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Stratasys releases monetary outcomes for FY and This autumn 2019, experiences weaknesses in Europe and Asia

Stratasys releases

3D printer OEM Stratasys (NASDAQ: SSYS) has printed its monetary accounts for the fourth quarter and full 12 months ending December 31, 2019. 

The corporate’s full 12 months income was reported at $636.1 million, with a internet lack of $11.1 million. Comparative figures for 2018 have been $663.2 million and a lack of $11.2 million respectively. The income outcomes are available under the monetary steering of between $640 million to $655 million, up to date by Stratasys in Q3 2019 

Fourth quarter income was reported at $160.2 million for 2019, in comparison with $177.1 million for a similar interval in 2018. Stratasys used $three.Four million of money from operations through the fourth quarter as in comparison with $18.7 million of money generated within the fourth quarter final 12 months. The corporate ended the interval with $321.eight million in money, money equivalents and short-term deposits, in comparison with $393.2 million for the top of 2018.

The decline in income, significantly throughout the firm’s Merchandise division, was attributed by Stratasys CFO Lilach Payorski to regional weaknesses in Europe and Asia, in addition to declines in legacy product strains. Nevertheless, that is anticipated to be offset by new the corporate’s new merchandise for 2020: “The lower within the interval was pushed primarily by regional weak point in Europe and Asia, coupled with some decline in supplies related to our legacy platforms, which we consider might be offset over time by sturdy progress in supplies demand that can come from our new merchandise, in addition to from techniques that we now have positioned over the previous few years.” 

“Our system income was negatively impacted primarily by continued macroeconomic weak point in Europe and Asia, in addition to declines in sure legacy product strains that we anticipate might be greater than offset by our new product introductions.” 

A transparent and colourful pattern from the brand new Stratasys J850. Photograph through Stratasys

Stratasys Merchandise and Providers

Stratasys’ income is reported inside two divisions: Merchandise and Providers. Every year, the Merchandise division, which includes 3D printers and supplies, accounts for the biggest share of general income. In This autumn 2019, Stratasys Merchandise generated $109 million in income, in comparison with $124.5 million for This autumn 2018, representing a 12.5 % lower. For the total 12 months, Merchandise reported $430.7 million in 2019, in comparison with $456.5 million in 2018, a lower of 5.6 %.

Throughout the Merchandise income, consumables income for This autumn 2019 decreased by 2.9 % in comparison with the identical interval final 12 months. Income generated from 3D printers in This autumn 2019 decreased 20.6 % in comparison with the identical interval final 12 months, whereas for the total 12 months it declined by 10.eight %.

Income
This autumn 2019
This autumn 2018
Variance $ thousands and thousands
%

Merchandise
108,968
124,537
-15,569
-12.5%

Providers
51,189
52,582
-1,393
-2.6%

Whole
160,157
177,119
-16,962
-9.6%

Stratasys’ Providers division pertains to the corporate’s on demand manufacturing and consultancy choices. For the total 12 months 2019, Providers reported a income of $205.three million, the place in 2018 it was $206.7 million. For This autumn 2019, Providers generated $51.2 million in income, 2.6 % lower than the This autumn 2018 determine, which was $52.6 million.

Income
FY2019
FY2018
Variance $ thousands and thousands
%

Merchandise
430,746
456,504
-25,758
-5.6%

Providers
205,334
206,733
-1,399
-Zero.7%

Whole
636,080
663,237
-27,157
-Four.1%

For the fiscal 12 months ending December 31, 2020, Stratasys has offered a income steering of $620 million to $680 million. The lengthy vary of the steering has been issued resulting from ongoing international industrial macroeconomic points, and the uncertainty across the potential affect of the coronavirus. 

Commenting on what’s subsequent for the corporate, Yoav Zeif, Chief Govt Officer of Stratasys, explains:  “Beginning within the again half of this 12 months we anticipate to introduce our subsequent part of progress with a notable step-change in our portfolio as we start to launch a sequence of recent merchandise for each manufacturing and design prototyping options. I’m extraordinarily optimistic concerning the outlook of the enterprise, and I consider that there’s great potential to drive vital near-term and long-term worth for all of our stakeholders.”

What’s subsequent for Stratasys?

Stratasys launched plenty of merchandise all through 2019, which have been anticipated to drive and speed up progress as the corporate entered 2020. The corporate launched two 3D printers eventually 12 months’s AMUG convention, which included the F120 system, the most recent addition to its F123 sequence of 3D printers. Stratasys additionally introduced its entry into SLA with the launch of the V650 3D printer as properly. Then, in direction of the again finish of 2019, the corporate launched two extra 3D printers. It launched a model of its J750 3D printer devoted to the medical business, made to be used by healthcare professionals. In the identical month, Stratasys additionally launched the successor to the J750 – the J850 PolyJet 3D printer, an improve on the earlier system, geared up with full-color 3D printing capabilities.  

The V650 Flex. Photo via StratasysThe V650 Flex. Photograph through Stratasys

Explaining why these product releases weren’t as impactful as Stratasys would have hoped, Yonah Lloyd, Vice President of Investor Relations, said: “So actually there was an affect of the extra international macroeconomic scenario in with the ability to extra efficiently execute on the 2019 merchandise […] and generally launch timings get pushed out to guarantee that we’re placing the most effective product out into the market.”

When questioned on the weak point of This autumn 2019 through the name, Payorski defined that “[Stratasys] skilled a big weak point in Europe and in addition to Asia. And particularly in these key verticals that we function possibly the auto and components enterprise, there are a number of indicators of a wider distinction. For instance, the European business on the whole is battling 12 straight months of contraction in manufacturing.”  Lloyd additionally added that the corporate expects a return to progress: “We’re properly positioned to return to progress when macro situations enhance. A reminder that we now have a really excessive stage of engagement and curiosity throughout all sectors. The merchandise present distinctive worth. These are going to be important merchandise to the automotive business going ahead, basic manufacturing going ahead.”

The nominations for the 2020 3D Printing Business Awards are actually open. Who do you assume ought to make the shortlists for this 12 months’s present? Have your say now. 

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Featured picture exhibits Pantone colour palette for Stratasys PolyJet printers. Picture through Stratasys.

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