| Zacks.com Stratasys Inc. (NasdaqGS: SSYS - News) reported third-quarter earnings of 9 cents per share, exceeding the Zacks Consensus Estimate of 6 cents per share.
Revenues
The company reported third-quarter revenues of $24.3 million, down 20.6% from $30.6 million reported in the year-ago quarter. The decline in sales can be attributed to a substantial reduction in product sales compared to the year-ago quarter. Segment wise, Product sales generated $18.0 million in revenue, down 24.7% from $23.9 million reported in the year-ago quarter. Service revenue for the quarter was $6.3 million, down 4.5% from $6.6 million reported in the year-ago quarter.
Operating results Gross profit was $11.9 million (or 48.9% of revenue), compared to $15.8 million (or 51.7% of revenue) in the year-ago quarter. The decline in gross margin was the result of revenue decline at a higher rate than the cost of goods sold. Operating income for the quarter was $2.4 million (or 9.9% of revenue), compared to $5.3 million (or 17.3% of revenue) in the year-ago quarter. Although operating expenses declined 9.9%, it failed to make up the decline in revenue. The company reported net income of $1.6 million in the third quarter, or 8 cents per share, compared to net income of $3.7 million, or 18 cents per share in the same period last year. Excluding certain discrete items and stock-based compensation expense, non-GAAP net income was $1.8 million, or 9 cents per share in the third quarter, compared to $4 million, or 19 cents per share, in the same period last year. Balance Sheet The company generated $8.7 million cash flow from operations at the end of the third quarter as a result of efficient management of working capital. The company exited the quarter with cash, cash equivalent and short term investments of $47.2 million. The company does not have any long term debt. Guidance Stratasys did not provide any revenue guidance for the fourth quarter, but believes that although the near-term economic outlook remains challenging, there are positive signs within its sales channel. We are cautiously optimistic about its performance in the fourth quarter.
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