Demand for 3-D printers helps Eden Prairie-based Stratasys; merger with Israel’s Objet Ltd. going “according to plan,” CEO says.
Shares of Stratasys, the merged American-Israeli company that makes 3-D printers for designers and manufacturers, rose 7 percent Monday after the company projected 20 percent-plus sales growth in 2013 and reported that its 2012 merger is working so far.
“So far, everything is going according to plan,” CEO David Reis said of the marriage of Eden Prairie-based Stratasys and Israel’s Objet Ltd., which maintain dual headquarters.
“Our market reach has expanded and we are beginning to see opportunities for cross-selling of a complementary product portfolio,’’ Reis told analysts during a conference call after reporting better-than-expected 2012 results. “We are very excited about the long-term potential of this merger and we have initiated a detailed plan for integration of our two companies.”
This was the first quarterly report for the company since the completion of the December merger with Objet Ltd. of Rehovot, Israel. Stratasys closed at $68.82, up $4.56 per share. That’s off its 12-month high of about $90 per share, but double its year-ago price.
Strong demand for 3-D printers helped Stratasys report better-than-expected fourth quarter revenues of $96.4 million, a 23 percent increase over the same period last year.
For the quarter, the company lost $3.5 million or 9 cents per share. However, adjusted profit — excluding asset write-offs and merger-related expenses — was $16.3 million, or 40 cents per share. That topped analysts’ consensus expectation of 38 cents per share.
The company lost $21.6 million, or 58 cents per share, in fiscal 2012. However, adjusted net income was $59.6 million for fiscal 2012, or $1.49 per share, a 60 percent increase over $37.2 million, or 94 cents per share, last year.
Revenue for the year was $359 million, a 30 percent increase over last year’s revenue of $277 million.
“We believe we’re in the early stage of a multiyear growth opportunity,” Reis said.
Stratasys projected 2013 earnings growth of up to 31 percent, or $1.95 per share, on revenue that should increase by up to 24 percent, or $445 million, this year.
The merged Stratasys takes Internet-delivered designs from customers to produce everything from small tools to cars using layered thermoplastics. The company now boasts 130 3-D printing materials, giving it the widest array in the industry, the company says.
Erez Simha, the chief financial officer, said the company had a nearly $30 million backlog of orders going into 2013, giving Stratasys “a high level of confidence” about a strong year.
In response to a question, Reis said the company is having success penetrating the market for high-end printers, such as those that can produce prototypes of dental equipment, as well as less expensive copiers that can be located in customer offices.
Stratasys makes and services the printers and also provides the printing materials. The company said it is utilizing a growing global network of 260 resellers and independent sales agents.
Staff writer Patrick Kennedy contributed to this story.
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