Stratasys sees FY14 revs of $748-750 mln vs $763.55 mln Capital IQ Consensus Estimate, adj EPS of $1.97-2.03 vs $2.25 Capital IQ Consensus Estimate; sees FY15 EPS and revs below consensus (80.08 +0.59)
>>>FY14:
Co expects to report fiscal year 2014 revenue in the range of $748 to $750 million (vs $763.55 mln Capital IQ Consensus Estimate), and non-GAAP net income in the range of $102 to $105 million, or $1.97 to $2.03 per diluted share (vs $2.25 Capital IQ Consensus Estimate).
During December 2014, Stratasys updated the goodwill impairment analysis of its MakerBot reporting unit. 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.
Stratasys projects preliminary fourth quarter revenue growth of approximately 38% over the same period last year, including organic revenue growth of 25%. However, the fourth quarter was impacted by slower growth of MakerBot product and services revenue during the period. 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.
>>>FY15:
In 2015, the Company estimates total revenue in the range of $940 to $960 million (vs $1.01 bln Capital IQ Consensus Estimate), with non-GAAP net income in the range of $109 to $118 million, or $2.07 to $2.24 per diluted share (vs $2.92 Capital IQ Consensus Estimate).
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.
Co has 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. The investment plan is designed to implement broad product development and infrastructure which would support annual revenues of $3 billion in 2020.
As 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. Additionally, the Company expects to incur capital expenditures in the range of $160 to $200 million in 2015. The Company also expects an effective tax rate of 5% to 10%.
Long term goals reiterated:
Annual organic revenue growth of at least 25%; Non-GAAP operating income as a percentage of sales of 18-23%; Non-GAAP effective tax rate of 10-15%; Non-GAAP net income as a percentage of sales of 16-21%