Tag Archives: Stratasys
Stratasys and Objet Merger: Accretive to Earnings by $0.04 Per Share
Leading 3D printer manufacturers Stratasys and Objet announced a $1.4 billion merger agreement in April 2012. Today they filed a proxy statement for Q1 financial results and pro forma 2011 results.
“We are pleased with the progress we are making as we move forward with the combination of our two companies, creating a leader within the high-growth 3D printing and direct digital manufacturing industry,” said Scott Crump, chief executive officer and chairman of Stratasys. “We are confident that this transaction will build significant long-term value for all stakeholders of both companies, including stockholders, channel partners, customers, and employees.”
The proxy statement provides certain pro forma financial results that outline the combined performance for Stratasys and Objet during prior periods. Included in this press release are certain financial tables that outline the pro forma results on a GAAP and non-GAAP basis for the 3-month period ended March 31, 2012, and the 12-month period ended December 31, 2011. Stratasys standalone results for the same periods, which were previously released, are also provided in the financial tables of this press release for comparative purposes.
The Stratasys and Objet combined pro forma revenue and earnings per share for the 3-month period ended March 31, 2012 on a non-GAAP basis are $83.0 million and $0.32 per share, respectively, compared to Stratasys standalone reported non-GAAP revenue and earnings of $45.0 million and $0.28 per share.
The combined pro forma revenue and earnings per share for the 12-month period ended December 31, 2011 on a non-GAAP basis are $277.0 million and $0.94 per share, respectively, compared to Stratasys standalone reported non-GAAP revenue and earnings of $155.9 million and $1.04 per share.
The non-GAAP financial measures, which exclude certain charges, expenses and income, are outlined in more detail in the tables provided at the end of this press release.
Via MarketWatch.
How 3D Printing is Revolutionizing Rapid Prototyping
3D printer manufacture Stratasys sums up the impact of 3D printing on rapid prototyping in a brief blog post. 3D printing gives us “free range to design … [without being] limited by manufacturing capabilities.” Very powerful.
It may come as a surprise, but many Fused Deposition Modeling (FDM) users already take advantage of its ability to build usable products. No other technology can withstand the wide range of applications and post-processing techniques that FDM parts can take. This is just one example of how 3D printing is making design limitations a thing of the past. In this age, we are becoming more adapted to and knowledgeable of the CAD packages that give us free range to design whatever our creative minds can think of. In the past, our designs may have been limited by manufacturing capabilities, but not today. Whatever you can scan and alter, or design in CAD, you can have in your hand within hours or even minutes. Speed to production has never been faster than with FDM systems.
Via Stratasys blog.
Photo by saschapohflepp used under Creative Commons license.
Does HP Need to Make An Acquisition to Compete On 3D Printing?
Hewlett-Packard (NYSE:HPQ) has a $43 billion market cap and is the largest printer manufacturer in the world. But HP has not really embraced 3D printing yet and may need to make an acquisition to truly enter the market.
Seeking Alpha describes the current situation for HP:
In April 2010, HPQ signed a collaboration agreement with one of the 3D printer companies, Stratasys to create a 3D printer called DesignJet 3D. The retail price was over $17,000 when they first came out, and it doesn’t appear that HPQ is making a giant impact with this printer.
HPQ needs to come and buy either SSYS or 3D Systems. HPQ needs to play defense, by going on the offensive. It might not seem like it, but this is the same scenario as Eastman Kodak being the 800-pound gorilla in cameras and then falling behind when the time came for digital cameras. HPQ doesn’t want to miss out on this revolution. 3D printing is within 3-5 years of becoming affordable for the general public. 3D Systems has launched a personal 3D printer for as cheap as $1300. Moore’s Law is working in the 3D printing market as prices have drop 90% in the last 5 years and will continue to drop in the future.
Look at the relative stock price of HPQ vs the current 3D printing leaders (3D Systems, Stratasys, and Proto Labs). HP is down 39% while the 3D printing portfolio is up 112% over the last 12 months.
The market is still early. Will HP make a move this year or wait for the market to mature?
Via Seeking Alpha.
Gorilla photo by poplinre used under Creative Commons license.
3D Printing Stocks are Hot: Top Public Companies Up 180% Over 6 Months
There are a small number of public companies in the 3D printing industry today. The leading stocks are 3D Systems (NYSE:DDD), Stratasys (NASDAQ:SSYS), and Proto Labs (NYSE:PRLB). The chart above shows a 6-month comparison of this aggregate 3D printing portfolio vs. the S&P, Dow Jones, and NASDAQ. 3D printing names are up over 180%.
The 3D printing industry, also known as additive manufacturing and rapid prototyping, is at an inflection point.
Where to Invest?
For those looking to consider an investment in 3D printing stocks, Seeking Alpha’s analysis of the leading companies can be helpful.
First a reality check on the current state of the market.
Unfortunately the concept has limited commercial production capabilities and material challenges. Over time, these will naturally become less and less of a problem. For now though, several sectors such as aviation parts and medical devices can benefit greatly from the ability to RP. Not to mention, any wealthy person that wants to make their own iPhone case at home.
Then an analysis of each stock. Excerpts below:
3D Systems is leading the 3D printing market, but unfortunately investors missed the golden opportunity to buy back at the end of December when the stock still traded around $15. It now fetches over $30.
