Business in Brief: Stratasys Plunges After Earnings Disappointments

PhotoMedex sells unit it bought a year ago; Frutarom buys a U.K. firm; TASE advanced, in line with world markets.

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Radiation emission from cellular antennas tends to fluctuate.
Radiation emission from cellular antennas tends to fluctuate.Credit: Hagay Frid
TheMarker
TheMarker

Stratasys plunges after earnings disappointments

Shares of Stratasys plunged on Tuesday after the 3D-printer maker forecast revenue and adjusted profit for the full year below expectations. The company pegged its net loss at $10 million to $23 million, or 20 cents to 45 cents a share, on revenue of $940 million to $960 million for 2015. It forecast an adjusted profit of $2.07 to $2.24 a share, below analysts’ expectations for $2.91 a share and revenue of $1.01 billion, according to a poll by Thomson Reuters I/B/E/S. Stratasys said profit would be weighed down as it stepped up investment in manufacturing and customer relationships, aiming to boost sales to $3 billion by 2020. Operating costs in 2015 will be 46% to 47% of revenue, with capital expenditures of as much as $200 million, it said. Stratasys also disappointed on estimated 2014 results. It said revenue ranged $748 million to $750 million and non-GAAP net income came in at $102 million to $105 million, or $1.97 to $2.03 a diluted share. Stratasys shares were down close to 34% at $53.29 in mid-morning trading in New York. (TheMarker Staff)

PhotoMedex sells chain of laser clinics one year after buying them

A year after it bought LCA-Vision, PhotoMedex said on Tuesday it is selling the unit for less than half what it paid. The maker of skin-treatment devices said it sold LCA-Vision, which operates 59 laser-eye-surgery centers in the U.S., for $40 million cash, $66 million less than it paid a year ago. Excluding working-capital adjustments and professional fees, PhotoMedex said it would realize net proceeds of about $35.3 million. “The sale of LCA-Vision allows PhotoMedex to repay certain indebtedness while providing exclusive rights to place Xtrac lasers for the treatment of psoriasis and vitiligo in LasikPlus centers, subject to negotiation with the new owners,” said Dolev Rafaeli, chief executive of PhotoMedex. The company had taken an $85 million loan to finance the sale but failed to meet the financial criteria to maintain the loan, which will now be partly repaid from the sale proceeds. Shares of PhotoMedex, which have fallen close to 90% in the past year, fell 3.1% to 6.4 shekels ($1.63). (Yoram Gabison)

Frutarom buys UK company for $3 million

Frutarom, a maker of flavors and specialty ingredients, said on Tuesday it added another acquisition to its long list, spending as much as $3 million to buy the British company FoodBlenders. Frutarom said it was paying $2.4 million and would pay as much as another $600,000 based on FoodBlenders’ performance. The transaction was completed upon signing and is being independently financed. Formed in 1998, FoodBlenders develops, produces and markets savory solutions such as spice and seasoning mixes, and sauces for the food industry. It had about $3 million in sales last year. “The global savory-flavors market is growing as a result of the rising standard of living and way of life and the accompanying changes in consumer habits which are boosting demand for processed and convenience foods,” said CEO Ori Yehudai. Frutarom closed up 3.1% to 124.7 shekels ($31.79). (TheMarker Staff)

Shares end higher as Greek crisis cools

Tel Aviv shares ended higher on Tuesday, in line with stock markets worldwide, after Greece dropped calls for a write-down of its foreign debt, easing concerns about growing instability in the euro zone. The TA-25 index rose 0.6% to a close of 1,455.27 points while the TA-100 advanced 0.7% to 1,277.70, on turnover of 1.17 billion shekels ($300 million). Telecom stocks rallied on news that a price war was coming to a halt. Partner Communications jumped 13% to 14.28 shekels, Cellcom Israel added 12% to 21.88 and Bezeq rose 7.2% to end at 6.9. Discount Investment Corp. rose 12% to a 6.79-shekel closing. But Pluristem slumped 10% to 11.24 shekels, a second big day of losses that came close to wiping out its rally last week. A Bloomberg News report questioned an analyst recommendation last week that boosted the share price. (Dror Reich)

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