- Revenue of $127.9 million
- GAAP net loss of $405.1 million, or ($7.35) per diluted share,
and non-GAAP net loss of $3.0 million, or ($0.05) per diluted
share; Included in the GAAP net loss was a $386.2 million ($7.01
per share) non-cash goodwill impairment charge.
- Generated $2.6 million in cash from operations - $308.2 million
net cash position with no debt
Stratasys Ltd. (NASDAQ: SSYS) announced financial results for
the third quarter of 2020.
Q3 2020 Financial Results Summary:
- Revenue for the third quarter of 2020 was $127.9 million,
compared to $157.5 million for the same period last year. The 18.8%
reduction was primarily driven 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 38.9% for the quarter, compared to 49.2%
for the same period last year. Non-GAAP gross margin was 46.8% for
the quarter, compared to 52.4% for the same period last year. GAAP
and non-GAAP gross margin improved sequentially from Q2 by 170bp
and 140bp, respectively. The company believes that gross margins
will continue to recover as and when our customers return to their
pre-COVID utilization levels.
- GAAP operating loss for the quarter was $404.3 million,
compared to GAAP operating loss of $6.0 million for the same period
last year, mainly due to the non-cash goodwill impairment charge of
$386.2 million. Non-GAAP operating loss for the quarter was $1.0
million, compared to non-GAAP operating income of $8.1 million for
the same period last year.
- GAAP net loss for the quarter was $405.1 million, or ($7.35)
per diluted share, compared to GAAP net loss of $6.9 million, or
($0.13) per diluted share, for the same period last year, mainly
due to the non-cash goodwill impairment charge of $386.2 million.
Non-GAAP net loss for the quarter was $3.0 million, or ($0.05) per
diluted share, compared to non-GAAP net income of $6.3 million, or
$0.12 per diluted share, for the same period last year.
- Non-GAAP EBITDA was $5.2 million for the quarter, compared to
$14.5 million for the same period last year. Non-GAAP EBITDA
improved sequentially from Q2 by $6.8 million.
- The Company recorded a non-cash goodwill impairment charge of
$386.2 million, or $7.01 per share, related to the Company’s FDM
and PolyJet technologies, primarily as a result of the COVID-19
impact on the Company’s business.
- The Company generated $2.6 million of cash from operations and
ended the period with $308.2 million in cash, cash equivalents and
short-term deposits. The Company has no debt.
“We were pleased to see sequential improvements in both our top
and bottom lines for this quarter, reflecting the beginning of a
potential recovery from the pandemic,” said Yoav Zeif, CEO of
Stratasys. “We are laser-focused on leading the polymer 3D printing
market by delivering the most innovative, next-gen technologies to
address the fastest-growing and most transformative manufacturing
applications, while leveraging the strongest go-to-market
infrastructure in our industry. We believe that our innovations of
today will drive competitive production advantages for the
factories of tomorrow, resulting in growth and value creation for
our customers and shareholders.”
Stratasys Ltd. Q3 2020 Conference Call Details
The Company plans to hold the conference call to discuss its
third quarter 2020 financial results on Thursday, November 12, 2020
at 8:30 a.m. (ET).
The investor conference call will be available via live webcast
on the Stratasys Website at investors.stratasys.com, or directly at
the following web address:
https://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/41658/indexl.html
To participate by telephone, the U.S. toll-free number is
877-407-0619 and the international dial-in is +1-412-902-1012.
Investors are advised to dial into the call at least ten minutes
prior to the call to register. The webcast will be available for 6
months at investors.stratasys.com, or by accessing the
above-provided web address.
Stratasys (Nasdaq: SSYS) is a global leader in additive
manufacturing or 3D printing technology and is the manufacturer of
FDM®, PolyJet™, and stereolithography 3D printers. The company’s
technologies are used to create prototypes, manufacturing tools,
and production parts for industries, including aerospace,
automotive, healthcare, consumer products and education. For more
than 30 years, Stratasys products have helped manufacturers reduce
product-development time, cost, and time-to-market, as well as
reduce or eliminate tooling costs and improve product quality. The
Stratasys 3D printing ecosystem of solutions and expertise includes
3D printers, materials, software, expert services, and on-demand
parts production.
