Stratasys Ltd. SSYS reported first-quarter 2016 adjusted loss per share (excluding amortization, impairment and other one-time items but including stock-based compensation) of 6 cents, which compared favourably with the Zacks Consensus Estimate of a loss of 15 cents per share.Also, the company’s quarterly loss was narrower than the year-ago loss of 8 cents per share.Quarter DetailsThough Stratasys’ revenues declined 2.8% year over year to $167.9 million, it surpassed the Zacks Consensus Estimate of $164 million. Product revenues were down 6.3% from the year-ago quarter to $118.6 million. However, revenues from Services increased 6.9% year over year to $49.3 million. The company’s soft revenue performance reflects weak performance at its MakerBot business.Stratasys stated that revenues from the MakerBot business plunged 23% on a year-over-year basis. The decline was primarily due to softness in overall market conditions.Stratasys’ adjusted gross margin (excluding amortization and other one-time expenses but including share-based compensation) expanded 160 basis points (bps) to 54.6%, primarily due to favourable product mix and lower cost of sales.The company’s adjusted operating expenses decreased 8.5% year over year to $93.4 million, primarily due to a lower cost structure. Also, as a percentage of revenues, operating expenses decreased year over year from 59.1% to 55.6%. The decrease was primarily due to lower research and development expenses and selling, general and administrative expenses.The company posted adjusted operating loss of $1.7 million in the reported quarter compared with adjusted operating loss of $10.5 million a year ago mainly due to lower expenses as a percentage of revenues.The adjusted net loss (excluding amortization, impairment and other one-time items but including stock-based compensation) of approximately $2.8 million compared favourably with a loss of $4.3 million reported in the year-ago quarter.The company exited the quarter with cash and cash equivalents and short-term bank deposits of $280.2 million compared with $258.2 million in the previous quarter. Inventories came in at approximately $124.5 million compared with $123.7 million in the fourth quarter. The company does not have any long-term debt.GuidanceStratasys reiterated its fiscal 2016 guidance. The company expects revenues in a range of $700 million to $730 million (mid-point $715 million). The midpoint of the guidance is much above the Zacks Consensus Estimate of $709 million. Non-GAAP income per share is projected between 17 cents and 43 cents. Currently, the Zacks Consensus Estimate is pegged at a loss of 21 cents.Further, the company expects gross margin to be in a range of 54% to 55%. Operating margin is expected to be in a range of 3% to 5%.Capital expenditure is expected to be in a range of $60 million to $70 million.ConclusionStratasys reported better-than-expected first-quarter results and provided an encouraging fiscal 2016 guidance. However, year-over-year revenue comparisons were unfavourable. The company’s quarterly results were negatively impacted by difficult market conditions and lower-than-expected performance at its MakerBot business.Moreover, some customers are delaying their purchases owing to the current economic conditions. In the 3D printer business, the majority of customers have moved toward the lower-priced uPrint, which may affect the company’s margins in the upcoming quarters. Going forward, competition from 3D Systems Corporation DDD is also a potent headwind.Currently, Stratasys carries a Zacks Rank #3 (Hold).A couple of better-ranked stocks in the technology sector are Aspen Technology, Inc. AZPN and TiVo Inc. TIVO, both of which carry a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TIVO INC (TIVO): Free Stock Analysis Report ASPEN TECH INC (AZPN): Free Stock Analysis Report STRATASYS LTD (SSYS): Free Stock Analysis Report 3D SYSTEMS CORP (DDD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research