Stratasys Announces Strategic Resizing to Accelerate Growth
June 02 2020 - 8:30AM
Business Wire
Measure
reflects shift to leaner operating model
Stratasys Ltd. (NASDAQ: SSYS) today announced that it is
reducing its global workforce as part of a strategic plan to
accelerate growth with a leaner operating model. This resizing,
advanced sooner due to the impact of COVID-19, will affect
approximately 10% of employees, and is designed to reduce operating
expenses as part of a cost realignment program to focus on
profitable growth. The company expects the vast majority of the
reduction to take place in the second quarter and to complete the
reduction during the third quarter of this year.
“This reduction in force is a difficult but essential step in
our ongoing strategic process, designed to better position the
company for sustainable and profitable growth,” said Yoav Zeif,
Chief Executive Officer of Stratasys. “I would like to express my
appreciation to each of the employees impacted by this decision for
their dedicated service. Current conditions make the job market
even more challenging, and we have done our best to provide the
departing employees globally with a respectable and fair
separation. This measure is not expected to affect the progress on
our forthcoming product launch plans, which remain a top priority
as we lead the industry to new heights with our best-in-class
additive manufacturing solutions.”
Stratasys expects the resizing effort, in conjunction with other
cost-mitigation measures, to reduce annualized operating expenses
by approximately $30 million. The company will incur a charge of
approximately $6 million in severance costs, primarily in the
second quarter of this year.
Stratasys (Nasdaq: SSYS) is a global leader in additive
manufacturing or 3D printing technology and is the manufacturer of
FDM®, PolyJet™, and stereolithography 3D printers. The company’s
technologies are used to create prototypes, manufacturing tools,
and production parts for industries, including aerospace,
automotive, healthcare, consumer products and education. For more
than 30 years, Stratasys products have helped manufacturers reduce
product-development time, cost, and time-to-market, as well as
reduce or eliminate tooling costs and improve product quality. The
Stratasys 3D printing ecosystem of solutions and expertise includes
3D printers, materials, software, expert services, and on-demand
parts production.
To learn more about Stratasys, visit www.stratasys.com, the
Stratasys blog, Twitter, LinkedIn, or Facebook. Stratasys reserves
the right to utilize any of the foregoing social media platforms,
including the company's websites, to share material, non-public
information pursuant to the SEC's Regulation FD. To the extent
necessary and mandated by applicable law, Stratasys will also
include such information in its public disclosure filings.
Stratasys is a registered trademark and the Stratasys signet is
a trademark of Stratasys Ltd. and/or its subsidiaries or
affiliates. All other trademarks are the property of their
respective owners.
Cautionary Statement Regarding Forward-Looking
Statements
The statements in this press release regarding the expected
impact and results that Stratasys' ongoing strategic process and
updated operating model will have on its future financial and
business performance, are forward-looking statements reflecting
management's current expectations and beliefs. These
forward-looking statements are based on current information that
is, by its nature, subject to rapid and even abrupt change. Due to
risks and uncertainties associated with Stratasys' business, actual
results could differ materially from those projected or implied by
these forward-looking statements. These risks and uncertainties
include, but are not limited to: the degree of our success at
introducing new or improved products and solutions that gain market
share; the degree of growth of the 3D printing market generally;
the duration of the global COVID-19 pandemic, which, if extensive,
may continue to impact, in a material adverse manner, our
operations, financial position and cash flows, and those of our
customers and suppliers; the impact of potential shifts in the
prices or margins of the products that we sell or services that we
provide, including due to a shift towards lower-margin products or
services; the impact of competition and new technologies; potential
further charges against earnings that we could be required to take
due to impairment of additional goodwill or other intangible
assets; to the extent of our success at successfully consummating
acquisitions or investments in new businesses, technologies,
products or services; potential changes in our management and board
of directors; global market, political and economic conditions, and
in the countries in which we operate in particular (including risks
related to the impact of coronavirus on our operations, supply
chain, liquidity, cash flow and customer orders; costs and
potential liability relating to litigation and regulatory
proceedings; risks related to infringement of our intellectual
property rights by others or infringement of others' intellectual
property rights by us; the extent of our success at maintaining our
liquidity and financing our operations and capital needs; the
impact of tax regulations on our results of operations and
financial condition; and those additional factors referred to in
Item 3.D “Key Information - Risk Factors”, Item 4, “Information on
the Company”, Item 5, “Operating and Financial Review and
Prospects,” and all other parts of our Annual Report on Form 20-F
for the year ended December 31, 2019 (the “2019 Annual
Report”), which we filed with the Securities and Exchange
Commission (the “SEC”) on February 26, 2020. Readers are
urged to carefully review and consider the various disclosures made
throughout our 2019 Annual Report and the Report of Foreign Private
Issuer on Form 6-K that attaches Stratasys’ unaudited, condensed
consolidated financial statements and its review of its results of
operations and financial condition, for the quarterly period ended
March 31, 2020, which we furnished to the SEC on May 14, 2020, and
our other reports filed with or furnished to the SEC, which are
designed to advise interested parties of the risks and factors that
may affect our business, financial condition, results of operations
and prospects. Any guidance provided, and other forward-looking
statements made, in this press release are made as of the date
hereof, and Stratasys undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200602005375/en/
Stratasys Investor Relations Yonah Lloyd Vice President -
Investor Relations Yonah.Lloyd@stratasys.com
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