Stratasys Reports Third Quarter Financial Results

The company will hold a conference call to discuss its third quarter financial results on Thursday, October 29, 2009 at 8:30 a.m. (ET). The investor conference call will be available via live webcast on the Stratasys Web site at www.stratasys.com under the "Investors" tab. To participate by telephone, the domestic dial-in number is 866-783-2143, and the international dial-in is 857-350-1602. The access code is 36423313. Investors are advised to dial into the call at least ten minutes prior to the call to register.

The webcast will be available for 90 days on the "Investors" page of the Stratasys website.

(Financial tables follow)

Stratasys, Inc., Minneapolis, manufactures additive fabrication machines for prototyping and manufacturing plastic parts. The company also operates a service for part prototyping and production. According to Wohlers Report 2009, Stratasys supplied 43 percent of all additive fabrication systems installed worldwide in 2008, making it the unit market leader for the seventh consecutive year. Stratasys patented and owns the process known as FDM.® The process creates functional prototypes and end-use parts directly from any 3D CAD program, using high-performance industrial thermoplastics. The company holds more than 250 granted or pending additive fabrication patents globally. Stratasys products are used in the aerospace, defense, automotive, medical, business and industrial equipment, education, architecture, and consumer-product industries. Online at: www.Stratasys.com.

Forward Looking Statements

All statements herein that are not historical facts or that include such words as “expects,” “anticipates,” “projects,” “estimates,” “vision,” “planning” or “believes” or similar words constitute forward-looking statements covered by the safe harbor protection of the Private Securities Litigation Reform Act of 1995. Except for the historical information herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. These include statements regarding projected revenue and income in future quarters; the size of the 3D printing market; our objectives for the marketing and sale of our Dimension® 3D Printers and our FortusTM 3D Production Systems, particularly for use in direct digital manufacturing (DDM); the demand for our proprietary consumables; the expansion of our paid parts service; and our beliefs with respect to the growth in the demand for our products. Other risks and uncertainties that may affect our business include our ability to penetrate the 3D printing market; our ability to achieve the growth rates experienced in preceding quarters; our ability to introduce, produce and market new materials, such as ABSplus and ABS-M30, and the market acceptance of these and other materials; the impact of competitive products and pricing; our timely development of new products and materials and market acceptance of those products and materials; the success of our recent R&D initiative to expand the DDM capabilities of our core FDM technology; and the success of our RedEyeOnDemandTM and other paid parts services. Actual results may differ from those expressed or implied in our forward-looking statements. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligation to do so, even if our beliefs and expectations change. In addition to the statements described above, such forward-looking statements are subject to the risks and uncertainties described more fully in our reports filed or to be filed with the Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q.

Financial Tables & Non-GAAP Discussion

The information discussed within this release includes financial results that are in accordance with accounting principles generally accepted in the United States (GAAP). Certain prior year balance sheet amounts shown in the financial tables have been reclassified to conform to the current year’s presentation. In addition, certain non-GAAP financial measures have been provided that exclude certain charges and expenses. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company’s core business operations and to compare the company’s performance with prior periods. The non-GAAP financial measures primarily identify and exclude certain discrete items, such as an impairment charge for certain auction rate securities, restructuring expenses, and expenses associated with stock-based compensation required under SFAS 123R. The company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods.

This release is also available on the Stratasys Web site at www.Stratasys.com.

STRATASYS, INC.
               
CONSOLIDATED STATEMENTS OF OPERATIONS
 
                         

Three Months Ended September 30,

Nine Months Ended September 30,

2009 2008 2009 2008
      (unaudited)     (unaudited) (unaudited)     (unaudited)
 
Net sales
Product $ 18,046,184 $ 23,965,510 $ 53,197,716 $ 73,919,081
Services   6,283,212     6,603,918     18,924,759     18,632,957  
24,329,396 30,569,428 72,122,475 92,552,038
 
 
Cost of goods sold
Product 9,918,263 12,048,155 30,883,158 34,512,079
Services   2,542,879     2,706,835     8,225,489     7,553,275  
12,461,142 14,754,990 39,108,647 42,065,354
       
Gross profit 11,868,254 15,814,438 33,013,828 50,486,684
 
Operating expenses
Research and development 1,983,420 2,100,349 5,510,385 6,841,822
Selling, general and administrative   7,481,311     8,415,988     25,257,138     27,004,811  
9,464,731 10,516,337 30,767,523 33,846,633
       
