Today, Stratasys (NASDAQ:SSYS) reported a non-GAAP net income of $25.8 million in the fourth quarter, or $0.50 per share, an improvement of 25% over the $0.40 per share, or $16.3 million in net income, seen in the fourth quarter of last year. The company also grew its organic revenue by 36% and its total revenue by 62% as a result of stronger demand across all of its product lines. Shares were down more than 2% as of 11 a.m.
"Our fourth quarter results reflect the ongoing realization of revenue synergies from the Stratasys-Objet merger, as well as the rapidly growing demand for additive manufacturing and 3D printing solutions we are observing worldwide," said the CEO of Stratasys, David Reis, in a statement. "We experienced strong organic growth driven by demand across multiple product lines, as well as an impressive contribution from MakerBot."
On a generally accepted accounting principles (GAAP) basis, Stratasys reported a net loss of $0.04 per share in the fourth quarter, which was an improvement over the $0.09 net loss seen in the fourth quarter of last year. The company also reported a loss of $0.64 per share for the full year in 2013, versus an income of $0.37 per share in 2012.
Stratasys' non-GAAP margins expanded, and its gross margin was 60.2% in the fourth quarter, a gain of 2.4 percentage points over the 57.8% reported in the same period last year. In addition, its operating margin grew one percentage point to 20.2%.
Reis said that "a favorable product mix benefited margins, and helped contribute to our record profits. We are very pleased with our fourth quarter and overall annual results." The company generated almost $25 million in revenue from MarketBot. Stratasys touted MakerBot's "highly affordable and functional desktop 3D printers."
In addition, Stratasys gave its guidance for the full year of 2014, saying it expects revenue between $660 million and $680 million, which would be an improvement of more than 35% over the $484 million in 2013. It also expects a non-GAAP net income of $2.15 to $2.25 per share, which would be an improvement of 10% over the $1.95 seen in 2013.
"We have positive momentum, driven by the ongoing demand for our industry-leading products and services," Reis concluded. "We are pleased with our many recent new product introductions and channel initiatives, which we believe will greatly improve 3D printing accessibility and drive expanded usage for our products."