Stratasys(US:SSYS)2022-11-09 16:00Financial Performance - Total revenues for the three months ended September 30, 2022, were $162.2 million, a 2% increase from $159.0 million in the same period of 2021[8] - Product revenues for the three months ended September 30, 2022, were $112.1 million, compared to $108.9 million in the same period of 2021, reflecting a 2% increase[8] - Service revenues for the three months ended September 30, 2022, were $50.1 million, slightly down from $50.1 million in the same period of 2021[8] - Gross profit for the three months ended September 30, 2022, was $70.7 million, compared to $68.2 million in the same period of 2021, resulting in a gross margin of approximately 43.5%[8] - Operating loss for the three months ended September 30, 2022, was $(15.6) million, an improvement from $(21.9) million in the same period of 2021[8] - Net income for the three months ended September 30, 2022, was $18.7 million, compared to a net loss of $(18.1) million in the same period of 2021[8] - Total revenues for the nine months ended September 30, 2022, reached $492.2 million, up from $440.2 million in the same period of 2021, indicating a growth of 11.8%[22] Cash and Assets - Cash and cash equivalents as of September 30, 2022, were $150.7 million, down from $243.2 million as of December 31, 2021[5] - Total assets as of September 30, 2022, were $1.27 billion, a slight decrease from $1.28 billion as of December 31, 2021[5] - Total liabilities as of September 30, 2022, were $318.7 million, compared to $321.2 million as of December 31, 2021[6] - Total equity as of September 30, 2022, was $948.7 million, down from $956.0 million as of December 31, 2021[7] - Total cash, cash equivalents, and restricted cash at the end of the period was $150,823, down from $332,988 at the beginning of the period[11] Stock and Compensation - Stock-based compensation for the nine months ended September 30, 2022, amounted to $24,755, an increase from $23,140 in the prior year[11] - Total stock-based compensation expenses for the three months ended September 30, 2022, were $7.391 million, compared to $7.958 million for the same period in 2021[47] - The Company recognized a total of $24.755 million in stock-based compensation expenses for the nine months ended September 30, 2022, up from $23.140 million in the same period in 2021[47] - As of September 30, 2022, the unrecognized compensation cost related to unvested equity-classified stock options was $1.3 million, expected to be recognized over 2.35 years[48] - The unrecognized compensation cost related to unvested RSUs and PSUs was $59 million, expected to be recognized over 2.40 years[51] Acquisitions and Investments - Stratasys' investment in Xaar 3D increased its stake from 15% to 45% for approximately $15.7 million, with a subsequent acquisition of the remaining 55% for $29.3 million[16] - The merger of MakerBot with Ultimaker resulted in a net gain of $39.1 million from the deconsolidation of MakerBot, with Stratasys holding a 46.5% share in the new entity valued at $105.6 million[20] - The acquisition of Covestro's additive manufacturing materials business is expected to close in Q1 2023 for approximately $42.3 million, with potential earn-out payments of up to $36.4 million based on performance metrics[20] - The company’s total assets acquired from the Xaar 3D transaction were valued at $75.7 million, with net assets acquired amounting to $53.1 million[19] - The estimated fair value of contingent consideration for the Xaar 3D acquisition could reach up to $21 million, based on performance metrics[17] Legal and Compliance - The Company is involved in various legal proceedings, but management believes the outcomes will not significantly affect its financial position or cash flows[57] - The Company has a Rights Plan adopted on July 24, 2022, to protect shareholders' interests against potential hostile takeovers[56] Foreign Exchange and Hedging - The Company reported a cash flow hedge net gain of $1.209 million and a foreign currency translation adjustment loss of $15.432 million as of September 30, 2022[53] - The Company had foreign exchange forward contracts designated as cash flow hedges for the conversion of $58.4 million into New Israeli Shekels (NIS) to manage payroll and operating expenses[43] - As of September 30, 2022, the notional amounts of the Company's outstanding exchange forward contracts not designated as hedging instruments were $58.2 million, resulting in a gain of $2.9 million for the three-month period ended September 30, 2022[43] Inventory and Expenses - Inventory as of September 30, 2022, was $170.4 million, an increase from $129.1 million as of December 31, 2021, reflecting a growth of 32.0%[29] - The company incurred approximately $27.4 million in expenses related to intangible assets for the nine months ended September 30, 2022, compared to $23.0 million for the same period in 2021[33] - The estimated amortization expense for intangible assets for the remaining three months of 2022 is projected to be $9.8 million[34] Deferred Revenue and Obligations - Deferred revenues increased to $4,860 for the nine months ended September 30, 2022, compared to $3,470 in the prior year[11] - Remaining Performance Obligations (RPO) totaled $103.6 million as of September 30, 2022, with an expectation to recognize $77.5 million within the next 12 months[26] - Deferred revenue as of September 30, 2022, was $72.3 million, slightly up from $72.3 million as of December 31, 2021[25]