Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | STRATASYS LTD. |
Entity Central Index Key | 0001517396 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 366,327 | $ 393,167 |
Accounts receivable, net | 131,546 | 138,146 |
Inventories | 147,799 | 123,524 |
Prepaid expenses | 8,117 | 6,398 |
Other current assets | 29,686 | 22,936 |
Total current assets | 683,475 | 684,171 |
Non-current assets | ||
Property, plant and equipment, net | 189,794 | 188,150 |
Goodwill | 385,803 | 385,849 |
Other intangible assets, net | 96,001 | 107,274 |
Operating lease right-of-use assets | 23,399 | |
Other non-current assets | 18,891 | 22,810 |
Total non-current assets | 713,888 | 704,083 |
Total assets | 1,397,363 | 1,388,254 |
Current liabilities | ||
Accounts payable | 54,662 | 45,855 |
Current portion of long-term debt | 5,143 | |
Accrued expenses and other current liabilities | 29,942 | 39,115 |
Accrued compensation and related benefits | 29,572 | 31,703 |
Deferred revenues | 54,298 | 53,965 |
Operating lease liabilities - short term | 9,106 | |
Total current liabilities | 177,580 | 175,781 |
Non-current liabilities | ||
Long-term debt | 22,000 | |
Deferred revenues - long-term | 16,652 | 18,422 |
Operating lease liabilities - long term | 14,702 | |
Other non-current liabilities | 31,409 | 29,084 |
Total non-current liabilities | 62,763 | 69,506 |
Total liabilities | 240,343 | 245,287 |
Contingencies (see note 11) | ||
Redeemable non-controlling interests | 742 | 852 |
Equity | ||
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 54,344 thousands shares and 53,881 thousands shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 147 | 146 |
Additional paid-in capital | 2,695,622 | 2,681,048 |
Accumulated other comprehensive loss | (7,047) | (7,753) |
Accumulated deficit | (1,532,444) | (1,531,326) |
Total equity | 1,156,278 | 1,142,115 |
Total liabilities and equity | $ 1,397,363 | $ 1,388,254 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares shares in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in NIS per share) | ₪ 0.01 | ₪ 0.01 |
Common stock, shares authorized | 180,000 | 180,000 |
Common stock, shares issued | 54,344 | 53,881 |
Common stock, shares outstanding | 54,344 | 53,881 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net sales | ||||
Total net sales | $ 163,163 | $ 170,236 | $ 318,463 | $ 324,069 |
Cost of sales | ||||
Total cost of sales | 81,996 | 86,589 | 160,839 | 164,772 |
Gross profit | 81,167 | 83,647 | 157,624 | 159,297 |
Operating expenses | ||||
Research and development, net | 24,040 | 23,689 | 46,614 | 48,799 |
Selling, general and administrative | 56,322 | 61,887 | 113,476 | 118,892 |
Total operating expenses | 80,362 | 85,576 | 160,090 | 167,691 |
Operating income (loss) | 805 | (1,929) | (2,466) | (8,394) |
Financial income (expense), net | 1,755 | (83) | 2,508 | (75) |
Income (loss) before income taxes | 2,560 | (2,012) | 42 | (8,469) |
Income tax expenses | 1,280 | 205 | 2,498 | 806 |
Share in profit (losses) of associated companies | (195) | (1,360) | 1,228 | (7,433) |
Net income (loss) | 1,085 | (3,577) | (1,228) | (16,708) |
Net loss attributable to non-controlling interests | (67) | (26) | (110) | (116) |
Net income (loss) attributable to Stratasys Ltd. | $ 1,152 | $ (3,551) | $ (1,118) | $ (16,592) |
Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||
Basic | $ 0.02 | $ (0.08) | $ (0.02) | $ (0.33) |
Diluted | $ 0.02 | $ (0.08) | $ (0.02) | $ (0.33) |
Weighted average ordinary shares outstanding. | ||||
Basic | 54,231 | 53,722 | 54,102 | 53,689 |
Diluted | 54,687 | 53,722 | 54,102 | 53,689 |
Comprehensive income (loss) | ||||
Net income (loss) | $ 1,085 | $ (3,577) | $ (1,228) | $ (16,708) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (17) | (3,222) | (444) | (1,211) |
Unrealized gains (losses) on derivatives designated as cash flow hedges | 155 | (544) | 1,150 | (869) |
Other comprehensive income (loss), net of tax | 138 | (3,766) | 706 | (2,080) |
Comprehensive income (loss) | 1,223 | (7,343) | (522) | (18,788) |
Less: comprehensive loss attributable to non-controlling interests | (67) | (26) | (110) | (116) |
Comprehensive income (loss) attributable to Stratasys Ltd. | 1,290 | (7,317) | (412) | (18,672) |
Products [Member] | ||||
Net sales | ||||
Total net sales | 110,341 | 118,403 | 215,432 | 222,320 |
Cost of sales | ||||
Total cost of sales | 47,095 | 53,262 | 91,264 | 98,480 |
Services [Member] | ||||
Net sales | ||||
Total net sales | 52,822 | 51,833 | 103,031 | 101,749 |
Cost of sales | ||||
Total cost of sales | $ 34,901 | $ 33,327 | $ 69,575 | $ 66,292 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Ordinary Shares [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Equity Attributable to Stratasys Ltd. [Member] | Non-controlling Interest [Member] | Total | |
Beginning Balance at Dec. 31, 2017 | $ 145 | $ 2,663,274 | $ (1,523,906) | $ (7,023) | $ 1,132,490 | $ 17 | $ 1,132,507 | |
Beginning Balance (in shares) at Dec. 31, 2017 | 53,631 | |||||||
Cumulative effect of changes in accounting principles | 3,544 | 3,544 | 3,544 | |||||
Issuance of shares in connection with stock-based compensation plans | [1] | 334 | 334 | 334 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 79 | |||||||
Stock-based compensation | 3,415 | 3,415 | 3,415 | |||||
Comprehensive income (loss) | (13,041) | 1,686 | (11,355) | (34) | (11,389) | |||
Ending Balance at Mar. 31, 2018 | $ 145 | 2,667,023 | (1,533,403) | (5,337) | 1,128,428 | (17) | 1,128,411 | |
Ending Balance (in shares) at Mar. 31, 2018 | 53,710 | |||||||
Issuance of shares in connection with stock-based compensation plans | $ 1 | 38 | 39 | 39 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 19 | |||||||
Stock-based compensation | 4,278 | 4,278 | 4,278 | |||||
Purchase of redeemable non-controlling interests | (935) | (935) | (935) | |||||
Comprehensive income (loss) | (3,551) | (3,766) | (7,317) | $ 17 | (7,300) | |||
Ending Balance at Jun. 30, 2018 | $ 146 | 2,670,404 | (1,536,954) | (9,103) | 1,124,493 | 1,124,493 | ||
Ending Balance (in shares) at Jun. 30, 2018 | 53,729 | |||||||
Beginning Balance at Dec. 31, 2018 | $ 146 | 2,681,048 | (1,531,326) | (7,753) | 1,142,115 | 1,142,115 | ||
Beginning Balance (in shares) at Dec. 31, 2018 | 53,881 | |||||||
