First Quarter Revenue of $155.3 million

First Quarter GAAP net loss of $2.3 million, or ($0.04) per diluted share, and non-GAAP net income of $5.7 million, or $0.10 per diluted share

MINNEAPOLIS & REHOVOT, Israel — (BUSINESS WIRE) — May 2, 2019 — Stratasys Ltd. (NASDAQ: SSYS) announced financial results for the first quarter of 2019.

Q1 2019 Financial Results Summary:
Revenue for the first quarter of 2019 was $155.3 million, compared to $153.8 million for the same period last year.

• GAAP gross margin was 49.2% for the quarter, unchanged from the same period last year.
• Non-GAAP gross margin was 52.0% for the quarter, compared to 52.8% for the same period last year.
• GAAP operating loss for the quarter was $3.3 million, compared to operating loss of $6.5 million for the same period last year.
• Non-GAAP operating income for the quarter was $6.8 million, compared to non-GAAP operating income of $4.9 million for the same period last year.
• GAAP net loss for the quarter was $2.3 million, or ($0.04) per diluted share, compared to a net loss of $13.0 million, or ($0.24) per diluted share, for the same period last year.
• Non-GAAP net income for the quarter was $5.7 million, or $0.10 per diluted share, compared to non-GAAP net income of $2.7 million, or $0.05 per diluted share, reported for the same period last year.
• The Company generated $4.6 million of cash from operations during the first quarter and ended the period with $367.8 million of cash and cash equivalents.

“We are pleased with our first quarter top-line results, and are particularly encouraged by the continuation of the strong performance we have seen in North America over the last several quarters, demonstrating steady adoption of our systems and materials in our largest market,” said Elchanan (Elan) Jaglom, Interim Chief Executive Officer of Stratasys. “We are also pleased with our non-GAAP profitability in the first quarter, demonstrating our continued commitment to controlling expenses and delivering shareholder value. Our recent new product introductions are generating significant interest from our customers and expanding our addressable markets, and we look forward to additional announcements as we move through 2019 and into 2020.”

Recent Product Announcements
At the recent Additive Manufacturing User Group conference, the Company made the following announcements of new products and features that it believes will expand its addressable markets and strengthen its leadership in rapid prototyping, manufacturing, and high-realism multi-color, multi-material 3D printing.

• F120 3D Printer – an industrial-grade system targeting customers new to additive manufacturing. Offering the benefits of the Stratasys F123 platform at an affordable price with reliable, accurate, and repeatable 3D printing, it is specifically designed for designers, engineers and educators.
• V650 Flex Stereolithography 3D Printer – Stratasys’ first commercially-available entry into the stereolithography marketplace, combining the power of a large-scale system with an open, configurable environment and fine-tuning across a broad range of available resins.
• Stratasys J750 and J735 Printers are now the first and only 3D printing systems with technology officially recognized as “Pantone-Validated” – allowing for synchronized color communication between designers, modelers and manufacturers.

Financial Guidance:
Stratasys today reiterated the following information regarding the Company’s guidance for projected revenue and net income for the fiscal year ending December 31, 2019:

• Revenue guidance of $670 to $700 million.
• GAAP net loss of $22 to $12 million, or ($0.40) to ($0.22) per diluted share.
• Non-GAAP net income of $30 to $38 million, or $0.55 to $0.70 per diluted share.

Stratasys also reiterated the following guidance regarding the Company’s projected performance and strategic plans for 2019:

• Non-GAAP operating margins of 5.5% to 6.5%.
• Capital expenditures are projected at $45 to $60 million.