Stratasys Ltd. is putting in cost-control measures and forming new partnerships as the 3-D printing company reported falling revenue for the fifth quarter in a row.
Revenue for the third quarter ended Sept. 30 was $157.2 million, down 6 percent from the $167.6 million recorded in the same quarter a year ago, the company said Tuesday. The company, based in Eden Prairie and Rehovot, Israel, lost $21 million, or 40 cents a share, compared with a loss of $901 million, or $17.35 a share, in the same period last year.
Adjusted for one-time events, earnings were flat, at $100,000 or zero cents a share. Among 20 analysts tracked by Thomson Reuters, the consensus estimate was EPS of 5 cents per share on revenue of $174.2 million.
“The market environment did not change significantly, and remained similar to the environment observed in recent quarters,” said Erez Simha, chief financial officer and chief operating officer of Stratasys, during a conference call with analysts.
Shares of Stratasys fell 12 percent Tuesday to close at $17.95 a share, down $2.55.
As the 3-D printing market matures and bigger players join the field, Stratasys sees continued growth in developing additive manufacturing solutions that target specific customer applications, officials said. Stratasys recently announced technologies and partnerships with Siemens, Boeing and Ford Motor Co.
Meanwhile, in its desktop 3-D printing space, sales of its MakerBot product declined 29 percent compared with the third quarter last year. The company cited overall weakness in the market and timing of new MakerBot product introductions for the sales decline.
Despite the losses and declining revenue, Stratasys said that gross margins were improving due to the cost-control measures put in place.
Stratasys also reduced its guidance for the rest of 2016. It now expects adjusted income of $7 million to $11 million, or 13 to 21 cents per share, on revenue in the $662 million to $673 million range. In a previous guidance, the company expected to have sales in the range of $700 million to $730 million and earnings in the range of 17 to 43 cents per share.
Analysts were expecting the company to report full-year earnings 32 cents per share on revenue of $690.8 million.