SOURCE: Pomerantz, LLP

April 03, 2015 14:23 ET

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders With Losses on Their Investment in Stratasys Ltd. of Class Action Lawsuit and Upcoming Deadline - SSYS

NEW YORK, NY--(Marketwired - Apr 3, 2015) - Pomerantz LLP has filed a class action lawsuit against Stratasys Ltd. ("Stratasys" or the "Company") (NASDAQ: SSYS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-945, is on behalf of a class consisting of all persons or entities who purchased Stratasys securities between May 9, 2014 and February 2, 2015, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act"). 

If you are a shareholder who purchased Stratasys securities during the Class Period, you have until April 6, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.

Stratasys manufactures three-dimensional (or "3D") printers and describes itself as a leading global provider of additive manufacturing solutions.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, defendants repeatedly issued positive statements regarding MakerBot and its products. For example, on May 9, 2014, the Company stated that "MakerBot branded products and services contributed $20.6 million to first quarter revenue, a 79% increase over the revenue that MakerBot generated as an independent company during the first quarter of 2013." The Company also highlighted that day that it had begun "shipping the new MakerBot Replicator 3D Printer, and announced the availability of the MakerBot Replicator Mini Compact 3D Printer and MakerBot Replicator Z18 3D Printer for preorder, with shipping expected before the end of the second quarter." As the Class Period went on, Stratasys significantly raised its 2014 financial guidance to $750 to $770 million.

On February 2, 2015, the Company issued a warning that its fourth quarter fiscal 2014 revenue would miss analysts' expectations, largely based on problems with its MakerBot unit. The February 2, 2015 announcement revealed that the Company was taking a $100 to $110 million impairment charge to the goodwill value of the recently acquired MakerBot, pointing to slower growth of MakerBot products and services revenue, including "challenges associated with the introduction and scaling of its new product platform [the 5th Generation Replicator 3D printers and 3D printing ecosystem] and the Company's rapidly evolving distribution model." MakerBot's revenue, which makes up 12% of the Company's total revenue, grew only 7% year-over-year in the fourth quarter, coming up well below the growth level seen in prior quarters.

Stratasys also announced that revenue for the full year 2014 would be between $748 million and $750 million, lower than the $764 million analysts had been modeling and below prior guidance of $750 million to $770 million. Although fourth quarter revenues increased by 38%, that growth also fell short of analyst expectations of 49% growth, meaning fourth quarter revenue would be approximately $214 million, below consensus estimates of $230.8 million. Adjusted earnings per share for 2014 fell short as well, with the Company reporting EPS of $1.97 to $2.03, versus prior guidance of $2.21 to $2.31 and consensus estimates of $2.25.

For 2015, the Company announced that it expected adjusted earnings per share of $2.07 to $2.24, which fell far short of analyst and market expectations of $2.90. The Company also forecast 2015 revenues of $940 million to $960 million, also short of market expectations of $1 billion. The reduced forecast implied slower organic growth.

In response to the Company's unexpected earnings miss, weak forecast, impairment charge, and newly revealed problems with MakerBot, the price of Stratasys common stock dropped suddenly. After closing at $80.08 per share on February 2, 2015, the stock opened trading at $57.00 per share on February 3, 2015, ultimately falling $22.72 per share, or 28%, to close at $57.36 per share

The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

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