Yay! Stratasys sees slow return to growth in 2016

Mar 3, 2016 | Hot Topics

There’s hope in the world of 3D printers! Stratasys announced earnings just now and provided guidance for 2016 that looks pretty good. Not awesome, mind you, but:

  • Total revenue for Q4 was $173 million, down 20% from a year ago
  • Citing weak demand from industrial customers, product revenue fell 26% to $124 million
  • Services revenue was up 1% to $49 million
  • Stratasys said it sold 4,629 3D printing and additive manufacturing systems in Q4 and a total of 146,024 systems worldwide as of December 31, 2015
  • Revenue for fiscal 2015 was $696 million, down 7% from $750 million in 2014

CEO David Reis said in prepared remarks that Stratasys’ Q4 results reflect a “market environment that is consistent with conditions we have observed throughout the year. Despite this challenging environment, we remain focused on our strategic initiatives … We have entered a transformative new phase in our company’s development. Our goal is to maintain our leadership position in prototyping, while developing a solutions-based business model that targets key vertical markets and emerging applications for end-use parts. We believe our comprehensive new strategy will help grow our markets and is essential for maintaining our leadership position.”

What has investors excited right now is that the company reported a smaller loss than was expected and issued guidance for 2016 of revenue between $700 million and $730 million. That means growth of 0% ,to 2% at the midpoint, to 5% at the high end. Nothing giddy or dazzling, but a return to growth.