To learn more about Stratasys, visit www.stratasys.com, the
Stratasys blog, Twitter, LinkedIn, or Facebook. Stratasys reserves
the right to utilize any of the foregoing social media platforms,
including the company's websites, to share material, non-public
information pursuant to the SEC's Regulation FD. To the extent
necessary and mandated by applicable law, Stratasys will also
include such information in its public disclosure filings.
Stratasys is a registered trademark and the Stratasys signet is
a trademark of Stratasys Ltd. and/or its subsidiaries or
affiliates. All other trademarks are the property of their
respective owners.
Cautionary Statement Regarding Forward-Looking
Statements
The statements in this press release regarding Stratasys'
strategy, and the statements regarding its projected future
financial performance, are forward-looking statements reflecting
management's current expectations and beliefs. These
forward-looking statements are based on current information that
is, by its nature, subject to rapid and even abrupt change. Due to
risks and uncertainties associated with Stratasys' business, actual
results could differ materially from those projected or implied by
these forward-looking statements. These risks and uncertainties
include, but are not limited to: the degree of our success at
introducing new or improved products and solutions that gain market
share; the degree of growth of the 3D printing market generally;
the duration of the global COVID-19 pandemic, which, if extending
for a further significant period of time, may continue to impact,
in a material adverse manner, our operations, financial position
and cash flows, and those of our customers and suppliers; the
impact of potential shifts in the prices or margins of the products
that we sell or services that we provide, including due to a shift
towards lower-margin products or services; the impact of
competition and new technologies; potential further charges against
earnings that we could be required to take due to impairment of
additional goodwill or other intangible assets; the extent of our
success at successfully consummating acquisitions or investments in
new businesses, technologies, products or services; potential
changes in our management and board of directors; global market,
political and economic conditions, and in the countries in which we
operate in particular (including risks related to the impact of
coronavirus on our operations, supply chain, liquidity, cash flow
and customer orders); costs and potential liability relating to
litigation and regulatory proceedings; risks related to
infringement of our intellectual property rights by others or
infringement of others' intellectual property rights by us; the
extent of our success at maintaining our liquidity and financing
our operations and capital needs; the impact of tax regulations on
our results of operations and financial condition; and those
additional factors referred to in Item 3.D “Key Information - Risk
Factors”, Item 4, “Information on the Company”, Item 5, “Operating
and Financial Review and Prospects,” and all other parts of our
Annual Report on Form 20-F for the year ended December 31, 2019
(the “2019 Annual Report”), which we filed with the
Securities and Exchange Commission (the “SEC”) on February
26, 2020. Readers are urged to carefully review and consider the
various disclosures made throughout our 2019 Annual Report and the
Report of Foreign Private Issuer on Form 6-K that attaches
Stratasys’ unaudited, condensed consolidated financial statements
and its review of its results of operations and financial
condition, for the quarterly period ended September 30, 2020, which
we are furnishing to the SEC on or about the date hereof, and our
other reports filed with or furnished to the SEC, which are
designed to advise interested parties of the risks and factors that
may affect our business, financial condition, results of operations
and prospects. Any guidance provided, and other forward-looking
statements made, in this press release are made as of the date
hereof, and Stratasys 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.
Use of non-GAAP financial
measures
The non-GAAP data included herein, which excludes certain items
as described below, are non-GAAP financial measures. Our management
believes that these non-GAAP financial measures are useful
information for investors and shareholders of our Company in
gauging our results of operations on an ongoing basis after (i)
excluding mergers, acquisitions and divestments related expense or
gains and restructuring-related charges or gains, and (ii)
excluding non-cash items such as stock-based compensation expenses,
acquired intangible assets amortization, including intangible
assets amortization related to equity method investments,
impairment of goodwill and long-lived assets, and the corresponding
tax effect of those items. These non-GAAP adjustments either do not
reflect actual cash outlays that impact our liquidity and our
financial condition or have a non-recurring impact on the statement
of operations, as assessed by management. These non-GAAP financial
measures are presented to permit investors to more fully understand
how management assesses our performance for internal planning and
forecasting purposes. The limitations of using these non-GAAP
financial measures as performance measures are that they provide a
view of our results of operations without including all items
indicated above during a period, which may not provide a comparable
view of our performance to other companies in our industry.
