Stratasys announced Monday that its chief executive officer Ilan Levin is resigning June 1, after less than two years on the job. The 3D printing and additive manufacturing vendor said current board chairman Elan Jaglom will assume the position until a permanent CEO is chosen. Levin will provide ongoing consultancy services "as needed." "The Board of Directors is appreciative of Ilan's contributions to Stratasys and Objet for over 15 years," Jaglom said in a prepared statement. "Ilan has implemented a number of key decisions as CEO that have kept the Company strong and ready for future expansion.
What remains to be seen is how HP's planned entry into the metal 3D printing market impacts enterprises. HP Metal Jet was outlined in September but broad availability isn't expected until 2021. In any case, it's safe to say there is a lot of interest in 3D printing with metal among manufacturers. Stratasys reported earnings on Thursday and delivered third quarter revenue of $162 million, up from $155.9 million a year ago. The company reported a net loss of a penny a share and non-GAAP earnings of 11 cents a share.
Stratasys said sales of high-end 3D printing systems bounced back to more normal patterns in the second quarter as its results topped estimates. The company, which is focused on 3D printing and additive manufacturing, reported a second quarter net loss of $3.6 million, or 8 cents a share, on revenue of $170.2 million, flat with a year ago. Non-GAAP earnings for the second quarter were 15 cents a share. Wall Street was expecting second quarter non-GAAP earnings of 9 cents a share on revenue of $167 million. The company reiterated its revised outlook for 2018.
The company's focus on additive manufacturing comes a week after 3D Systems missed its earnings target and pulled it outlook. Vyomesh Joshi, CEO of 3D Systems and former HP executive, said the company is focused on customized innovation and a go-to-market strategy that goes "vertical to vertical, bridging the chasm between traditional and additive manufacturing." For 3D Systems, the challenge will be competing with the likes of Stratasys, which also has a vertical focus and HP. The company reported third quarter revenue of $153 million, below estimates of $163 million. Earnings for the quarter also missed estimates with an adjusted loss of 20 cents a share.
The COVID-19 pandemic has highlighted the potential of additive and 3D printing to shore up weak spots in manufacturing and global supply chains, but the profits have been hard to come by. Stratasys said it is cutting salaries another 5% for top executives, eliminating 10% of its workforce and shifting to a 4-day workweek to save money. Stratasys missed estimates with second quarter sales that fell 27.9%. Stratasys reported a second quarter net loss of 51 cents a share on revenue of $117.6 million, down from $163.2 million a year ago. Yoav Zeif, CEO of Stratasys, highlighted the potential and clash with the COVID-19 economy.