Issuance of shares in connection with stock-based compensation plans | [1] | 2,222 | 2,222 | 2,222 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 167 | |||||||
Stock-based compensation | 4,229 | 4,229 | 4,229 | |||||
Comprehensive income (loss) | (2,270) | 568 | (1,702) | (1,702) | ||||
Ending Balance at Mar. 31, 2019 | $ 146 | 2,687,499 | (1,533,596) | (7,185) | 1,146,864 | 1,146,864 | ||
Ending Balance (in shares) at Mar. 31, 2019 | 54,048 | |||||||
Issuance of shares in connection with stock-based compensation plans | $ 1 | 2,030 | 2,031 | 2,031 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 296 | |||||||
Stock-based compensation | 6,093 | 6,093 | 6,093 | |||||
Comprehensive income (loss) | 1,152 | 138 | 1,290 | 1,290 | ||||
Ending Balance at Jun. 30, 2019 | $ 147 | $ 2,695,622 | $ (1,532,444) | $ (7,047) | $ 1,156,278 | $ 1,156,278 | ||
Ending Balance (in shares) at Jun. 30, 2019 | 54,344 | |||||||
[1] | Represents an amount less than 0.5 thousand |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (1,228) | $ (16,708) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 25,063 | 30,612 |
Stock-based compensation | 10,322 | 7,693 |
Foreign currency transaction loss (gain) | (1,603) | 3,215 |
Deferred income taxes | (1,123) | (1,902) |
Share in (profits) losses of associated companies | (1,228) | 7,433 |
Gain from sale of unconsolidated entity | (3,578) | |
Other non-cash items, net | 903 | 799 |
Change in cash attributable to changes in operating assets and liabilities: | ||
Accounts receivable, net | 6,372 | 8,944 |
Inventories | (27,128) | (3,983) |
Net investment in sales-type leases | 1,801 | 4,262 |
Other current assets and prepaid expenses | (6,390) | (4,334) |
Other non-current assets | 3,875 | (567) |
Accounts payable | 8,812 | 7,658 |
Other current liabilities | (12,798) | (2,046) |
Deferred revenues | (1,357) | 1,768 |
Other non-current liabilities | 122 | (2,746) |
Net cash provided by operating activities | 837 | 40,098 |
Cash flows from investing activities | ||
Purchase of property and equipment | (10,423) | (12,403) |
Investment in unconsolidated entities | (7,862) | |
Purchase of intangible assets | (800) | (634) |
Proceeds from sale of plant and property | 129 | 4,105 |
Proceeds from sale of subsidiaries and unconsolidated entity | 4,909 | |
Other investing activities | (385) | (347) |
Net cash used in investing activities | (6,570) | (17,141) |
Cash flows from financing activities | ||
Repayment of debt | (27,293) | (2,572) |
Proceeds from exercise of stock options | 4,252 | 1,036 |
Acquisition of redeemable non-controlling interests | (1,500) | |
Net cash used in financing activities | (23,041) | (3,036) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,697 | (2,001) |
Net change in cash, cash equivalents and restricted cash | (27,077) | 17,920 |
Cash, cash equivalents and restricted cash, beginning of period | 393,734 | 329,359 |
Cash, cash equivalents and restricted cash, end of period | 366,657 | 347,279 |
Supplemental disclosures of cash flow information: | ||
Transfer of fixed assets to inventory | 127 | 156 |
Transfer of inventory to fixed assets | $ 2,614 | $ 1,150 |
Business Description and Basis
Business Description and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Note 1. Business Description and Basis of Presentation Stratasys Ltd. (collectively with its subsidiaries, the “Company”) is a global provider of applied additive technology solutions for a broad range of industries. The Company focuses on customers’ business requirements and seeks to create new value for its customers across their product lifecycle processes, from design prototypes to manufacturing tools and final production parts. The Company operates a 3D printing ecosystem of solutions and expertise, comprised of: 3D printers ranging from entry-level desktop 3D printers to systems for rapid prototyping (“RP”) and large production systems for direct digital manufacturing (“DDM”) based on precise fused deposition modeling (“FDM”) and PolyJet technologies; advanced materials for use The condensed consolidated interim financial statements include the accounts of Stratasys Ltd. and its subsidiaries. All intercompany accounts and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. The consolidated interim financial information herein is unaudited; however, such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. The reader is referred to the audited consolidated financial statements and notes thereto for the year ended December 31, 2018, filed with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s Annual Report on Form 20-F for such year on March 7, 2019. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | Note 2. New Accounting Pronouncements Accounting Pronouncements Adopted in the Current Period In June 2018, the Financial Accounting Standards Board (“FASB”) issued a new Accounting Standards Update (“ASU”) which substantially aligns the measurement and classification guidance for share-based payments to non-employees with the guidance for share-based payments to employees. That ASU also clarifies that any share-based payment issued to a customer should be evaluated based upon the new revenue recognition standard. The new ASU required a modified retrospective transition approach. The Company adopted this guidance effective January 1, 2019, which has not had a material impact on its consolidated financial statements. In August 2017, the FASB issued an ASU which simplifies the designation and measurement requirements of hedge accounting in certain situations and allows companies to better align their hedge accounting with their risk management activities. The ASU also eases certain hedge effectiveness assessment requirements, expands the eligibility of hedging strategies that may qualify for hedge accounting and modifies certain presentation and disclosure requirements. The Company adopted this guidance effective January 1, 2019, which has not had a material impact on its consolidated financial statements. In February 2016, the FASB issued a new ASU which amended its lease accounting guidance. Under the new lease accounting guidance, lessees are required to recognize a right-of-use asset and a lease liability for all leases, including leases classified as operating leases. The lease liability and the right-of-use asset are measured based on the present value of the lease