Stratasys Ltd. SSYSreported disappointing results for first-quarter 2018, wherein both the top and bottom-line figures fell short of the Zacks Consensus Estimate.
In the quarter under review, the company’s non-GAAP earnings per share came in at 5 cents, which missed the Zacks Consensus Estimate of 8 cents per share.
Quarter Details
Stratasys’ revenues of $153.8 million missed the Zacks Consensus Estimate of $167 million. Also, on a year-over-year basis, the figure declined 5.7%.
The decline in revenues was primarily due to disappointing decline in sales of high end products in North America. Sluggish demand from government and other key vertical customers like aerospace and automotive resulted in the lower-than-expected sales.
Segment wise, Product revenues were down 9.7% from the year-ago quarter to $103.9 million. Within product revenues, system revenues dropped 20.7% due to lower sales of high-end products in North America.
Revenues from Services increased 3.8% year over year to $49.9 million. The increase in Services revenues was primarily attributed to 7.3% year-over-year increase in support revenues that include revenues generated mainly through maintenance contracts. The growth in installed base of systems and improvement in service contract attach rate led to improved revenues.
Stratasys’ non-GAAP gross margin expanded 160 basis points (bps) to 52.8%.
Non-GAAP operating income totaled $4.9 million, compared with $4 million in the year-ago quarter. Operating margin was 3.2% compared with 2.5% in the prior-year quarter.
The company exited the quarter with cash and cash equivalents of $346.5 million compared with $328.8 million at the end of the previous quarter. Inventories came in at approximately $120.1 million compared with $115.7 million last quarter. As of Mar 31, 2017, long-term debt came in at $25.9 million.