Stratasys, a former high-flyer of the 3D printer maker pack, reported dismal third quarter earnings and revenue on November 15.
The Rehovot, Israel-based company posted a net loss of $21 million, or 40 cents per share. Non-GAAP earnings were zero on revenues of $157.2 million. Wall Street was expecting earnings of 5 cents a share on revenue of $174.54 million.
To make matters worse, Stratasys lowered its revenue guidance for the fiscal year. The company now expects revenue in the range of $662 to $673 million, compared with analyst estimates of $701.47 million. Adjusted earnings are expected to fall in a range of 13 cents to 21 cents, well below analyst estimates of around 32 cents a share.
Stratasys' shares fell more than 13 percent in early trading.
In prepared remarks, Ilan Levin, who took over as Stratasys CEO in June after the resignation of David Reis, said the company is making progress with its revenue turnaround strategy.
"We were pleased to recognize additional improvements to our operational efficiency during the period which was reflected in a reduction in non-GAAP operating expenses and increase in our non-GAAP gross margin compared to the same period last year," Levin said. "We will continue to seek further improvements in our cost structure as we strive to align our operations even more closely with our anticipated results."
Over the last year Stratasys has tried to rekindle growth in its 3D printing business by looking to hardware innovations and manufacturing partnerships to boost sales. The company also re-engineered the MakerBot Replicator and Mini lines to deal with performance and reliability issues. But like others in the space, Stratasys has struggled to offset a slowdown in demand among 3D printer manufacturers.