payments. In addition, disclosures of qualitative and quantitative information about leasing arrangements are required. The new lease accounting guidance also contains amended guidance regarding the identification of embedded leases in service contracts and the identification of lease and non-lease components of an arrangement. The Company adopted the new lease accounting guidance on January 1, 2019, using a modified retrospective transition approach, with certain practical expedients, and as a result did not adjust prior periods. Following the adoption, the Company recognized right-of-use assets of $27.4 million and lease liabilities of $27.9 million for its operating leases. The Company does not have material finance leases. The new lease accounting guidance had no material impact on the Company's Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and no material impact on the Condensed Consolidated Statements of Cash Flows. The Company determines whether an arrangement contains a lease at the inception of a contract. If an arrangement is a lease, the Company determines whether it is an operating lease or a finance lease. The Company's lease terms include all non-cancelable periods and may include options to extend the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company elected the short-term lease recognition exemption for all leases with terms shorter than twelve months. The right-of-use assets represent the Company's right to control the use of an underlying asset for the lease term. The lease liabilities represent the present value of the Company's future lease payments over the expected lease term, which is determined using the Company's incremental borrowing rate at the lease commencement date. This rate is determined considering factors such as the lease term, credit standing and the economic environment of the location of the lease. The Company's leases primarily relate to buildings for the Company’s administrative, research and development, sales and marketing, and manufacturing activities, as well as vehicles leases. As of June 30, 2019, the weighted average remaining lease term for the Company’s leases was 3.3 years 4.7% Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued an ASU that clarifies the accounting for implementation costs in cloud computing arrangements. This ASU requires the implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customers in a software licensing arrangement. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In June 2016, the FASB issued an ASU that supersedes the existing impairment model for most financial assets to a current expected credit loss model. The new guidance requires an entity to recognize an impairment allowance equal to its current estimate of all contractual cash flows the entity does not expect to collect. The ASU also requires that credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenues | Note 3. Revenues Disaggregation of Revenues The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and six Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (U.S. $ in thousands) (U.S. $ in thousands) Americas Products $ 67,137 $ 67,193 $ 125,191 $ 117,437 Service 40,888 39,597 79,332 77,267 Total Americas 108,025 106,790 204,523 194,704 EMEA Products 23,323 29,948 51,408 61,929 Service 6,826 7,279 13,524 14,269 30,149 37,227 64,932 76,198 Asia Pacific Products 19,881 21,262 38,833 42,954 Service 5,108 4,957 10,175 10,213 24,989 26,219 49,008 53,167 Total Revenues $ 163,163 $ 170,236 $ 318,463 $ 324,069 The following table presents the Company’s revenues disaggregated based on the timing of revenue recognized for the three and six Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (U.S. $ in thousands) (U.S. $ in thousands) Revenues recognized in point in time from: Products $ 110,341 $ 118,403 $ 215,432 $ 222,320 Services 10,747 11,059 21,374 21,137 Total revenues recognized in point in time 121,088 129,462 236,806 243,457 Revenues recognized over time from: Services 42,075 40,774 81,657 80,612 Total revenues recognized over time 42,075 40,774 81,657 80,612 Total Revenues $ 163,163 $ 170,236 $ 318,463 $ 324,069 Contract Assets and Contract Liabilities Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of June 30, 2019 Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of June 30, 2019 and December 31, 2018 were as follows: June 30, December 31, 2019 2018 U.S. $ in thousands Deferred revenue* 70,950 72,387 *Includes $16.7 million and $18.4 million under long term deferred revenue in the Company's consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively. Revenue recognized in 2019 that was included in deferred revenue balance as of January 1, 2019 was $14.1 million and $31.9 million for the three and six months ended June 30, 2019, respectively. Remaining Performance Obligations Remaining Performance Obligations ("RPO") represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2019, the total RPO amounted to 91.1 million. The Company expects to recognize $71.7 million of this RPO during the next 12 months, $13.6 million over the subsequent 12 months and $5.7 million in the remainder thereafter. Incremental Costs of Obtaining a Contract Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of June 30, 2019 and December 31, 2018, the deferred commission amounted to $3.5 million and $3.1 million respectively |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventories consisted of the following: June 30, December 31, 2019 2018 U.S. $ in thousands Finished goods $ 73,852 $ 61,391 Work-in-process 3,600 2,616 Raw materials 70,347 59,517 147,799 123,524 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of the Company’s goodwill for the six-months ended June 30, 2019 were as follows: U.S. $ in thousands Goodwill as of January 1, 2019 $ 385,849 Foreign currency translation adjustments (46) Goodwill as of June 30, 2019 $ 385,803 During the fourth quarter of 2018, the Company performed a quantitative assessment for goodwill impairment for its Stratasys-Objet reporting unit. Following its quantitative assessment, the Company concluded that the fair value of its Stratasys-Objet reporting unit exceeded its carrying amount by approximately 8%, with a carrying amount of goodwill assigned to this reporting unit in an amount of $386 million. When evaluating the fair value of