Operating income 2,403,523 5,298,101 2,246,305 16,640,051
 
Other income (expense)
Interest income, net 230,429 498,831 754,695 1,646,730
Foreign currency transaction losses, net (5,930 ) (83,794 ) (169,148 ) (299,620 )
Other   (9,021 )   (33,560 )   16,780     (286,592 )
215,478 381,477 602,327 1,060,518
       
Income before income taxes 2,619,001 5,679,578 2,848,632 17,700,569
 
Income taxes   1,040,201     1,970,011     1,124,191     6,096,378  
 
Net income $ 1,578,800   $ 3,709,567   $ 1,724,441   $ 11,604,191  
 
Earnings per common share
Basic $ 0.08   $ 0.18   $ 0.09   $ 0.56  
Diluted $ 0.08   $ 0.18   $ 0.09   $ 0.54  
 

Weighted average number of common shares outstanding

Basic   20,229,357     20,616,338     20,224,889     20,829,338  
Diluted   20,231,033     21,021,417     20,233,234     21,354,073  
 
STRATASYS, INC. AND SUBSIDIARIES
       
CONSOLIDATED BALANCE SHEETS
 
             
September 30, December 31,
2009 2008
      (unaudited)      
 
ASSETS
 
Current assets
Cash and cash equivalents $ 34,993,140 $ 27,945,799
Short-term investments - held to maturity 12,207,926 4,835,055

Accounts receivable, less allowance for doubtful accounts of $1,099,442 and $1,017,521 in 2009 and 2008, respectively

20,887,758 26,539,733
Inventories 15,388,102 19,889,351

Net investment in sales-type leases, less allowance for doubtful accounts of $199,709 and $324,642 in 2009 and 2008, respectively

4,064,467 3,870,472
Prepaid expenses and other current assets 2,702,167 2,608,080
Deferred income taxes   2,168,000     2,168,000  
Total current assets   92,411,560     87,856,490  
 
Property and equipment, net   26,871,099     29,749,921  
 
Other assets
Intangible assets, net 7,886,767 8,347,200
Net investment in sales-type leases 3,560,840 4,545,977
Long-term investments - available for sale securities 1,109,250 1,109,250
Long-term investments - held to maturity 11,363,730 13,825,981
Other non-current assets   1,613,154     2,308,214  
Total other assets   25,533,741     30,136,622  
 
Total assets $ 144,816,400   $ 147,743,033  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities
Accounts payable and other current liabilities $ 8,379,196 $ 11,795,238
Unearned revenues   10,242,116     12,765,396  
Total current liabilities   18,621,312     24,560,634  
 
Non-current liabilities
Deferred tax liabilities   620,000     620,000  
Total non-current liabilities   620,000     620,000  
 
Total liabilities   19,241,312     25,180,634  
 
Commitments and contingencies
 
Stockholders' equity

Common stock, $.01 par value, authorized 30,000,000 shares, issued 25,925,503 shares as of September 30, 2009 and 25,909,603 shares as of December 31, 2008

259,255 259,096
Capital in excess of par value 92,719,350 91,611,078
Retained earnings 71,624,111 69,899,669
Accumulated other comprehensive loss (23,203 ) (203,019 )
Less cost of treasury stock, 5,687,631 shares in 2009 and 2008   (39,004,425 )   (39,004,425 )
Total stockholders' equity   125,575,088     122,562,399  
 
Total liabilities and stockholders' equity $ 144,816,400   $ 147,743,033  
 
STRATASYS, INC.
       
RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
 
                         
Non-GAAP Adjustments for the Three Months Ended September 30, 2009 Non-GAAP Adjustments for the Three Months Ended September 30, 2008
Consolidated
(unaudited)
As Reported

Stock-Based
Compensation (1)

Consolidated
(unaudited)
Non-GAAP
Consolidated
(unaudited)
As Reported

Stock-Based
Compensation (1)

Auction Rate
Security (3)

Consolidated
(unaudited)
Non-GAAP
       
 
 
Selling, general and administrative expenses $ 7,481,311   $ (238,032 ) $ 7,243,279   $ 8,415,988   $ (321,285 ) $ -   $ 8,094,703
 
Total operating expenses 9,464,731 (238,032 ) 9,226,699 10,516,337 (321,285 ) - 10,195,052
 
Operating income   2,403,523     238,032     2,641,555     5,298,101     321,285     -     5,619,386
 
Other income (loss) (9,021 ) - (9,021 ) (33,560 ) - 50,000 16,440
Total other income   215,478     -     215,478     381,477     -     50,000     431,477
 
