Stratasys Announces 150% Growth in 2001 Earnings; It Releases Revolutionary Office 3D Printer for CAD at $29,900
MINNEAPOLIS--Feb. 19, 2002--Stratasys, Inc. today announced 150% growth in year-over-year earnings for 2001 and strong revenues for the year ended December 31, 2001. The company also just released a revolutionary desktop office 3D Printer that builds plastic prototype parts directly from CAD (Computer-aided-design) files at a price that will expand the market.Revenues for the full year 2001 were $37,571,586, as compared with $35,610,547 for the prior year. The company had record operating profits of $3,487,807. Net income for 2001 rose 150% to $2,513,185, or $0.46 per share compared with $988,301, or $0.17 per share for the prior year.
Revenues for the fourth quarter ended December 31, 2001 rose 20% to $9,957,170, compared with $8,287,775 for the comparable prior period. Net income for the fourth quarter rose to $919,391 or $0.17 per share, compared with $114,162, or $0.02 per share in the prior year.
"We had an excellent year in 2001, made all the more significant considering how poorly the economy fared at the close of the year. We are extremely proud to report very strong earnings and revenues for 2001 with an even healthier balance sheet, increased cash and little debt," says Scott Crump, Chairman and CEO. "We enter 2002 with two exciting new products, a major worldwide launch of our new CAD 3D Printer and a significant increase in our 3D Printer reseller sales channel."
"We believe that a revolution is now occurring in the emerging $600 million rapid prototyping industry worldwide, empowering design engineers to physically see and functionally test their new product designs at their desks, with prototype parts of real plastic. This shift is similar to the one everyone experienced when personal printers became affordable. Stratasys pioneered 3D Printer output from CAD, and we were the first to launch a desktop 3D Printer. Now we expect to reap the rewards as the first pioneer positioned for growth as this new, high-volume desktop application explodes geometrically.
It is generally believed that Rapid Prototyping has "crossed the chasm" and entered the "early majority" segment of adoption. With an average industry system-selling for $150,000, a relatively small number of systems are sold annually. When a full-function desktop system is offered under $30,000, we believe an "inflection point" occurs, which geometrically increases adoption (price elasticity). Over 3 million CAD seats are now operating globally, driving the RP industry. Although the industry produced over 3.1 million rapid prototype parts last year, it has emerged, but is far from being saturated."
Crump went on to say, "Stratasys' Dimension(TM) system (www.DimensionPrinting.com) is the first ultra low-priced office 3D Printer system that produces tough, durable ABS parts for functional testing of prototype designs. Office modeling combines the ease, speed, simplicity and low cost of 3D printing with the major benefit of part durability for functional test - all within a networked design engineering office environment. We believe that these 3D Printers will soon become as common in engineering offices as laser printers are today."
"Stratasys systems represent the lowest total-cost of ownership among the major rapid prototyping suppliers. We believe this is why Stratasys has sold more RP Systems than anyone in the RP Industry worldwide over the past 5 years."
"We are also very pleased to report strong revenue growth from our newly released Titan product two quarters ago. Further, repeat customers were 44 percent of sales for the year, indicating strong customer satisfaction from our growing installed base." Crump concluded.
Stratasys, Inc. is in the three dimensional solid imaging business as a manufacturer of rapid prototyping systems for automotive, aerospace, industrial, recreational, electronic, medical and consumer products OEM's. The Company's patented Fused Deposition Modeling (FDM) rapid prototyping processes create precision 3-dimensional plastic and wax prototyping parts directly from 3-D CAD systems. Stratasys holds over 44 patents worldwide focused on rapid prototyping. The Company is located at 14950 Martin Drive, Eden Prairie, Minnesota 55344-2020 and www.stratasys.com.
Except for the historical information herein the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the timely development and acceptance of new products, including the Company's newly introduced Dimension and Titan systems, the impact of competitive products and pricing, and the other risks detailed from time to time in the Company's SEC Reports, including the report on Form 10-Q for the quarter ended September 30, 2001 and Form 10-K for the year ended December 31,2000.
This release is also available on the Stratasys website at www.stratasys.com.
The full Dimension 3D Printer release is also available at www.DimensionPrinting.com.
STRATASYS, INC.
CONSOLIDATED BALANCE SHEETS
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December 31, December 31,
2001 2000
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ASSETS
Current assets
Cash and cash equivalents $10,211,398 $ 6,737,306
Accounts receivable, less allowance for
returns and doubtful accounts of $562,888
in 2001 and $458,359 in 2000 12,132,738 11,496,515
Inventories 6,877,582 9,102,818
Prepaid expenses 558,879 673,230
Deferred income taxes 246,000 229,000
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Total current assets 30,026,597 28,238,869
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Property and equipment, net 6,006,529 2,905,620
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Other assets
Intangible assets, net 3,288,222 3,521,561
Deferred income taxes 2,363,000 2,687,000
Other 266,997 228,681
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5,918,219 6,437,242
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$41,951,345 $37,581,731
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Obligations under capitalized leases,
current portion $ 130,320 $ 187,692
Mortgage payable, current portion 54,994
Accounts payable and other current
liabilities 3,736,284 3,719,309
Unearned maintenance revenue 4,510,751 4,318,335
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Total current liabilities 8,432,349 8,225,336
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Long-term liabilities
Obligations under capital leases, less
current portion 130,320
Mortgage payable, less current position 2,215,983
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2,215,983 130,320
Commitments
Stockholders' Equity
Common Stock, $.01 par value, authorized
15,000,000 shares, issued 6,133,294 shares
in 2001 and 6,125,994 shares in 2000 61,333 61,260
Capital in excess of par value 32,943,974 32,907,547
Accumulated deficit 1,797,606 (715,579)
Accumulated other comprehensive loss (72,084) (48,776)
Less cost of treasury stock, 740,400 shares
in 2001 and 652,000 shares in 2000 (3,427,816) (2,978,377)
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Total Stockholders' Equity 31,303,013 29,226,075
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$41,951,345 $37,581,731
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STRATASYS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
(unaudited) (unaudited)
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Sales $9,957,170 $ 8,287,775 $37,571,582 $35,610,547
Cost of goods sold 3,518,287 3,618,212 14,570,815 13,662,083
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Gross profit 6,438,883 4,669,563 23,000,767 21,948,464
Costs and expenses
Research and
development 1,242,118 1,517,989 4,915,098 6,366,800
Selling, general
and
administrative 3,767,339 3,705,694 14,597,862 15,232,662
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5,009,457 5,223,683 19,512,960 21,599,462
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Operating income 1,429,426 (554,120) 3,487,807 349,002
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Other income
Interest income 23,095 148,939 306,068 551,841
Interest and
other expense (17,964) (12,290) (103,732) (69,545)
Foreign currency
translation
gain (loss) (36,546) 94,590 (167,086) 94,590
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(31,415) 231,239 35,250 576,886
Income before
income taxes 1,398,011 (322,881) 3,523,057 925,888
Income taxes
(benefit) 478,620 (437,043) 1,009,872 (62,413)
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Net income $ 919,391 $ 114,162 $ 2,513,185 $ 988,301
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Earnings per
common share
Basic $ 0.17 $ 0.02 $ 0.46 $ 0.18
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Diluted $ 0.17 $ 0.02 $ 0.46 $ 0.17
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Weighted average
number of common
shares outstanding
Basic 5,430,257 5,473,994 5,461,989 5,527,144
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Diluted 5,564,393 5,474,238 5,492,852 5,684,318
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