And we see and I have plenty of storage on those. And when they are starting this new cycle, they are looking at additives. So those are the milestone macro-wise and buying, I would say leading manufacturer. Each one of them has its own story. But if it goes to electric vehicle or it goes to a new airplane or a new rocket or whatever, we are there. And this is the place where we can shine. Why as Stratasys we can shine? Because they are looking at digital manufacturing in their new journey. And this is what we have done for the last, almost four years. We develop the best solution for real polymer manufacturing. You take the SAF — and we do it by the way in two directions. One is the best building blocks, hardware materials, software, and the other one is the tailoring of those building blocks into real solution per use cases.
So you take the SAF, we believe this is the best cost per part in the industry. The best cost per part, you can do bulk parts, no one else can do them and then we take them to machine component, this is a use case and you will see that we would be more and more in those machine component. You take the P3, the part properties are unique, accuracy is unique. So we target connectors and we have unique results there. You take FDM. We have proven use cases in spare parts, Aero and auto, and as you see it also in [indiscernible] and tooling. This is not one machine, not two machines, we’re talking about hundreds of machines that are doing it already. We take PolyJet, we took them to use cases. We are transforming the PolyJet from prototyping into use cases which are real manufacturing like dentures and removable dentures, you take the Neo Stereolithography.
We are focusing on investment casting. We are focusing on wind tunnels. For example, F1, the majority of F1 player using our material and our machine. So the direction is clear. What you need to look when you look at the future and the milestone is that we are making progress in those manufacturing use cases, and we do it through digital solution. And by the way, we are using a lot of AI Index because we want to make sure that there is accuracy there and also in the F3300 by the way, we — it’s a new suite of sensors and we make sure that those sensors, we capture the data and we will leverage the AI solution that we developed together with the [indiscernible] guys to improve the part quality.
Ananda Baruah: That’s a lot of super helpful context. I really appreciate that. I’ll cede the floor there because I’m sure there’s more questions. And that was really helpful. Thanks so much.
Yoav Zeif: Thank you.
Eitan Zamir: Thank you.
Operator: Thank you. Your next question is coming from Brian Drab from William Blair. Your line is now live.
Unidentified Analyst: Good morning. This is Tyler on for Brian. Appreciate you guys taking my questions. I just wanted to start it with, you guys mentioned that you had record, high recurring consumables revenue and obviously there’s a lot of printer utilization. Can you just touch on what end markets you’re seeing the greatest utilization in?
Yoav Zeif: So — Great question. So we have five technologies and what we have done over the last three years is that we make sure that we are matching the hardware with the best material portfolio. So there was no one in the industry has a larger polymer materials portfolio than Stratasys. So we started with FDM and PolyJet then we acquired Covestro and Covestro brought to us also the Stereolithography, liquid resin, some DLP liquid resin. That’s one of them we already launched, an amazing new material with unique ability outside in tough weather and also powder. So the strategy is very clear. We did a full solution, we make sure we have enough recurring revenue and that’s the place of the material. So when we look at the material, we want to make sure that we have material that are tougher, stronger with the right properties manufacturing because we have a clear solid strategy.
We need also the material to support this strategy and this is where we see also the increase in demand. We are less focusing on rapid prototyping. Although we are spending quite a lot there, but we are focusing on real manufacturing. So this is the direction and manufacturing is, by definition, four to five times more consumption, what we call unit economic. More consumption per unit per machine than rapid prototyping. So there — this is the place we see the growing demand.
Unidentified Analyst: Appreciate the color on that. Just a quick question for the Covestro acquisition, was that about $5 million in revenue for the quarter?
Eitan Zamir: Yeah. As we mentioned in the past, the run rate for Covestro is roughly $20 million a year. And this quarter it was roughly $4.5 million impact on the quarter.
Unidentified Analyst: Okay, I appreciate that. I’ll pass it on.
Operator: Your next question is coming from Jacob Stephan from Lake Street Capital. Your line is now live.
Jacob Stephan: Yeah. Hey, guys, thanks for taking my questions. I just kind of want to focus on the divestitures you made here in the quarter. You know, I guess I’m just trying to get a sense on, you noted, they were running at kind of an operating loss. How much can we kind of expect operating margin next year?
Yoav Zeif: Hi, Jacob. Welcome to the team of analyst.
Jacob Stephan: Yeah. Thank you.
