Leading 3D printer manufacturer Stratasys has officially released its financial report for the 3rd quarter of 2016. Despite a slight decrease in revenue margins, the $970 million company has secured improved operating income.
In the 3rd quarter, Stratasys secured a total revenue of $157.2 million, 6% less than the 3rd quarter of the previous year. Although it struggled to increase its total revenue, the company significantly reduced its operating loss and improved the overall financial stability of the company.
Last quarter, Stratasys reported an operating loss of $19.4 million. In the same time period last year, the company reported an operating loss of $931.3, showing significant improvement in their revenue margins and monetization of their products and services. The net loss for the quarter was estimated to be $20.8 million, which again, compared to the 2015 3rd quarter’s $901.3 million net loss demonstrated essential financial recovery.
For investors, the ability of Stratasys to drastically decrease its operating costs and maximize its revenue margins is optimistic, as turning profit in the industry of 3D printing is difficult. Due to the sheer amount of capital and resources that are allocated in the development of 3D printers, without securing a large clientèle with high demand for professional and enterprise-grade 3D printers, it is virtually impossible to break even with costs.
Recently, however, Stratasys has managed to secure some crucial deals that have allowed the company to distribute and sell its enterprise-grade printers at a larger scale.
Airbus has long considered the implementation and integration of 3D printing technology to enhance its manufacturing process and optimize the distribution phase. The partnership with Stratasys allowed Airbus to create aircraft parts on demand, without having to rely on its global manufacturers that require weeks to months for the development and delivery of aircraft parts.
“In 2014 Airbus produced a significant amount of parts on its Stratasys FDM-based 3D Printers for use in new A350 XWB aircraft, enabling Airbus to meet delivery commitments on-time. We are pleased to support Airbus as they industrialize the inclusion of Stratasys 3D printed parts in the A350 XWB production supply chain, ensuring that suppliers will be able to support continued scheduled aircraft deliveries,” said Andy Middleton, President, Stratasys EMEA in October
The multi-million deal with Airbus and the company’s other partnerships with multi-billion dollar corporations like Siemens led Stratasys to secure a broader clientèle and increase its revenue streams. Apart from its corporate partnerships and revenues, Stratasys also collaborated with processionals and educators to launch and ship new MakerBot 3D printers, which can be used without extensive knowledge in the 3D printing technology.
The efforts of Stratasys in pursuing commercial products and mainstream 3D printing services enabled the company to reach a new group of consumers that have contributed in improving the financial health of the company. Discuss in the Stratasys forum at 3DPB.com.
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