Fourth Quarter Revenue Increased 2% to $179.3 million compared to same period last year

Fourth Quarter GAAP net loss of $10.0 million, or ($0.19) per diluted share, and non-GAAP net income of $8.4 million, or $0.16 per diluted share

Company releases full year 2018 earnings guidance

Announces new internally-developed metal additive manufacturing platform

MINNEAPOLIS & REHOVOT, Israel — (BUSINESS WIRE) — February 28, 2018 — Stratasys Ltd. (NASDAQ: SSYS), a global leader in applied additive technology solutions, announced financial results for the fourth quarter and full year 2017.

Q4 2017 Financial Results Summary:

Revenue for the fourth quarter of 2017 was $179.3 million, compared to $175.3 million for the same period last year.

• GAAP gross margin was 48.7% for the quarter, compared to a GAAP gross margin of 47.3% for the same period last year.
• Non-GAAP gross margin was 52.5% for the quarter, compared to 53.6% for the same period last year.
• GAAP operating loss for the quarter was $6.0 million, compared to a loss of $29.2 million for the same period last year.
• Non-GAAP operating income for the quarter was $13.5 million, compared to $11.6 million for the same period last year.
• GAAP net loss for the quarter was $10.0 million, or ($0.19) per diluted share, compared to a loss of $14.8 million, or ($0.30) per diluted share, for the same period last year.
• Non-GAAP net income for the quarter was $8.4 million, or $0.16 per diluted share, compared to Non-GAAP net income of $7.8 million, or $0.15 per diluted share, reported for the same period last year.
• Net R&D expenses for the quarter amounted to $26.6 million, representing 14.8% of net revenues.
• The Company generated $21.0 million in cash from operations during the fourth quarter and ended the period with $328.8 million in cash and cash equivalents.

Fiscal 2017 Financial Results Summary:

• Revenue for fiscal 2017 was $668.4 million compared to $672.5 million for fiscal 2016.
• GAAP operating loss for fiscal 2017 was $30.5 million, compared to a loss of $86.7 million for fiscal 2016.
• Non-GAAP operating income was $36.7 million, compared to $29.0 million for fiscal 2016
• GAAP net loss for fiscal 2017 was $40.0 million, or ($0.75) per diluted share, compared to a loss of $77.2 million, or ($1.48) per diluted share, for fiscal 2016.
• Non-GAAP net income for fiscal 2017 was $24.2 million, or $0.45 per diluted share, compared to non-GAAP net income of $14.8 million, or $0.28 per diluted share, reported for fiscal 2016.
• The Company generated $61.9 million in cash from operations in fiscal 2017.

“Our fourth quarter results reflect the momentum that we built throughout the year, which we attribute to the positive market reaction to several new product introductions, including our F123 Series launched in February, 2017 and the more recently commercialized H2000 and J700 Dental Solutions, as well as investments in specific go-to-market initiatives for our target verticals of aerospace, automotive, and healthcare,” said Ilan Levin, Chief Executive Officer of Stratasys. “Our improved profitability and healthy cash generation in the quarter demonstrates the success of our alignment of resources to support our strategic roadmap.”

New Metal Technology

For nearly 30 years Stratasys has been pioneering the development and adoption of 3D printing and additive manufacturing technologies, including the precise, repeatable, and reliable FDM and PolyJet 3D printing platforms.

Building on its track record of innovation and leadership, Stratasys is today revealing the development of a new additive manufacturing process, designed from inception to address short-run metal manufacturing.

The innovative Stratasys platform was developed internally over the past several years, incorporating the Company’s proprietary jetting technology. The platform was designed from inception to provide the values of additive manufacturing for short-run production, while overcoming material limitations of currently available metal-based additive manufacturing systems. With this new technology, Stratasys believes it will offer customers a new ability to short-run manufacture metal parts made with commonly used powder metallurgy, starting with aluminum, at an economically competitive cost-per-part and throughput, with easy to implement post-processing and high part quality.