Stratasys Ltd. (SSYS – Free Report) reported mixed results for fourth-quarter 2017, wherein earnings matched the Zacks Consensus Estimate while revenues surpassed the same. Both the metrics improved year over year.
In the quarter under review, the company’s non-GAAP earnings per share came in at 16 cents, which increased 6.7% on a year-over-year basis.
Quarter Details
Stratasys’ revenues of $179.3 million outpaced the Zacks Consensus Estimate of $174 million. Also, on a year-over-year basis, the figure rose 2.3%.
Segment wise, Product revenues were up 2.5% from the year-ago quarter to $129.8 million mainly owing to the rise in system revenues. The company stated that the system revenues were driven by the increased demand for “professional rapid prototyping application” oriented F123 Series, the company’s “new J700 Dental Solution” and its “H2000 Large Part FDM 3D Production System”.
Revenues from Services increased 2% year over year to $49.6 million. The upswing can be primarily attributable to 7% growth in customer support revenues mainly driven by growth in the installed base of systems and enhancement of service contract attached rate.
Stratasys’ non-GAAP gross margin contracted 110 basis points (bps) to 52.5%, primarily due to product mix.
The company’s non-GAAP operating expenses decreased 2.3% year over year to $80.6 million. Also, as a percentage of revenues, non-GAAP operating expenses were down year over year from 47% to 44.9%.
Non-GAAP operating income totaled $13.5 million compared with $11.6 million in the year-ago quarter. Operating margins came in at 7.6% compared with 6.6% in the prior-year quarter.
The company exited the quarter with cash and cash equivalents of $328.8 million compared with $302.8 million at the end of the previous quarter. Inventories came in at approximately $115.7 million than $124.1 million last quarter. As of Dec 31, 2017, long-term debt came in at $27.1 million.