its Stratasys-Objet reporting unit the Company used a discounted cash flow model which utilized Level 3 measures that represent unobservable inputs into the valuation method. Key assumptions used to determine the estimated fair value include: (a) expected cash flows for five years following the assessment date which were based on, among other factors, expected revenue growth, costs to produce, operating profit margins and estimated capital needs; (b) an estimated terminal value that utilized a terminal year growth rate of 3.1% that was determined based on the growth prospects of the reporting unit; and (c) a discount rate of 14.0% based on management’s best estimate of the after-tax weighted average cost of capital. If any of these were to vary materially from the Company's estimates, the Company could face impairment of goodwill allocated to this reporting unit in the future. Actual results may differ from those assumed in the Company's valuation method. It is reasonably possible that the Company's assumptions described above could change in future periods. If any of these were to vary materially from the Company's plans, it may record impairment of goodwill allocated to this reporting unit in the future. A hypothetical decrease in the growth rate of 1% or an increase of 1% to the discount rate would have reduced the fair value of Stratasys-Objet reporting unit by approximately $48 million and $80 million, respectively. Based on the Company’s assessment as of December 31, 2018, no goodwill was determined to be impaired. During the second quarter of 2019 the Company reaffirmed that no significant events or circumstances occurred that contradict the assumptions and data used in the annual impairment test performed in the fourth quarter of 2018. Determining the fair value of the Stratasys-Objet reporting unit requires significant judgment, including judgments about the appropriate discount rates, terminal growth rates, weighted average costs of capital and the amount and timing of projected future cash flows. The Company will continue to monitor the fair value of its Stratasys-Objet reporting unit to determine whether events and changes in circumstances such as a deterioration in the business climate or operating results, significant decline in the Company's share price, changes in management’s business strategy or downward changes of the Company's cash flows projections, warrant further interim impairment testing. Other Intangible Assets Other intangible assets consisted of the following: June 30, 2019 December 31, 2018 Carrying Amount, Net Carrying Amount, Net Net of Accumulated Book Net of Accumulated Book Impairment Amortization Value Impairment Amortization Value U.S. $ in thousands Developed technology $ 299,100 $ (244,256 ) $ 54,844 $ 299,100 $ (236,375 ) $ 62,725 Patents 11,022 (6,193 ) 4,829 10,127 (5,752 ) 4,375 Trademarks and trade names 26,239 (19,650 ) 6,589 26,212 (19,067 ) 7,145 Customer relationships 102,984 (73,473 ) 29,511 102,984 (70,353 ) 32,631 Capitalized software development costs 19,541 (19,313 ) 228 19,540 (19,142 ) 398 $ 458,886 $ (362,885 ) $ 96,001 $ 457,963 $ (350,689 ) $ 107,274 Amortization expense relating to intangible assets for the three-month periods ended June 30, 2019 and 2018 was approximately $6.0 million and $8.0 million, respectively. Amortization expense relating to intangible assets for the six-month periods ended June 30, 2019 and 2018 was approximately $12.1 million and $16.1 million, respectively. As of June 30, 2019, the estimated amortization expense relating to intangible assets for Remaining 6 months of 2019 $ 12,128 2020 23,983 2021 23,823 2022 23,730 Thereafter 12,337 Total 96,001 |
Income (Loss) Per Share
Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Net income (loss) per ordinary share attributable to Stratasys Ltd. | |
Income (Loss) Per Share | Note 6. Income (Loss) Per Share The following table presents the numerator and denominator of the basic and diluted net income (loss) per share computations for the three and six months ended June 30, 2019 and 2018: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 In thousands, except per share amounts In thousands, except per share amounts Numerator: Net income (loss) attributable to Stratasys Ltd. $ 1,152 $ (3,551 ) $ (1,118 ) $ (16,592 ) Adjustment of redeemable non-controlling interest to redemption amount - (935 ) - (935 ) Net income (loss) attributable to Stratasys Ltd. for basic and diluted loss per share 1,152 (4,486 ) (1,118 ) (17,527 ) Denominator: Weighted average shares Basic 54,231 53,722 54,102 53,689 Diluted 54,687 53,722 54,102 53,689 Net income (loss) per share attributable to Stratasys Ltd. Basic $ 0.02 $ (0.08 ) $ (0.02 ) $ (0.33 ) Diluted $ 0.02 $ (0.08 ) $ (0.02 ) $ (0.33 ) The computation of diluted net loss per share excluded share awards of 4.7 million shares and 4.1 million shares for the six months ended June 30, 2019 and 2018, respectively, because their inclusion would have had an anti-dilutive effect on the diluted net loss per share. The computation of diluted net income (loss) per share excluded share awards of 3.5 million shares and 4.1 million shares for the three months ended June 30, 2019 and 2018, respectively, because their inclusion would have had an anti-dilutive effect on the diluted net income (loss) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes The Company had income tax expenses of $1.3 million for the three-month period ended June 30, 2019 compared to income to income . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements Financial instruments measured at fair value The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets: June 30, 2019 December 31, 2018 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 192 $ 374 Foreign exchange forward contracts designated as hedging instruments 522 - Liabilities: Foreign exchange forward contracts not designated as hedging instruments (160 ) (196 ) Foreign exchange forward contracts designated as hedging instruments - (628 ) $ 554 $ (450 ) The Company’s foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs). Other financial instruments consist mainly of cash and cash equivalents, current and non-current receivables, net investment in sales-type leases, bank loan, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values. |
