Fiscal 2014 revenue guidance of $660 to $680 million
Fiscal 2014 Non-GAAP net income projection of $113 to $119 million
Fiscal 2014 GAAP net income projection of $10.5 to $19.9 million
MINNEAPOLIS & REHOVOT, Israel — (BUSINESS WIRE) — January 14, 2014 — Stratasys Ltd. (NASDAQ: SSYS) today announced financial guidance for 2014.
Stratasys provided the following information regarding the company’s projected revenue and net income for the fiscal year ending December 31, 2014:
- Revenue guidance of $660 to $680 million.
- Non-GAAP net income of $113 to $119 million, or $2.15 to $2.25 per diluted share.
- GAAP net income of $10.5 to $19.9 million, or a $0.20 to $0.38 per diluted share.
- The company expects organic sales, which exclude MakerBot sales, to grow at least 25% over 2013, with additional growth coming from MakerBot, which is expected to grow at a higher rate.
“We enter the new year with positive momentum and an expectation of continued strong growth for our industry-leading products and services,” said David Reis, chief executive officer of Stratasys. “Revenue synergies continue to develop from the merger between Stratasys and Objet, which is reflected in our outlook for organic sales growth of at least 25%. In addition, the performance of MakerBot, which we acquired in August of 2013, is exceeding our expectations, and is on track to be accretive by the end of the year. We expect 2014 will be another exciting year for Stratasys and our shareholders.”
Stratasys provided the following additional information regarding the company’s performance and strategic plans for 2014:
- Operating expenses are projected to expand significantly in 2014 driven by investments in sales and marketing programs to drive future market adoption, as well as by higher R&D investments to fund technology innovation and new product development.
- Incremental sales and marketing investments will focus on expanding sales channels, as well as building unique go-to-market programs targeting certain market verticals and customer applications.
- Non-GAAP operating margins in 2014 are projected to remain relatively consistent with levels recognized in 2013, as margin expansion in the company’s core business is offset by a full year contribution from MakerBot, which maintains lower operating margins.
- Projected Non-GAAP net income is expected to be derived disproportionately from the second half of fiscal 2014, driven by the projected timing of operating expenses, as well as the projected timing and success of new product introductions and their corresponding ramp in sales.
- Capital expenditures are projected at $50 to $70 million, which includes significant investments in manufacturing capacity in anticipation of future growth.
“The marketplace for 3D printing and additive manufacturing solutions continues to develop very rapidly. Stratasys is positioned to address a full spectrum of opportunities by providing solutions that help foster innovation, accelerate design processes, and transform the way things are made. In addition to actively evaluating new acquisitions, we will continue to invest aggressively in sales, marketing and R&D initiatives in 2014 to better capitalize on these opportunities and drive future growth. We look forward to executing our plan in 2014,” Reis concluded.
Non-GAAP earnings guidance excludes $64.8 million of projected amortization of intangible assets; $25.1 million to $28.2 million of share-based compensation expense; and $8.8 million to $9.8 million in non-recurring expenses related to M&A transactions.
Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of this press release. The table provides itemized detail of the non-GAAP financial measures.
Cautionary Statement Regarding Forward-Looking Statements
Certain information included or incorporated by reference in this press
may be deemed to be “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements are often characterized by the use
of forward-looking terminology such as “may,” “will,” “expect,”
“anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,”
“project” or other similar words, but are not the only way these
statements are identified. These forward-looking statements may include,
but are not limited to, statements relating to the company’s objectives,
plans and strategies, statements that contain projections of results of
operations or of financial condition (including, with respect to the
MakerBot acquisition) and all statements (other than statements of
historical facts) that address activities, events or developments that
the company intends, expects, projects, believes or anticipates will or
may occur in the future. Forward-looking statements are not guarantees
of future performance and are subject to risks and uncertainties. The
company has based these forward-looking statements on assumptions and
assessments made by its management in light of their experience and
their perception of historical trends, current conditions, expected
future developments and other factors they believe to be appropriate.
Important factors that could cause actual results, developments and
business decisions to differ materially from those anticipated in these
forward-looking statements include, among other things: the company’s
ability to efficiently and successfully integrate the operations of
Stratasys, Inc. and Objet Ltd. after their merger as well as the ability
to complete the MakerBot acquisition and to successfully put in place
and execute an effective post-merger integration plan; the overall
global economic environment; the impact of competition and new
technologies; general market, political and economic conditions in the
countries in which the company operates; projected capital expenditures
and liquidity; changes in the company’s strategy; government regulations
and approvals; changes in customers’ budgeting priorities; litigation
and regulatory proceedings; and those factors referred to under “Risk
Factors” in the prospectus and prospectus supplements included in the
company’s registration statement on Form F-3, as well as those described
under “Risk Factors”, “Information on the Company”, “Operating and
Financial Review and Prospects”, and generally in the company’s annual
report on Form 20-F for the year ended December 31, 2012, which have
been filed with the U.S. Securities and Exchange Commission and in other
documents that the company has filed or may file with the SEC. Readers
are urged to carefully review and consider the various disclosures made
in the company’s SEC reports, which are designed to advise interested
parties of the risks and factors that may affect its business, financial
condition, results of operations and prospects. Any forward-looking
statements in this press release are made as of the date hereof, and the
company 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.