Stratasys reported better-than-expected fourth quarter results as the company said manufacturing sales represented more than 25% of sales.
The 3D printing company reported fourth quarter earnings of $11 million, or 20 cents a share, on revenue of $142.4 million, down from $160.2 million a year ago. Non-GAAP earnings were 13 cents a share.
Wall Street was looking for fourth quarter revenue of $135.34 million and break even earnings on a non-GAAP basis.
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Stratasys' results were down from a year ago but are showing improvement. COVID-19 hampered many of Stratasys' customers base.
Dr. Yoav Zeif, CEO of Stratasys, said the company showed sequential revenue growth in the back half of the year. Zeif said a focus on polymer 3D printing, high-growth manufacturing applications and efficiency is paying off. Stratasys also has a balance sheet with no debt.
On a conference call, Zeif said:
At Stratasys, we are well positioned to grow. We have a strong balance sheet with no debt that is set to support future growth. We believe that prudently investing capital back into the business will result in meaningful accelerated revenue, earnings in both and cash flow in the years ahead. In August, we shared our new strategy to lead the polymer 3D printing market by delivering the most innovative next-generation technologies that address the fastest-growing manufacturing application. All while leveraging the strongest go-to-market infrastructure in our industry. We are the right approach to position growth. Manufacturing is by far the largest addressable market. We know firsthand from our existing business that manufacturing applications typically have higher applications. Manufacturing drives increased recurring revenue from consumables, which results in a higher value opportunity for Stratasys.
Zeif also added that the Origin acquisition is expected to deliver revenue groth in 2022 and drive $200 million in new annual business in 2025. The CEO added that manufacturing is going to be the biggest driver of growth in the future.
For 2020, Stratasys reported revenue of $520.8 million, down from $636.1 million a year ago. Stratasys reported a new loss of $443.7 million, or $8.08 a share, due to a goodwill impairment charge int he third quarter. Non-GAAP 2020 net loss was $13.9 million, or 25 cents a share.
As for the outlook, Stratasys said first quarter revenue will be roughly flat with a year ago with second quarter sales in the mid-teens growth percentage.
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