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The Ticker / Stratasys Shares Plummet on Nasdaq

Markstone withholds part of bond repayment, Radcom revenues rally, TASE follows Wall Street up.

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Stratasys played a key role in crafting costumes for the 2014 blockbuster “Guardians of the Galaxy."
Stratasys played a key role in crafting costumes for the 2014 blockbuster “Guardians of the Galaxy." Credit: Disney-Marvel via AP

Stratasys, the Rehovot-based 3-D printing technology firm, saw its share price on the Nasdaq exchange plummet by 28% on Tuesday after the company issued an earnings warning for 2014 and forecast 2015 earnings that were below the estimates of analysts. The company’s next reporting date is March 2. In the wake of the share price collapse, Milberg LLP, a New York-based law firm that specializes in class actions, announced that it is investigating whether Stratasys, in its public statements to investors, violated U.S. federal securities laws. In its earnings warning, Stratasys, which has roots in Minnesota and merged with an Israeli company, Objet, forecast net earnings per share for 2014 in the $1.93 to $2.03 range. Analysts had been predicting per share earnings of around $2.16. Most of the shortfall is being attributed to a $100 million to $110 million write-off on the company’s acquisition of 3-D home printer manufacturer MakerBot. (Dror Reich)

Markstone holds back part of bond repayment

Markstone, the embattled private equity fund, this week paid bondholders of two companies it controls less than they were due, saying it was deducting what it said were unjustified legal charges by bondholders and banks. Phenomenal and New Phenomenal Holdings, which control Markstone’s minority stake in Psagot Investment House, were due to pay 10.1 million shekels ($2.6 million), but paid out just 8.5 million shekels. Markstone said the balance constituted nuisance legal expenses it was forced to pay for legal proceedings undertaken by Guy Gissin, an attorney representing the bondholders. Even the 8.5- million-shekel payment is frozen for now, pending legal action against Phenomenal and Phenomenal Holdings. The two companies owe an additional 90 million shekels to bondholders and as much as 350 million shekels to banks. (Michael Rochvarger)

Radcom revenue jumped 15% in 2014

Radcom, the Tel Aviv-based network testing company whose services including improving cellular connections, on Wednesday reported revenues of $23.6 million for 2014, a 15% increase over 2013. The results beat analysts’ forecasts. It had (non-GAAP) net profits of $3.3 million for the year, compared to a loss of $900,000 the year before. The improved picture follows a shift by the company from reliance on hardware products to a new software product called MaveriQ. (Omri Zerachovitz)

Tel Aviv stocks up on Wall Street gains

Trading on the Tel Aviv Stock Exchange was in positive territory for the most part on Wednesday, encouraged by gains on Wall Street on Tuesday. The benchmark TA-25 index rose by 0.13% to 1,457.18 points while the broader TA-100 index gained 0.15%, climbing to 1,279.56 points. The communications index dropped 3.6% Wednesday, after jumping by 8% on Tuesday. Trading volume was around 1.2 billion shekels ($308 million). The dollar slumped 0.9% on the day to a representative rate of 3.894 shekels. Among the standouts was plant technology firm Evogen, shares of which jumped 6%. Energy shares, including Avner Oil Exploration, Ratio Oil Exploration and the Delek Group, also rose, by between 2.1% and 2.2%. (Eran Azran)

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