Income before income taxes 2,619,001 238,032 2,857,033 5,679,578 321,285 50,000 6,050,863
Income taxes   1,040,201     28,000     1,068,201     1,970,011     83,000     19,000     2,072,011
 
Net income $ 1,578,800 $ 210,032 $ 1,788,832 $ 3,709,567 $ 238,285 $ 31,000 $ 3,978,852
 
Earnings per common share
Basic $ 0.08   $ 0.01   $ 0.09   $ 0.18   $ 0.01   $ 0.00   $ 0.19
Diluted $ 0.08   $ 0.01   $ 0.09   $ 0.18   $ 0.01   $ 0.00   $ 0.19
 

Weighted average number of common shares outstanding

Basic   20,229,357       20,229,357     20,616,338           20,616,338
Diluted   20,231,033       20,231,033     21,021,417           21,021,417
 
 
 
                   
Non-GAAP Adjustments for the Nine Months Ended September 30, 2009 Non-GAAP Adjustments for the Nine Months Ended September 30, 2008
      Consolidated
(unaudited)
As Reported

Stock-Based
Compensation (1)

Restructuring (2) Consolidated
(unaudited)
Non-GAAP
  Consolidated
(unaudited)
As Reported
Stock-Based
Compensation (1)
Auction Rate
Security (3)
  Consolidated
(unaudited)
Non-GAAP
 
 
Selling, general and administrative expenses $ 25,257,138   $ (670,959 ) $ (778,840 ) $ 23,807,339 $ 27,004,811   $ (956,503 ) $ -   $ 26,048,308
 
Total operating expenses 30,767,523 (670,959 ) (778,840 ) 29,317,724 33,846,633 (956,503 ) - 32,890,130
 
Operating income   2,246,305     670,959     778,840     3,696,104   16,640,051     956,503     -     17,596,554
 
Other income (loss) 16,780 - - 16,780 (286,592 ) - 440,000 153,408
Total other income   602,327     -     -     602,327   1,060,518     -     440,000     1,500,518
 
Income before income taxes 2,848,632 670,959 778,840 4,298,431 17,700,569 956,503 440,000 19,097,072
Income taxes   1,124,191     102,000     266,907     1,493,098   6,096,378     189,218     152,000     6,437,596
 
Net income $ 1,724,441 $ 568,959 $ 511,933 $ 2,805,333 $ 11,604,191 $ 767,285 $ 288,000 $ 12,659,476
 
Earnings per common share
Basic $ 0.09   $ 0.03   $ 0.03   $ 0.14 $ 0.56   $ 0.04   $ 0.01   $ 0.61
Diluted $ 0.09   $ 0.03   $ 0.03   $ 0.14 $ 0.54   $ 0.04   $ 0.01   $ 0.59
 

Weighted average number of common shares outstanding

Basic   20,224,889         20,224,889   20,829,338           20,829,338
Diluted   20,233,234         20,233,234   21,354,073           21,354,073
 

These adjustments reconcile the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results adjusted for the non-GAAP items described below provides meaningful supplemental information to both management and investors.

 
(1) - Represents non-cash stock-based compensation expense.
(2) - Represents severance and other related costs associated with the Company's restructuring in the first quarter of 2009.

(3) - Represents a reduction in the assessed fair value of an auction rate security investment that the Company considered to be other than temporary.

 

The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company’s GAAP results.



Rating:


Review Article Be the first to review this article


Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
13 Graphs Show U.S. and Canadian Housing Starts Shrug Off Pandemic
Jobs
Structural Engineer for Kiewit at Lenexa, Kansas
Architect for Hutton at Wichita, Afghanistan
Design Engineer (Engineer 1/2) for Los Alamos National Laboratory at Los Alamos,, New Mexico
Structural Engineer 2 (Engineer 2) for Los Alamos National Laboratory at Los Alamos,, New Mexico
Mechanical Engineer for Flextronics at Milpitas, California
3D Designer and Developer for Los Alamos National Laboratory at Los Alamos,, New Mexico
Upcoming Events
Beyond 2020 conference (virtual) at Gothenburg Sweden - Nov 2 - 4, 2020
ABX | ArchitectureBoston Expo at Boston Convention & Exhibition Center Boston MA - Nov 4 - 5, 2020
Greenbuild 2020 at San Diego Convention Center San Diego CA - Nov 4 - 7, 2020
Kenesto: 30 day trial
Digital Cities
CADalog.com - Countless CAD add-ons, plug-ins and more.



© 2020 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise