3D printing giant Stratasys released their second quarter results this past week and it seems things are improving.
The company is still reporting a GAAP loss for the quarter, although the loss is less than in the same quarter last year. In fact, all of their financial statistics are somewhat improved in this quarter, which bodes well for the company.
With USD$172.1M in revenue for the quarter, the company forecasts a total of USD$700-730M for the year 2016 by the time December rolls around. However, they are also predicting an overall GAPP net loss of around USD$67-84M for the year, too.
However, their margins are increasing and they continue to spend a significant amount on research and development (USD$24.4M!)
In spite of the introduction of their amazing new J750 full color 3D printer, the company, as are others in the industry, suffering from the HP Effect.
HP has been developing their own industrial 3D printer to compete with Stratasys, 3D Systems and others and is to release it later this year. Because of HP’s very public exhibitions of their new machine, buyers have been holding back on what would have been normal renewals with Stratasys, 3D Systems or other incumbent 3D printing companies. This has created a challenging situation for existing players, as the typical buying habits of their customer base have been jiggled by HP’s entry.
Nevertheless, Stratasys (and 3D Systems for that matter) have huge war chests to withstand this temporary effect. I expect Stratasys and 3D Systems to develop new products and services to counter HP’s entry and re-energize their revenue streams.