Stratasys' (NASDAQ:SSYS) acquisition of Objet makes it the largest 3-D printing equipment manufacturer in the professional market. As synergies between the two companies continue to accelerate, investors are seeing the improved revenue results.
Stratasys this morning reported $126.1 million in non-generally accepted accounting principles revenue for the third quarter, a 39% increase over last year's Stratasys and Objet pro forma combined. Excluding MakerBot, it posted organic revenue growth of 26%. That led to non-GAAP earnings of $0.45 per share that topped analyst expectations of $0.42 per share and last year's earnings per share of $0.41.
Stratasys also introduced two new systems during this period, the Solidscape 3Z MAX 3D printer and the MakerBot Digitizer Desktop 3D Scanner. Stratasys invested a net amount of $12 million, or 9.5% of sales, into research and development in the third quarter. It also had cash, investments, and bank deposits balance at the end of the quarter of $616.5 million, or $12.65 per share.
The company's overall outlook has improved for the fourth quarter of 2013, leading management to raise its fiscal-year revenue guidance from $455 million-$480 million to $470 million-$490 million.
"With the completion of the MakerBot acquisition in the third quarter, we believe Stratasys is now the clear leader in the desktop 3D printer category, one of the fastest growing segments within our industry," Stratasys CEO David Reis said in a press release. "The third quarter also demonstrated our commitment to internal product development, as well as our goal of expanding our global customer reach. In addition, as the mainstream adoption of 3D printing continues to gain momentum, we have strengthened our balance sheet, improving our ability to capitalize on additional growth initiatives and acquisitions."