Makerbot writedown3/27/2023 There are an increasing number of customer implementations of these systems in manufacturing-related applications where, after their qualification, the adoption of our solutions is expected to increase significantly. The Company continues to observe strong demand for its design and manufacturing enterprise solutions and expects growth in 2015 at a rate of more than 25% for these higher-end solutions. The Company also expects an effective tax rate of 5% to 10%. Additionally, the Company expects to incur capital expenditures in the range of $160 to $200 million in 2015. The investment plan is designed to implement broad product development and infrastructure which would support annual revenues of $3 billion in 2020.Īs a result of its new investment plan, Stratasys expects incremental annual operating expenditures of 2% of anticipated revenues for coming two to three years, with total operating expenses in 2015 to be in the range of 46% to 47% of anticipated revenues. Following extensive review of the evolving marketplace and opportunity, the management and the Board of the Company have decided to implement an investment plan with the goal of enabling the Company to offer a broader range of products and solutions with increased global and industry-specific coverage, especially within areas related to manufacturing, and create stronger customer relationships. Stratasys believes that Additive Manufacturing (“AM”) is poised to enter a new phase of increased adoption by manufacturers in a broad range of industries, including global manufacturing enterprises, by disrupting traditional design and manufacturing processes. *** The Street consensus is at FY15 revs of $1.01 billion and EPS of $2.91. The company projects a GAAP net loss for fiscal 2015 in the range of $23 to $10 million, or ($0.45) to ($0.20) per share. Projected Non-GAAP net income is expected to be derived disproportionately from the second half of fiscal 2015, driven by the projected timing of revenue and operating expenses. In 2015, the Company estimates total revenue in the range of $940 to $960 million, with non-GAAP net income in the range of $109 to $118 million, or $2.07 to $2.24 per diluted share. Given the nature and scope of these new partnerships compared with MakerBot’s traditional distribution model, less predictable sales patterns and reorder rates have been introduced into the business model. Furthermore, during the second half of 2014, the Company engaged national partners in the United States, including Staples, Home Depot, Sam’s Club and Dell – reaching new audiences through increased exposure for this new product category. However, during the fourth quarter, MakerBot was affected by challenges associated with the introduction and scaling of its new product platform and the Company’s rapidly evolving distribution model.ĭuring 2014, and specifically in the fourth quarter, MakerBot made significant hardware and software improvements to its product line. These continuing investments are intended to provide MakerBot with the ability to further scale and build superior product platforms positioned for long-term growth, as the adoption of 3D printing expands. Throughout 2014, MakerBot invested significantly in the introduction of its 5th Generation Replicator 3D printers and 3D printing ecosystem, and in the development of a multi-tier distribution strategy enabling broader distribution. MakerBot revenue is estimated to have grown by approximately 7% in the fourth quarter over the prior year, and is estimated to represent approximately 12% of preliminary total Stratasys revenue for the fourth quarter. However, the fourth quarter was impacted by slower growth of MakerBot product and services revenue during the period. Stratasys projects preliminary fourth quarter revenue growth of approximately 38% over the same period last year, including organic revenue growth of 25%. These are preliminary and unaudited results based on current expectations and are subject to quarter-end closing adjustments accordingly, actual results may differ. The Company does not expect this accounting write down to affect its ongoing business or future financial performance. As a result, the Company expects to recognize a non-cash, non-tax-deductible goodwill impairment charge of approximately $100 to $110 million in the fourth quarter. *** The Street is at FY14 revs of $763.6 million and EPS of $2.25.ĭuring December 2014, Stratasys updated the goodwill impairment analysis of its MakerBot reporting unit. The Company expects to report a GAAP net loss for fiscal year 2014 in the range of $129 to $116 million, or ($2.58) to ($2.32) per share. The Company expects to report fiscal year 2014 revenue in the range of $748 to $750 million, and non-GAAP net income in the range of $102 to $105 million, or $1.97 to $2.03 per diluted share.
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