3D printer maker Stratasys cuts profit forecast after GrabCAD deal

Reuters

Nov 5 (Reuters) – 3D printer maker Stratasys Ltd
cut its profit forecast for 2014, citing its recent acquisition
of computer-aided design systems developer GrabCAD and ongoing
development costs.

Stratasys’s shares were down 7.7 percent in premarket
trading on Wednesday as investors shrugged off the company’s
better-than-expected third-quarter revenue and profit.

Stratasys completed its purchase of GrabCAD on Sept. 23. The
financial details of the deal were not disclosed.

The company reaffirmed its full-year revenue forecast of
$750 million to $770 million, but cut its profit forecast to
$2.21-$2.31 per share from $2.25-$2.35.

Analysts on average expect a profit of $2.30 per share on
revenue of $759 million, according to Thomson Reuters I/B/E/S.

Stratasys reaffirmed its revenue guidance of $750 million to
$770 million.

The company reported a 62 percent jump in revenue for the
third quarter ended Sept. 30, helped by strong demand for its
MakerBot-branded consumer products and services.

Revenue from MakerBot increased by more than 80 percent
compared with the same quarter of 2013.

Stratasys, which has traditionally sold industrial printers
for $15,000-$750,000, bought MakerBot last year to offer
printers starting at just over $1,000.

Industries use 3D printing to make prototypes and
specialized tools, moldings and some end-use parts, but there is
growing demand for home 3D printers that can churn out simple
products.

Stratasys said last week it holds about 55 percent of the
market for printers priced over $10,000. It said it has about 35
percent of the market for desktop printers sold for under
$10,000, largely through its MakerBot branded printers.

Stratasys executives, citing industry research, have said
the global 3D-printing market is expected to swell to $21
billion by 2020 from $3 billion last year.

Hewlett-Packard Co said last week it had developed
3D-printing technology that can print 10 times faster and at
considerably less expense than current products, and that it
plans to launch the technology broadly in 2016.

The news sent Stratasys’s shares down 3 percent.

The net loss attributable to Stratasys widened to $31.3
million, or 62 cents per share, in the quarter ended Sept. 30,
from $6.6 million, or 16 cents per share, a year earlier.

Net sales rose to $203.6 million from $125.6 million.

Stratasys shares were trading at $111.89 premarket, down
from their Tuesday close of $121.25. Up to Tuesday’s close, the
stock had fallen about 10 percent this year.

(Reporting By Arathy S Nair and Anya George Tharakan in
Bangalore; Editing by Ted Kerr)

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