Stratasys’ Non-Shocking Quarterly Results

Stratasys released their Q2 financial results for 2017 and the results were quite different from those of their competitor, 3D Systems. 

3D Systems, you may recall, delivered unpleasant financial news earlier this month, missing earnings targets and generally flat results all around. While that wasn’t quite the end of the world in an absolute sense, it was perceived badly by the investment community, who have long been expecting a big turnaround in the company after its regime change a year and a half ago. Their stock price suffered tremendously this past week, as you can see in the charge below. 

Recent closing prices of stock for 3D Systems (red) and Stratasys (blue)

Recent closing prices of stock for 3D Systems (red) and Stratasys (blue)

Note however, that Stratasys’ stock (in blue) more or less maintained its value, even after their quarterly results were released. Why is this so? Let’s take a look at what they reported. 

While their revenue in the quarter was flat (or even very slightly down) from the same quarter in the previous year, they did improve their gross margin. This means they’re making more money on the same revenue. 

They did lose USD$5M in the quarter, but that is a big improvement over the USD$17.1M loss in the same period in 2016. 

The company reports they’ve got a stash of USD$305.3M in cash and was able to manage spending 13.7% of their sales revenue (USD$23.3M) on research and development. That’s good!

So it’s not surprising some investors have bailed on 3D Systems. Did they put their money on Stratasys? Or somewhere else? We cannot know, but whatever best generates technical progress and lowered costs is a good thing. 

Via Stratasys

General Fabb

Kerry Stevenson, aka "General Fabb" has been writing Fabbaloo posts since he launched the venture in 2007, with an intention to promote and grow the incredible technology of 3D printing across the world. So far, it seems to be working!

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