Derivative instruments and hedg
Derivative instruments and hedging activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | Note 9. Derivative instruments and hedging activities Since the Company conducts its operations globally, it is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), Euro, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount June 30, December 31, June 30, December 31, Balance sheet location 2019 2018 2019 2018 U.S. $ in thousands Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 192 $ 374 $ 27,397 $ 34,695 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 522 - 17,528 - Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (160 ) (196 ) 74,367 54,425 Liability derivatives -Foreign exchange contracts, designated as hedging instruments Accrued expenses and other current liabilities - (628 ) - 41,303 $ 554 $ (450 ) $ 119,292 $ 130,423 As of June 30, 2019, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $101.8 million, and were used to reduce foreign currency exposures. With respect to such derivatives, $0.0 million and gain of $3.3 million were recognized under financial income (expense) (expense) (expense) As of June 30, 2019, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of $17.5 million into NIS. The Company uses short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs denominated in NIS. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss. These contracts mature through December 2019. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Note 10. Equity a. Stock-based compensation plans Stock-based compensation expenses for equity-classified stock options, restricted share units ("RSUs") and performance stock units ("PSUs") were allocated as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 U.S $ in thousands U.S $ in thousands Cost of sales $ 541 $ 442 $ 895 $ 829 Research and development, net 1,511 938 2,270 1,680 Selling, general and administrative 4,041 2,898 7,157 5,184 Total stock-based compensation expenses $ 6,093 $ 4,278 $ 10,322 $ 7,693 A summary of the Company’s stock option activity for the six months ended June 30, 2019 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of January 1, 2019 2,551,743 $ 30.82 Exercised (195,468 ) 21.75 Forfeited (176,764 ) 24.63 Options outstanding as of June 30, 2019 2,179,511 $ 32.14 Options exercisable as of June 30, 2019 1,570,615 $ 36.69 During the six-month periods ended June 30, 2019 and 2018, the Company issued 195,468 shares and 20,596 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $4.3 million and $0.4 As of June 30, 2019, the unrecognized compensation cost of $5.6 million related to all unvested, equity-classified stock options is expected to be recognized as an expense over a weighted-average period of 1.6 years. A summary of the Company’s RSUs and PSUs activity for the six months ended June 30, 2019 is as follows: Weighted Average Nu mber of RSUs and PS Us Grant Date Fair Value Unvested as of January 1, 2019 1,422,887 $ 20.17 Granted 1,541,482 26.58 Vested (267,840 ) 20.43 Forfeited (163,644 ) 21.02 Unvested as of June 30, 2019 2,532,885 $ 23.99 The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant. As of June 30, 2019, the unrecognized compensation cost of $51.3 million related to all unvested, equity-classified RSUs and PSUs is expected to be recognized as expense over a weighted-average period of 3.1 years. b. Accumulated other comprehensive loss The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the six months ended June 30, 2019 and 2018, respectively: Six months ended June 30, 2019 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2019 $ (627 ) $ (7,126 ) $ (7,753 ) Other comprehensive income (loss) before reclassifications 1,277 (444 ) 833 Amounts reclassified from accumulated other comprehensive loss (127 ) - (127 ) Other comprehensive income (loss) 1,150 (444 ) 706 Balance as of June 30, 2019 $ 523 $ (7,570 ) $ (7,047 ) Six months ended June 31, 2018 Net unrealized gain Foreign currency (loss) on cash flow translation Hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2018 $ 330 $ (7,353 ) $ (7,023 ) Other comprehensive income (loss) before reclassifications (903 ) (1,306 ) (2,209 ) Amounts reclassified from accumulated other comprehensive loss 34 95 129 Other comprehensive income (loss) (869 ) (1,211 ) (2,080 ) Balance as of June 30, 2018 $ (539 ) $ (8,564 ) $ (9,103 ) |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 11. Contingencies Patent Law-Based Claim On November 23, 2017, a former employee, whose employment had been terminated by the Company in 2008 and who had previously unsuccessfully filed a suit against the Company, brought an additional proceeding against the Company under Section 134 of the Israeli Patent Law seeking compensation and royalties for service inventions he invented while he served as an employee of the Company. In this new proceeding, the former employee claims to be entitled to receive royalties in an amount equal to: (a) 20% of the benefits, revenues and /or savings generated by the Company in the past and in the future, including the rise in the value of the Company, as determined in the merger with Stratasys Inc., which took place in December 2012; (b) 20% of the gross profit generated by the Company in the past and 9% of the gross profit produced and that will be produced by the Company; (c) 20% of the gross profit generated by the Company in the past and the relative share of the former Objet entity of the Company in the total gross profit produced and that will be produced by the Company; or (d) 20% of the value of the service inventions at issue. The former employee further sought an order of accounts. The Company rejects the claims that serve as a basis for the proceeding and is defending against them vigorously. The Company is a party to various other legal proceedings, the outcome of which, in the opinion of management, will not have a significant adverse effect on the financial position or profitability of the Company. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregation of Revenues | The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and six Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (U.S. $ in thousands) (U.S. $ in thousands) Americas Products $ 67,137 $ 67,193 $ 125,191 $ 117,437 Service 40,888 39,597 79,332 77,267 Total Americas 108,025 106,790 204,523 194,704 EMEA Products 23,323 29,948 51,408 61,929 Service 6,826 7,279 13,524 14,269 30,149 37,227 64,932 76,198 Asia Pacific Products 19,881 21,262 38,833 42,954 Service 5,108 4,957 10,175 10,213 24,989 26,219 49,008 53,167 Total Revenues $ 163,163 $ 170,236 $ 318,463 $ 324,069 |
