2014 revenue guidance of $660 to $680 million

Fiscal 2014 Non-GAAP net income projection of $113 to $119 million
Fiscal 2014 GAAP net income projection of $10.5 to $19.9 million
Stratasys Ltd. (NASDAQ:SSYS) today announced financial guidance for 2014.
Stratasys provided the following information regarding the company’s projected revenue and net income for the fiscal year ending December 31, 2014:
Revenue guidance of $660 to $680 million.
Non-GAAP net income of $113 to $119 million, or $2.15 to $2.25 per diluted share.
GAAP net income of $10.5 to $19.9 million, or a $0.20 to $0.38 per diluted share.
The company expects organic sales, which exclude MakerBot sales, to grow at least 25% over 2013, with additional growth coming from MakerBot, which is expected to grow at a higher rate.
“We enter the new year with positive momentum and an expectation of continued strong growth for our industry-leading products and services,” said David Reis, chief executive officer of Stratasys. “Revenue synergies continue to develop from the merger between Stratasys and Objet, which is reflected in our outlook for organic sales growth of at least 25%. In addition, the performance of MakerBot, which we acquired in August of 2013, is exceeding our expectations, and is on track to be accretive by the end of the year. We expect 2014 will be another exciting year for Stratasys and our shareholders.”
Stratasys provided the following additional information regarding the company’s performance and strategic plans for 2014:
Operating expenses are projected to expand significantly in 2014 driven by investments in sales and marketing programs to drive future market adoption, as well as by higher R&D investments to fund technology innovation and new product development.
Incremental sales and marketing investments will focus on expanding sales channels, as well as building unique go-to-market programs targeting certain market verticals and customer applications.
Non-GAAP operating margins in 2014 are projected to remain relatively consistent with levels recognized in 2013, as margin expansion in the company’s core business is offset by a full year contribution from MakerBot, which maintains lower operating margins.
Projected Non-GAAP net income is expected to be derived disproportionately from the second half of fiscal 2014, driven by the projected timing of operating expenses, as well as the projected timing and success of new product introductions and their corresponding ramp in sales.
Capital expenditures are projected at $50 to $70 million, which includes significant investments in manufacturing capacity in anticipation of future growth.
“The marketplace for 3D printing and additive manufacturing solutions continues to develop very rapidly. Stratasys is positioned to address a full spectrum of opportunities by providing solutions that help foster innovation, accelerate design processes, and transform the way things are made. In addition to actively evaluating new acquisitions, we will continue to invest aggressively in sales, marketing and R&D initiatives in 2014 to better capitalize on these opportunities and drive future growth. We look forward to executing our plan in 2014,” Reis concluded.
Non-GAAP earnings guidance excludes $64.8 million of projected amortization of intangible assets; $25.1 million to $28.2 million of share-based compensation expense; and $8.8 million to $9.8 million in non-recurring expenses related to M&A transactions.