Stratasys, a 3D printing and additive manufacturing vendor, delivered a first quarter that fell short of expectations as orders of high-end systems were pushed out. The big mystery is whether Stratasys is seeing competitive pressure from rivals like HP and 3D Systems or a broader macro economic trend. The company reported a first quarter net loss of $13 million, or 24 cents a share, on revenue of $153.8 million, down from $163.2 million in the same quarter a year ago. Non-GAAP earnings for the first quarter were 5 cents a share. Wall Street was expecting Stratasys to report non-GAAP earnings of 8 cents a share in the first quarter on revenue of $167.5 million.
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.
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.
HP delivered a strong fiscal second quarter driven by PC average selling prices and a beefed up printing unit via acquisition, but the real question revolves around when 3D printing and additive manufacturing will be material to the company. After all, HP won't be able to keep growth going unless it finds a new trick. That trick is most likely 3D printing and its impact on additive manufacturing. On those fronts, HP has been delivering some solid announcements of late. If you add up the moving parts, there are good reasons to be bullish about HP's 3D printing business.
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.