With a forward PE of 23, the stock trades roughly in line with the expected growth rate. While not cheap, it isn’t expensive and actually provides a solid earnings profile unlike most of the recent IPOs in the hot sectors of social media and cloud computing.
Stratasys provides another option in 3D printing, but the stock has likewise more than doubled since the lows back in October of last year. The company recently released the Mojo 3D Printer which is the market’s lowest-priced professional-grade complete 3D printing system priced at $9,900.
This stock trades at a richer valuation than 3D Systems with a forward PE of over 30. The company also only reported 30% revenue growth for Q112 while analysts only forecast 15% long term growth.
The recent announced merger with Objet is expected to launch Stratasys into a leadership position in the 3D Printing market. The combined company will rival the $1.5B market cap of 3D Systems along with the revenue size.
Proto Labs is an alternative investing option in 3D rapid prototyping and manufacturing short-runs of real parts. The company went public back in February, but the stock appears to have a similar pricey multiple as the 3D printing sector.
The company reported 34% revenue growth and a solid 25.5% operating margin. At a forward PE of 29, the company trades in the range of its long term growth rate. With revenue expectations of around $127M for 2012, the company remains relatively small.
Read the full analysis at Seeking Alpha.
Disclaimer: Please consult a financial advisor before making any investment decisions.
Objet Launches Most Versatile Desktop 3D Printer and Catchy Promo Video
Objet, the Israeli 3D printer manufacturer that recently merged with Stratasys, has announced a new professional Desktop 3D printer priced at $19,900.
From the Objet press release:
Objet Ltd , the innovation leader in 3D printing for rapid prototyping and additive manufacturing, has today launched the new Objet30 Pro – the most versatile professional in-house desktop 3D printer available on the market. Unveiled at RAPID, the new desktop 3D printer offers 7 different materials, including, for the first time on a desktop system, clear transparent material and high temperature resistant material.
The Objet30 Pro is positioned as the ultimate rapid prototyping solution for designers and engineers, ranging from industries such as consumer goods and consumer electronics to medical devices and design consultancies.
The Objet30 Pro takes its place as the new top-of-the-line addition to Objet’s existing desktop 3D printer line which starts at $19,900. With a small footprint, professional 28 micron print quality and wide ranging material versatility, the Objet30 Pro produces high quality prototypes with a choice of 7 different materials and functional properties, offering designers and engineers a world of possibilities:
- Objet clear transparent material (Objet VeroClear) for simulating PMMA/glass;
- Objet High temperature material for heat-resistant static functional testing;
- Objet polypropylene-like material (Objet DurusWhite) for simulating snap-fit parts; and
- Four rigid, opaque materials for standard plastic simulation (Objet Vero Family in black, white, gray, and blue).
“Having the correct tools and resources to advance our product development is critical for our organization,” said Gregory Janice, Engineering Manager at Princeton Tec. “The Objet30 Pro’s ability to print parts made with a clear transparent material on a desktop 3D printer combined with its ease of use and versatility made the Objet30 Pro a sound investment for our team.”
“The Objet30 Pro is the next evolution in desktop 3D printers developed specifically for professional users”, said David Reis, CEO of Objet. “This desktop 3D printer provides outstanding print quality with a choice of seven materials that until now could only be found in much larger, high-end 3D printers. The Objet30 Pro is the perfect combination of professional, versatile in-house 3D printing at an attractive price point,” concluded Reis.
Objet released a catchy video to showcase the printer capabilities.
About Objet
Objet Ltd., is a leading provider of high quality, cost effective inkjet-based 3D printing systems and materials. A global company, Objet has offices in North America, Europe, Japan, China, Hong Kong, and India.
Objet’s 3D printing systems and 3D printing materials are ideal for any company involved in the manufacture or design of physical products using 3D software or other 3D content. Companies using Objet’s solutions can be typically found in sectors such as consumer goods & electronics, aerospace & defense, automotive, education, dental, medical and medical devices, architecture, industrial machinery, footwear, sporting goods, toys and service bureaus.
Founded in 1998, the company has thousands of customers worldwide including a substantial share of the relevant Fortune 100 and Fortune 500. Its award-winning technology (13 awards in 8 years) is based upon over 110 patents and patent pending inventions.
Objet’s advanced 3D printing systems and range of about 70 materials enable professionals to build prototypes that accurately simulate the true look, feel and function of an end-product, even complex, assembled goods. The Objet Connex™ line of multi-material 3D printers features the world’s only technology to simultaneously jet 2 materials. With this, users can print many different materials into a single part and print various mixed parts on the same build tray. Users can also create advanced composite materials, or Digital Materials™ featuring unique mechanical and thermal properties. Objet’s range of about 70 3D printing materials simulate properties ranging from rigid to rubber-like, transparent to opaque and standard to ABS-grade engineering plastics, with a large number of in-between shore grades and shades.
Objet’s 3D printers are available in a range of form-factors, from cost-effective desktop 3D printers ideal for entry-level professionals all the way to industrial-scale multi-material machines for front-line designers and top manufacturers. Objet’s 3D printers feature the industry’s highest-resolution 3D printing quality, based on 16-micron (0.0006 in.) super-thin layering, wide material versatility, office friendliness and ease of operation.
Via MarketWatch.
