09-May-14 06:38 ET In PlayStratasys reports EPS in-line, beats on revs; reaffirms FY14 guidance (94.32 ) : Reports Q1 (Mar) earnings of $0.40 per share, in-line with the Capital IQ Consensus of $0.40; non-GAAP revenues rose 54.0% year/year to $151.2 mln vs the $143.11 mln consensus.
System and consumables revenue grew by 40% and 29%, respectively, when excluding the contribution from MakerBot products. MakerBot branded products and services contributed $20.6 million to first quarter revenue, a 79% increase over the revenue that MakerBot generated as an independent company during the first quarter of 2013. Sales of the company's higher-margin products and services drove a significant increase in non-GAAP gross margin for the first quarter, which expanded to a record 60.9% compared to 59.0% for the same period last year. Operating margin expansion during 2014 within the company's core business is expected to be offset by aggressive investments in new market and product development for MakerBot products.Co reaffirms guidance for FY14, sees EPS of $2.15-2.25 vs. $2.21 Capital IQ Consensus; sees FY14 revs of $660-680 mln vs. $677.70 mln Capital IQ Consensus.
Financial guidance excludes for the impact of the company's pending acquisitions of Solid Concepts and Harvest Technologies. The transactions are expected to be completed early in the upcoming third quarter, subject to customary closing conditions, and are expected to be accretive to Stratasys' Non-GAAP earnings per share within the first 12 months after closing. Operating expenses are projected to expand materially in 2014 driven by investments in sales and marketing programs to drive future market adoption, as well as by increased R&D investments to fund technology innovation and new product development. Incremental sales and marketing investments will focus on expanding sales channels, enhancing regional infrastructure, and building unique go-to-market programs targeting certain market verticals and customer applications. Compared to the first quarter, Non-GAAP operating margins are expected to ramp higher for the remainder of 2014, and are projected to remain relatively consistent for the full year when compared to the level recognized in 2013. Operating margin expansion in the company's core business is expected to be offset by a full-year impact from MakerBot, which is investing aggressively in market development and new product introductions. Non-GAAP net income is expected to be derived disproportionately from the second half of fiscal 2014, driven by the projected timing of operating expenses, as well as the projected timing and success of new product introductions and their corresponding ramp up in sales. |