Investors and other readers should consider non-GAAP measures only
as supplements to, not as substitutes for or as superior measures
to, the measures of financial performance prepared in accordance
with GAAP. Reconciliation between results on a GAAP and non-GAAP
basis is provided in a table below.
Stratasys Ltd. Consolidated Balance Sheets
(Unaudited) (in thousands, except share data)
September 30,
December 31,
2020
2019
ASSETS Current assets Cash and
cash equivalents
$
252,906
$
293,484
Short-term deposits
$
55,300
$
28,300
Accounts receivable, net
103,693
132,558
Inventories
152,685
168,504
Prepaid expenses
7,568
6,567
Other current assets
19,209
29,659
Total current assets
591,361
659,072
Non-current assets Property, plant and equipment, net
198,521
189,706
Goodwill
-
385,658
Other intangible assets, net
65,083
87,328
Operating lease right-of-use assets
18,905
20,936
Other non-current assets
35,238
38,819
Total non-current assets
317,747
722,447
Total assets
$
909,108
$
1,381,519
LIABILITIES AND EQUITY Current
liabilities Accounts payable
$
23,478
$
35,818
Accrued expenses and other current liabilities
26,462
28,528
Accrued compensation and related benefits
28,536
34,013
Deferred revenues
47,288
52,268
Operating lease liabilities - short term
8,675
9,292
Total current liabilities
134,439
159,919
Non-current liabilities Deferred revenues - long-term
13,436
16,039
Operating lease liabilities - long term
10,600
12,445
Other non-current liabilities
33,291
35,343
Total non-current liabilities
57,327
63,827
Total liabilities
191,766
223,746
Redeemable non-controlling interests
568
622
Equity Ordinary shares, NIS 0.01 nominal value,
authorized 180,000 thousands shares; 55,112 thousands shares and
54,441 thousands shares issued and outstanding at September 30,
2020 and December 31, 2019, respectively
150
148
Additional paid-in capital
2,722,839
2,706,894
Accumulated other comprehensive loss
(9,289
)
(7,716
)
Accumulated deficit
(1,996,926
)
(1,542,175
)
Total equity
716,774
1,157,151
Total liabilities and equity
$
909,108
$
1,381,519
Stratasys Ltd. Consolidated Statements of
Operations (in thousands, except per share data)
Three Months Ended September 30, Nine Months Ended
September 30,
2020
2019
2020
2019
(unaudited) (unaudited) (unaudited)
(unaudited) Net sales Products
$
83,548
$
106,346
$
240,597
$
321,778
Services
44,344
51,114
137,825
154,145
127,892
157,460
378,422
475,923
Cost of sales Products
47,339
44,341
126,556
135,605
Services
30,784
35,710
98,491
105,285
78,123
80,051
225,047
240,890
Gross profit
49,769
77,409
153,375
235,033
Operating expenses Research and development, net
19,562
23,620
65,059
70,234
Selling, general and administrative
48,343
59,741
155,630
173,217
Goodwill impairment
386,154
-
386,154
-
454,059
83,361
606,843
243,451
Operating loss
(404,290
)
(5,952
)
(453,468
)
(8,418
)
Financial income (expense), net
(167
)
289
(847
)
2,796
Loss before income taxes
(404,457
)
(5,663
)
(454,315
)
(5,622
)
Income tax expenses (benefit)
(343
)
586
(2,250
)
3,084
Share in profits (losses) of associated companies
(952
)
(733
)
(2,740
)
495
Net Loss
(405,066
)
(6,982
)
(454,805
)
(8,211
)
Net loss attributable to non-controlling interests
(4
)
(41
)
(54
)
(152
)
Net loss attributable to Stratasys Ltd.
