Among the industry shake-ups in 2016 was the replacement of Stratasys CEO David Reis with Ilan Levin, a member of the board and executive committee of Stratasys. More than a year has passed since the move, giving the company a year’s worth of perspective on its finances. So far, the picture has not changed dramatically for Stratasys, as the company’s recent Q2 2017 report indicates.
Stratasys posted revenue of $170.0 million for the quarter, an increase from $163.2 million for the first quarter and down somewhat from $172.1 million for the same quarter last year. Stratasys also reported a net loss of $6.1 million. Earnings per share, however, exceeded the forecasts of $0.10 with $0.17. As of this writing, Stratasys stock has fallen 0.76 percent.
Among the quarter’s developments include a 1.35 percent increase in service revenues of $49 million and a 2.21 percent drop in products revenue of $2.74 million. This trend is similar to what 3D Systems management reported in its own earnings call and, like 3D Systems, Stratasys blamed the drop in product sales on performance in the Asia-Pacific region.
Stratasys CEO Levin is hopeful, however. This year, the company launched the new F123 series, a professional line of fused deposition modeling 3D printers designed for the office. According to the earnings call, the company has sold 1,000 machines since they were released in February, claiming that most of these orders were from new customers. “[T]he rapid prototyping market is—in terms of 3D printing in general—by far more mature than some of the other end-use parts or tooling applications. And so, the pricing dynamics there are different,” Levin said.
About interesting developments within the company, the executives on the call mentioned both Stratasys’ investment in Desktop Metal and the Infinite Build Demonstrator, recently named the H2000 system. In regards to Desktop Metal, Stratasys is eying ways that the two firms can partner together. As for the H2000, Levin implied that the company hoped to deliver systems to customers late this year without commenting more specifically on timing.
“With respect to perhaps the Infinite Build, we're working well with the customers that we've identified,” Levin said. “We've actually put forth some recent efforts to increase the number of potential customers and collaborators that we work with, and I think that's going very well. And we'll leave it at that. I think the interest is only getting—is only gaining in momentum.”
Stratasys provided revenue guidance of between $645 to $680 million, GAAP net loss guidance of $53 to $39 million, and non-GAAP net income guidance of $10 to $20 million. A complete chart of the financial results is available here.