Stratasys reported its official first-quarter 2015 results last week (here's my take on earnings). The headline numbers were anticlimactic because the leading 3D printing company had released preliminary resultsand 2015 guidance that fell significantly short of analysts' expectations.
Our purpose here is to supplement the earnings release data with color from Stratasys' conference call. Here are four key things you should know about.
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Company's razor-and-blades business model appears to be on trackFrom CFO Erez Simha's prepared remarks:
Long-term operating model's goals remain unchangedFrom the prepared remarks of VP of Investor Relations Shane Glenn:
Stratasys pared back its 2015 revenue, generally accepted accounting principles earnings, and non-GAAP earnings guidance when it issued its preliminary first-quarter results, and it further decreased its GAAP expectations again when it released its official results. However, on a positive note, the company reiterated its long-term expectations.
Integration of the three 3D-printing service bureaus is completeFrom CEO David Reis' prepared remarks:
Many of you were probably aware that Solid Concepts was reportedly the largest on-demand 3D-printing service bureau when Stratasys acquired it last summer. However, a reminder seems in order, given that MakerBot has hogged the spotlight for the past two quarters. Also, given that the integration of the three service operations is now complete, it seems likely that we might see service gross margins firm up going forward.
Decrease in gross margin was not due to a drop in average selling prices or the competitive environmentReis' response to an analyst's question:
This answer was in response to a question about the drop in the company's gross margin, which Reis also commented was "mainly, mainly, mainly due to our mix of product."
Final thoughtsThere was plenty of negative news in Stratasys' first-quarter results -- namely, the second consecutive MakerBot goodwill impairment charge, the drop in gross margin, and the further ratcheting back of 2015 guidance. However, there were some bright spots, too, as noted above, which investors should be sure to note.
The article Stratasys Earnings Call: 4 Don't-Miss Quotes From Management originally appeared on Fool.com.
Beth McKenna has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Stratasys. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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