As scheduled, Stratasys released their 2015 financial results, and while they’re not exactly pretty, some interesting outcomes occurred.
Investors and industry observers were expected less than stellar results from Stratasys, and I should point out it’s not just them: most other 3D printing companies are traveling through challenging territories in the past year.
So what happened? Here are their highlights:
- Revenue for fiscal 2015 was $696.0 million compared to $750.1 million for fiscal 2014.
- GAAP net loss for fiscal 2015 was $1.4 billion, or ($26.64) per diluted share, compared to a loss of $119.4 million, or ($2.39) per diluted share, for the same period last year.
So, revenue dropped by a relatively small seven percent, but the company evidently spent over USD$2B, leading to the loss of USD$1.4B.
Those are very large numbers, and they’re in the negative column. It would seem that it’s dark days for Stratasys.
But not so. The company explained they’ve “completed the goodwill impairment analysis of all of its reporting units that began in the third quarter, and recognized an additional non-cash goodwill, and other intangible assets impairment charges of $104 million, net of tax”, which is another way of saying “write-offs”, which contributed to the loss. These are one-time expenses that won’t be seen again.
Stratasys also listed several initiatives to restructure the company to better match their revenue conditions, including a 10% staff reduction, manufacturing optimization and a reduction in operating expenses. They’re expecting the effect of these moves to be visible in 2016.
While all this is happening, the company still has a huge bankroll of USD$258M, which should keep them going for quite a while in any case.
Will these moves put the company back in the black? They believe so, predicting a 2016 profit of between USD$9-23M. But is that believable?
Evidently investors agree! After the announcement of these results, the company’s stock price jumped from the USD$14 range to now near USD$28, almost doubling! This could signal the beginnings of a general recovery in the 3D printing market.