Schedule of Disaggregation of Revenues Based on Time | The following table presents the Company’s revenues disaggregated based on the timing of revenue recognized for the three and six Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (U.S. $ in thousands) (U.S. $ in thousands) Revenues recognized in point in time from: Products $ 110,341 $ 118,403 $ 215,432 $ 222,320 Services 10,747 11,059 21,374 21,137 Total revenues recognized in point in time 121,088 129,462 236,806 243,457 Revenues recognized over time from: Services 42,075 40,774 81,657 80,612 Total revenues recognized over time 42,075 40,774 81,657 80,612 Total Revenues $ 163,163 $ 170,236 $ 318,463 $ 324,069 |
Schedule of Changes in Deferred Revenue | The Company's deferred revenues as of June 30, 2019 and December 31, 2018 were as follows: June 30, December 31, 2019 2018 U.S. $ in thousands Deferred revenue* 70,950 72,387 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: June 30, December 31, 2019 2018 U.S. $ in thousands Finished goods $ 73,852 $ 61,391 Work-in-process 3,600 2,616 Raw materials 70,347 59,517 147,799 123,524 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of the Company’s goodwill for the six-months ended June 30, 2019 were as follows: U.S. $ in thousands Goodwill as of January 1, 2019 $ 385,849 Foreign currency translation adjustments (46) Goodwill as of June 30, 2019 $ 385,803 |
Schedule of Other Intangible Assets | Other intangible assets consisted of the following: June 30, 2019 December 31, 2018 Carrying Amount, Net Carrying Amount, Net Net of Accumulated Book Net of Accumulated Book Impairment Amortization Value Impairment Amortization Value U.S. $ in thousands Developed technology $ 299,100 $ (244,256 ) $ 54,844 $ 299,100 $ (236,375 ) $ 62,725 Patents 11,022 (6,193 ) 4,829 10,127 (5,752 ) 4,375 Trademarks and trade names 26,239 (19,650 ) 6,589 26,212 (19,067 ) 7,145 Customer relationships 102,984 (73,473 ) 29,511 102,984 (70,353 ) 32,631 Capitalized software development costs 19,541 (19,313 ) 228 19,540 (19,142 ) 398 $ 458,886 $ (362,885 ) $ 96,001 $ 457,963 $ (350,689 ) $ 107,274 |
Schedule of Estimated Amortization Expense Relating to Intangible Assets | As of June 30, 2019, the estimated amortization expense relating to intangible assets for Remaining 6 months of 2019 $ 12,128 2020 23,983 2021 23,823 2022 23,730 Thereafter 12,337 Total 96,001 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net income (loss) per ordinary share attributable to Stratasys Ltd. | |
Schedule of Basic and Diluted Income (Loss) Per Share | The following table presents the numerator and denominator of the basic and diluted net income (loss) per share computations for the three and six months ended June 30, 2019 and 2018: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 In thousands, except per share amounts In thousands, except per share amounts Numerator: Net income (loss) attributable to Stratasys Ltd. $ 1,152 $ (3,551 ) $ (1,118 ) $ (16,592 ) Adjustment of redeemable non-controlling interest to redemption amount - (935 ) - (935 ) Net income (loss) attributable to Stratasys Ltd. for basic and diluted loss per share 1,152 (4,486 ) (1,118 ) (17,527 ) Denominator: Weighted average shares Basic 54,231 53,722 54,102 53,689 Diluted 54,687 53,722 54,102 53,689 Net income (loss) per share attributable to Stratasys Ltd. Basic $ 0.02 $ (0.08 ) $ (0.02 ) $ (0.33 ) Diluted $ 0.02 $ (0.08 ) $ (0.02 ) $ (0.33 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Carried at Fair Value on a Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets: June 30, 2019 December 31, 2018 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 192 $ 374 Foreign exchange forward contracts designated as hedging instruments 522 - Liabilities: Foreign exchange forward contracts not designated as hedging instruments (160 ) (196 ) Foreign exchange forward contracts designated as hedging instruments - (628 ) $ 554 $ (450 ) |
Derivative instruments and he_2
Derivative instruments and hedging activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet classification and fair values of derivative instruments | The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount June 30, December 31, June 30, December 31, Balance sheet location 2019 2018 2019 2018 U.S. $ in thousands Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 192 $ 374 $ 27,397 $ 34,695 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 522 - 17,528 - Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (160 ) (196 ) 74,367 54,425 Liability derivatives -Foreign exchange contracts, designated as hedging instruments Accrued expenses and other current liabilities - (628 ) - 41,303 $ 554 $ (450 ) $ 119,292 $ 130,423 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Share-based Compensation Expense | Stock-based compensation expenses for equity-classified stock options, restricted share units ("RSUs") and performance stock units ("PSUs") were allocated as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 U.S $ in thousands U.S $ in thousands Cost of sales $ 541 $ 442 $ 895 $ 829 Research and development, net 1,511 938 2,270 1,680 Selling, general and administrative 4,041 2,898 7,157 5,184 Total stock-based compensation expenses $ 6,093 $ 4,278 $ 10,322 $ 7,693 |
Summary of Stock Options Activity | A summary of the Company’s stock option activity for the six months ended June 30, 2019 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of January 1, 2019 2,551,743 $ 30.82 Exercised (195,468 ) 21.75 Forfeited (176,764 ) 24.63 Options outstanding as of June 30, 2019 2,179,511 $ 32.14 Options exercisable as of June 30, 2019 1,570,615 $ 36.69 |
Summary of RSUs and PSUs activity | A summary of the Company’s RSUs and PSUs activity for the six months ended June 30, 2019 is as follows: Weighted Average Nu mber of RSUs and PS Us Grant Date Fair Value Unvested as of January 1, 2019 1,422,887 $ 20.17 Granted 1,541,482 26.58 Vested (267,840 ) 20.43 Forfeited (163,644 ) 21.02 Unvested as of June 30, 2019 2,532,885 $ 23.99 |
