EDEN PRAIRIE, Minn. – Stratasys Ltd. (NASDAQ: NASDAQ:SSYS), a leader in 3D printing solutions, has announced a strategic partnership with AM Craft, a pioneer in aviation manufacturing. The collaboration aims to enhance the production and demand for flight-certified 3D printed parts within the aviation industry. As part of this agreement, Stratasys will make a strategic investment in AM Craft.
AM Craft, which holds an EASA Part 21G Production Organization Approval, addresses a critical challenge in the aviation sector by providing airworthiness certified parts to airlines, MROs, and OEMs. The partnership is expected to leverage AM Craft's certification capabilities and Stratasys's expertise in additive manufacturing to overcome supply chain issues in the aviation aftermarket.
Jeff Hemenway, Senior Vice President at Stratasys, emphasized the importance of additive manufacturing in meeting the unique demands of the aviation industry for low volume, high mix part production. AM Craft's EASA-approved certification process is seen as a key advantage for customers in the industry.
AM Craft's CEO, Didzis Dejus, noted that the partnership would strengthen customer confidence in their ability to supply necessary parts and would benefit from Stratasys's leadership in the field.
The partnership will also see AM Craft taking over the operations of Stratasys's subsidiary, Additive Flight Solutions (AFS) in Singapore, and planning to establish a new facility in Hamburg later this year. This expansion will extend AM Craft's production network to Southeast Asia and add to their existing capacity in Europe.
Together, the partners operate 13 printers under EASA 21G approval, having produced over 28,000 flight parts to date. Future collaboration may involve Stratasys Direct Manufacturing in the US.
Scott Sevcik, AM Craft VP of Strategy and Business Development, highlighted the global nature of aviation and the advantage of localized production that the partnership with Stratasys and Additive Flight Solutions will offer.
Both companies anticipate that their combined efforts will further accelerate the adoption of additive manufacturing in the aviation industry, presenting new growth opportunities.
This partnership is based on a press release statement and signifies a significant step in advancing the production of certified 3D printed parts for the aviation sector.
In other recent news, Stratasys Ltd., a leader in 3D printing, reported a slight decline in its first-quarter revenue for 2024, amounting to $144.1 million, a 3.5% decrease from the same period last year. Despite this, the company maintained its full-year revenue guidance and highlighted a record high in consumables recurring revenue.
Stratasys also reported a robust gross margin expansion to 44.4%. Recent developments include the introduction of the F3300 printer and new SAF HighDef printing capabilities, along with the promotion of Amir Kleiner to COO. The company's GAAP net loss was reported at $26 million, with a non-GAAP net loss of $1.7 million.
For the full year, Stratasys expects revenues between $630 million to $645 million, with gross margins anticipated to be between 49% to 49.5%. The company also forecasts a GAAP net loss of $88 million to $72 million and a non-GAAP net income of $9 million to $14 million.
InvestingPro Insights
Stratasys Ltd. (NASDAQ: SSYS) has recently made headlines with its strategic partnership with AM Craft, signaling a strong move towards innovation in aviation manufacturing. Still, what does the financial data say about the company's current standing? Here are some insights based on real-time data from InvestingPro.
InvestingPro Data shows a market capitalization of $583.95M, indicating a moderate size within the technology sector. The company's P/E Ratio stands at -4.47, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at -5.29, reflecting the market's expectations of future earnings growth despite recent losses. Moreover, Stratasys holds a Price / Book ratio of 0.67, suggesting that the stock may be undervalued relative to its assets.
On the performance side, the company has seen a 1 Month Price Total Return of -8.5%, and a more significant 3 Month Price Total Return of -28.23%, which aligns with an InvestingPro Tip that the stock has fallen significantly over the last three months.
Despite these recent downturns, InvestingPro Tips highlight that Stratasys holds more cash than debt on its balance sheet, and analysts predict the company will be profitable this year, which are critical factors for potential investors considering the long-term prospects of the company.
InvestingPro also provides additional insights, with 10 more tips available for Stratasys, which can be accessed at https://www.investing.com/pro/SSYS. For readers looking to delve deeper into the company's financials and future outlook, they can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive view of the investment landscape surrounding Stratasys and the broader market.
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