Company reports $163.2 million in revenue with an increase in recurring revenues

GAAP net loss of $13.9 million, or ($0.26) per diluted share, and non-GAAP net income of $2.4 million, or $0.05 per diluted share.

Generated $25.4 million of cash from operations during the quarter

MINNEAPOLIS & REHOVOT, Israel — (BUSINESS WIRE) — May 16, 2017 — Stratasys Ltd. (Nasdaq: SSYS), the 3D printing and additive manufacturing solutions company, announced financial results for the first quarter of 2017.

Q1-2017 Financial Results Summary:

Revenue for the first quarter of 2017 was $163.2 million, compared to $167.9 million for the same period last year with consumable revenue increasing by 7% for the same period.

• GAAP gross margin was 47.1% for the quarter, compared to a GAAP gross margin of 48.3% for the same period last year.
• Non-GAAP gross margin was 51.2% for the quarter, compared to 55.1% for the same period last year.
• GAAP operating loss for the quarter was $12.6 million, compared to a loss of $21.1 million for the same period last year.
• Non-GAAP operating income for the quarter was $4.0 million, unchanged compared to non-GAAP operating income for the same period last year.
• GAAP net loss for the quarter was $13.9 million, or ($0.26) per diluted share, compared to a loss of $23.1 million, or ($0.44) per diluted share, for the same period last year.
• Non-GAAP net income for the quarter was $2.4 million, or $0.05 per diluted share, compared to Non-GAAP net income of $0.6 million, or $0.01 per diluted share, reported for the same period last year.
• The Company generated $25.4 million in cash from operations during the first quarter and ended the period with $297.2 million in cash and cash equivalents.
• Net R&D expenses for the quarter amounted to $24.6 million, representing 15.1% of net sales.

“We remain encouraged by our performance within our key vertical markets during the first quarter, driven by our initiatives to drive customer engagement,” said Ilan Levin, Chief Executive Officer of Stratasys. “In addition, we believe that strong utilization of our installed base of systems was demonstrated by steady growth in consumables and customer support revenue during the period, while improved focus resulted in reductions in our operating expenses.”

Recent Business Highlights:

• Demonstrated continued traction in our strategic focus on customer use cases and deepening collaboration with many industry leaders:
  • Siemens Mobility announced the manufacture of customized production parts that include housing covers for the couplers on the front of trams, utilizing Stratasys FDM technology for German transport services provider Stadtwerke Ulm/Neu Ulm (SWU) Verkehr GmbH, which resulted in a significant reduction in lead times and tooling costs.
  • McLaren Racing expanded its production of final race-ready parts and manufacturing tools for the new McLaren MCL32 Formula 1 race car, utilizing Stratasys FDM and PolyJet 3D Printing Solutions.
  • Announced a strategic agreement with SIA Engineering Company (SIAEC), a major provider of aircraft maintenance, repair, and overhaul services in the Asia-Pacific region, to help accelerate the adoption of 3D printed production parts for commercial aviation by establishing a Singapore-based Additive Manufacturing Service Centre that offers design, engineering, certification support, and part production to SIAEC’s well-established network of partners and customers.
  • Showcased the use of Stratasys PolyJet 3D printing technology, by Queen Elizabeth Hospital in the United Kingdom, for the construction of advanced maxillofacial cutting guides and anatomical models.
• Enhanced customer-centric solution offerings with launch of the Stratasys Expert Services Group in North America, to help manufacturers build their additive manufacturing strategy and workflow to recognize the benefits of 3D printing for improved production processes.
• Announced the Stratasys Continuous Build 3D Demonstrator, a new additive manufacturing platform demonstrating low volume production and mass customization, featuring a modular multi-cell design and cloud-based architecture. The new technology demonstrator targets applications that include education Rapid Prototyping labs as well as volume manufacturing environments that can benefit from part production without tooling and from zero-inventory supply chains.
• Announced a strategic investment in LPW Technologies, a developer of metal powders and metal powder management systems; and entered into a strategic partnership with Desktop Metal, a manufacturer of metal 3D printing systems, that will enable leveraging Stratasys’ distribution channels for the sale of their innovative solutions.