$
(405,062
)
$
(6,941
)
$
(454,751
)
$
(8,059
)
Net loss per ordinary share attributable to Stratasys
Ltd. Basic
$
(7.35
)
$
(0.13
)
$
(8.29
)
$
(0.15
)
Diluted
$
(7.35
)
$
(0.13
)
$
(8.29
)
$
(0.15
)
Basic
55,086
54,394
54,851
54,201
Diluted
55,086
54,394
54,851
54,201
Three Months Ended September
30,
2020
Non-GAAP
2020
2019
Non-GAAP
2019
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in
thousands (except per share amounts)
Gross profit (1)
$
49,769
$
10,036
$
59,805
$
77,409
$
5,087
$
82,496
Operating income (loss) (1,2)
(404,290
)
403,268
(1,022
)
(5,952
)
14,055
8,103
Net income (loss) attributable to Stratasys Ltd. (1,2,3)
(405,062
)
402,050
(3,012
)
(6,941
)
13,275
6,334
Net income (loss) per diluted share attributable to
Stratasys Ltd. (4)
$
(7.35
)
$
7.30
$
(0.05
)
$
(0.13
)
$
0.25
$
0.12
(1)
Acquired intangible assets amortization expense
4,065
3,916
Non-cash stock-based compensation expense
524
475
Restructuring and other related costs
191
696
Impairment charges of intangible assets
5,256
-
10,036
5,087
(2)
Acquired intangible assets amortization expense
2,162
2,016
Non-cash stock-based compensation expense
4,352
4,960
Goodwill impairment
386,154
-
Restructuring and other related costs
34
1,992
Other expenses
530
-
393,232
8,968
403,268
14,055
(3)
Corresponding tax effect
(1,296
)
(780
)
Equity method related amortization, divestments and
impairments
78
-
$
402,050
$
13,275
(4)
Weighted average number of ordinary shares outstanding-
Diluted
55,086
55,086
54,394
54,940
Nine Months Ended September
30,
2020
Non-GAAP
2020
2019
Non-GAAP
2019
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in
thousands (except per share amounts)
Gross profit (1)
$
153,375
$
24,062
$
177,437
$
235,033
$
13,780
$
248,813
Operating income (loss) (1,2)
(453,468
)
435,987
(17,481
)
(8,418
)
32,376
23,958
Net income (loss) attributable to Stratasys Ltd. (1,2,3)
(454,751
)
433,821
(20,930
)
(8,059
)
28,574
20,515
Net income (loss) per diluted share attributable to
Stratasys Ltd. (4)
$
(8.29
)
$
7.91
$
(0.38
)
$
(0.15
)
$
0.53
$
0.38
(1)
Acquired intangible assets amortization expense
12,196
11,714
Non-cash stock-based compensation expense
1,424
1,370
Restructuring and other related costs
5,187
696
Impairment charges of intangible assets
5,256
-
24,062
13,780
(2)
Acquired intangible assets amortization expense
6,430
5,688
Non-cash stock-based compensation expense
14,470
14,387
Goodwill impairment
386,154
-
Restructuring and other related costs
3,863
(1,479
)
Other expenses
1,007
-
411,925
18,596
435,987
32,376
(3)
Corresponding tax effect
(2,396
)
(2,198
)
Equity method related amortization, divestments and
impairments
230
(1,604
)
$
433,821
$
28,574
(4)
Weighted average number of ordinary shares outstanding-
Diluted
54,851
54,851
54,201
54,705
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201112005142/en/
Stratasys Investor Relations Yonah Lloyd Vice President -
Investor Relations Yonah.Lloyd@stratasys.com
Stratasys (NASDAQ:SSYS)
Historical Stock Chart
From Apr 2024 to May 2024
Stratasys (NASDAQ:SSYS)
Historical Stock Chart
From May 2023 to May 2024