Schedule of Accumulated other comprehensive income (loss) | The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the six months ended June 30, 2019 and 2018, respectively: Six months ended June 30, 2019 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2019 $ (627 ) $ (7,126 ) $ (7,753 ) Other comprehensive income (loss) before reclassifications 1,277 (444 ) 833 Amounts reclassified from accumulated other comprehensive loss (127 ) - (127 ) Other comprehensive income (loss) 1,150 (444 ) 706 Balance as of June 30, 2019 $ 523 $ (7,570 ) $ (7,047 ) Six months ended June 31, 2018 Net unrealized gain Foreign currency (loss) on cash flow translation Hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2018 $ 330 $ (7,353 ) $ (7,023 ) Other comprehensive income (loss) before reclassifications (903 ) (1,306 ) (2,209 ) Amounts reclassified from accumulated other comprehensive loss 34 95 129 Other comprehensive income (loss) (869 ) (1,211 ) (2,080 ) Balance as of June 30, 2018 $ (539 ) $ (8,564 ) $ (9,103 ) |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
New Accounting Pronouncements | |
Right-of-use assets | $ 27.4 |
Lease liabilities | $ 27.9 |
Weighted average remaining lease term | 3 years 3 months 19 days |
Weighted-average discount rate | 4.71% |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |||
Revenue recognized | $ 14,100 | $ 31,900 | |
Deferred revenue noncurrent portion | 16,652 | 16,652 | $ 18,422 |
Remaining performance obligations | 91,100 | 91,100 | |
Expected remaining performance obligations recognized during next 12 months | 71,700 | 71,700 | |
Expected remaining performance obligations recognized subsequent to next 12 months | 13,600 | 13,600 | |
Expected remaining performance obligations recognized remainder thereafter | 5,700 | 5,700 | |
Deferred sales commissions | $ 3,500 | $ 3,500 | $ 3,100 |
Revenues (Schedule of Disaggreg
Revenues (Schedule of Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 163,163 | $ 170,236 | $ 318,463 | $ 324,069 |
Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 110,341 | 118,403 | 215,432 | 222,320 |
Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 52,822 | 51,833 | 103,031 | 101,749 |
Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 108,025 | 106,790 | 204,523 | 194,704 |
Americas [Member] | Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 67,137 | 67,193 | 125,191 | 117,437 |
Americas [Member] | Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 40,888 | 39,597 | 79,332 | 77,267 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 30,149 | 37,227 | 64,932 | 76,198 |
EMEA [Member] | Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 23,323 | 29,948 | 51,408 | 61,929 |
EMEA [Member] | Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 6,826 | 7,279 | 13,524 | 14,269 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 24,989 | 26,219 | 49,008 | 53,167 |
Asia Pacific [Member] | Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 19,881 | 21,262 | 38,833 | 42,954 |
Asia Pacific [Member] | Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 5,108 | $ 4,957 | $ 10,175 | $ 10,213 |
Revenues (Schedule of Disaggr_2
Revenues (Schedule of Disaggregation of Revenues Based on Time) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 163,163 | $ 170,236 | $ 318,463 | $ 324,069 |
Revenues recognized in point in time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 121,088 | 129,462 | 236,806 | 243,457 |
Revenues recognized over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 42,075 | 40,774 | 81,657 | 80,612 |
Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 110,341 | 118,403 | 215,432 | 222,320 |
Products [Member] | Revenues recognized in point in time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 110,341 | 118,403 | 215,432 | 222,320 |
Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 52,822 | 51,833 | 103,031 | 101,749 |
Services [Member] | Revenues recognized in point in time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 10,747 | 11,059 | 21,374 | 21,137 |
Services [Member] | Revenues recognized over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 42,075 | $ 40,774 | $ 81,657 | $ 80,612 |
Revenues (Schedule of Changes i
Revenues (Schedule of Changes in Deferred Revenue) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |||
Deferred revenue | [1] | $ 70,950 | $ 72,387 |
[1] | Includes $16.7 million and $18.4 million under long term deferred revenue in the Company's consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 73,852 | $ 61,391 |
Work-in-process | 3,600 | 2,616 |
Raw materials | 70,347 | 59,517 |
Total Inventory | $ 147,799 | $ 123,524 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of intangible assets | $ 6,000 | $ 8,000 | $ 12,100 | $ 16,100 | |
Goodwill | $ 385,803 | $ 385,849 | $ 385,803 | ||
Stratasys-Objet reporting unit [Member] | |||||
Expected cash flow period | 5 years | ||||
Growth rate (as a percent) | 3.10% | ||||
Discount rate (as a percent) | 14.00% | ||||
Percentage of decrease in terminal year growth rate | 1.00% | ||||
Percentage of increase in terminal year growth rate | 1.00% | ||||
Percentage of fair value exceeding carrying value of reporting units | 8.00% | ||||
Goodwill | $ 386,000 | ||||
Change in fair value due to 1% decrease in terminal year growth rate | 48,000 | ||||
Change in fair value due to 1% increase in terminal year growth rate | $ 80,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill as of January 1, 2019 | $ 385,849 |
Foreign currency translation adjustments | (46) |
Goodwill as of June 30, 2019 | $ 385,803 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 458,886 | $ 457,963 |
Accumulated Amortization | (362,885) | (350,689) |
Net Book Value | 96,001 | 107,274 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 299,100 | 299,100 |
Accumulated Amortization | (244,256) | (236,375) |
Net Book Value | 54,844 | 62,725 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,022 | 10,127 |
Accumulated Amortization | (6,193) | (5,752) |
Net Book Value | 4,829 | 4,375 |
Trademarks and trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26,239 | 26,212 |
Accumulated Amortization | (19,650) | (19,067) |
Net Book Value | 6,589 | 7,145 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 102,984 | 102,984 |
Accumulated Amortization | (73,473) | (70,353) |
Net Book Value | 29,511 | 32,631 |
Capitalized software development costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,541 | 19,540 |
Accumulated Amortization | (19,313) | (19,142) |
Net Book Value | $ 228 | $ 398 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense Relating to Intangible Assets) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 6 months of 2019 | $ 12,128 |
2020 | 23,983 |
2021 | 23,823 |
2022 | 23,730 |
Thereafter | 12,337 |
Total | $ 96,001 |
Income (Loss) Per Share (Narrat
Income (Loss) Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||
Antidilutive securities excluded from computation of net loss per share | 3.5 | 4.1 | 4.7 | 4.1 |
Income (Loss) Per Share (Schedu
Income (Loss) Per Share (Schedule of Basic and Diluted Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income (loss) attributable to Stratasys Ltd. | $ 1,152 | $ (3,551) | $ (1,118) | $ (16,592) |
Adjustment of redeemable non-controlling interest to redemption amount | (935) | (935) | ||
Net income (loss) attributable to Stratasys Ltd. for basic and diluted loss per share | $ 1,152 | $ (4,486) | $ (1,118) | $ (17,527) |
Weighted average shares | ||||
Basic | 54,231 | 53,722 | 54,102 | 53,689 |
Diluted | 54,687 | 53,722 | 54,102 | 53,689 |
Net income (loss) per share attributable to Stratasys Ltd. | ||||
Basic | $ 0.02 | $ (0.08) | $ (0.02) | $ (0.33) |
Diluted | $ 0.02 | $ (0.08) | $ (0.02) | $ (0.33) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expenses | $ 1,280 | $ 205 | $ 2,498 | $ 806 |
Fair Value Measurement (Schedul
Fair Value Measurement (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset (liabilities) | $ 554 | $ (450) |
Foreign Exchange Future [Member] | Recurring [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 192 | 374 |
Derivative liabilities | (160) | (196) |
Foreign Exchange Future [Member] | Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 522 | |
Derivative liabilities | $ (628) |
Derivative instruments and he_3
Derivative instruments and hedging activities (Narrative) (Details) ₪ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019ILS (₪) | |
Derivatives, Fair Value [Line Items] | |||||
Notional amount of derivative asset | $ 101.8 | $ 101.8 | |||
Gain (Loss) on derivative instrument | $ 0 | $ 3.3 | $ 1.2 | $ 1 | |
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Conversion To NIS [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of derivative asset | ₪ | ₪ 17.5 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities (Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | $ 101,800 | |
Fair value | 554 | $ (450) |
Notional amount | 119,292 | 130,423 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 192 | 374 |
Notional amount of derivative asset | 27,397 | 34,695 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued expenses and other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (160) | (196) |
Notional amount of derivative liability | 74,367 | 54,425 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other current assets [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 522 | |
Notional amount of derivative asset | 17,528 | |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other current liabilities [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (628) | |
Notional amount of derivative liability | $ 41,303 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options exercised | 195,468 | 20,596 |
Increase in equity | $ 4.3 | $ 0.4 |
Unrecognized compensation cost | $ 5.6 | |
Weighted average period for recognition | 1 year 7 months 6 days | |
RSUs and PSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 51.3 | |
Weighted average period for recognition | 3 years 1 month 6 days |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | $ 6,093 | $ 4,278 | $ 10,322 | $ 7,693 |
Cost of sales [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 541 | 442 | 895 | 829 |
Research and development, net [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 1,511 | 938 | 2,270 | 1,680 |
Selling, general and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | $ 4,041 | $ 2,898 | $ 7,157 | $ 5,184 |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Option Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Options | ||
Balance, beginning | 2,551,743 | |
Exercised | (195,468) | (20,596) |
Forfeited | (176,764) | |
Balance, ending | 2,179,511 | |
Exercisable | 1,570,615 | |
Weighted Average Exercise Price | ||
Balance, beginning | $ 30.82 | |
Exercised | 21.75 | |
Forfeited | 24.63 | |
Balance, ending | 32.14 | |
Exercisable | $ 36.69 |
Equity (Summary of RSUs and PSU
Equity (Summary of RSUs and PSUs Activity) (Details) - RSUs and PSUs [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of RSUs and PSUs | |
Unvested RSUs outstanding, beginning | shares | 1,422,887 |
Granted | shares | 1,541,482 |
Vested | shares | (267,840) |
Forfeited | shares | (163,644) |
Unvested RSUs and PSUs outstanding, ending | shares | 2,532,885 |
Weighted Average Grant Date Fair Value | |
Unvested RSUs outstanding, beginning | $ / shares | $ 20.17 |
Granted | $ / shares | 26.58 |
Forfeited | $ / shares | 20.43 |
Vested | $ / shares | 21.02 |
Unvested RSUs and PSUs outstanding, ending | $ / shares | $ 23.99 |
Equity (Schedule of Accumulated
Equity (Schedule of Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning of period | $ (7,753) | $ (7,023) |
Other comprehensive income (loss) before reclassifications | 833 | (2,209) |
Amounts reclassified from accumulated other comprehensive loss | (127) | 129 |
Other comprehensive income (loss) | 706 | (2,080) |
Balance as of end of period | (7,047) | (9,103) |
Net unrealized gain (loss) on cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning of period | (627) | 330 |
Other comprehensive income (loss) before reclassifications | 1,277 | (903) |
Amounts reclassified from accumulated other comprehensive loss | (127) | 34 |
Other comprehensive income (loss) | 1,150 | (869) |
Balance as of end of period | 523 | (539) |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning of period | (7,126) | (7,353) |
Other comprehensive income (loss) before reclassifications | (444) | (1,306) |
Amounts reclassified from accumulated other comprehensive loss | 95 | |
Other comprehensive income (loss) | (444) | (1,211) |
Balance as of end of period | $ (7,570) | $ (8,564) |