Stratasys, Inc. Will Announce Record Revenues and Bookings
19 January 1999
Stratasys, Inc. Will Announce Record Revenues and Bookings; Backlog Increases 270 Percent
EDEN PRAIRIE, Minn.--Jan. 18, 1999--R&D Expenses Will Impact Earnings
Stratasys, Inc. today announced that it will report record revenues and bookings, as well as the largest backlog in the Company's history for 1998, but the Company said that it expected fourth quarter and year-end earnings to be lower than analysts' estimates.
Stratasys will report record revenues of approximately $32.4 million for the year ended December 31, 1998, compared with revenues of $29.6 million reported in 1997, a 9 percent increase.
The Company also said that dollar order bookings rose 19 percent over 1997 and sales order backlog for the year ended December 31, 1998 rose to a record $3.7 million as compared to $1 million for 1997, a 270 percent increase.
Stratasys, however, announced that it anticipates fourth quarter and full year 1998 earnings will be lower than analysts' estimates due primarily to lower than anticipated revenue and gross margin in the fourth quarter and higher than anticipated R&D and selling expenses.
Scott Crump, Chairman and Chief Executive Officer, stated, "That although Stratasys will report operating income for the fourth quarter and 1998 year-end, the recently announced acquisition of a new rapid prototyping (RP) technology will create a one-time charge resulting in a full year loss for 1998."
Mr. Crump went on to say, "Backlog is at the highest level in the Company's history and the Company improved its profitability from its basic rapid prototyping business in 1998 as compared to 1997. I am optimistic because there is continuing demand for our full family of products worldwide."
The Company expects to report final fourth quarter and year-end results on February 17, 1999.
Stratasys Inc. is a manufacturer of rapid prototyping systems for automotive, aerospace, industrial, recreation, electronic, medical and consumer products OEM's. The Company's patented Fused Deposition Modeling (FDM) and Genisys rapid prototyping processes create 3-dimensional plastic and wax prototype parts directly from 3-D CAD systems. The Company is located at 14950 Martin Drive, Eden Prairie, Minnesota 55344-2020.
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, 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-KSB for the year ended December 31, 1997, and on Form 10-QSB for the quarters ended June 30, 1998 and September 30, 1998.
This release is available on the Stratasys website at www.stratasys.com and the KCSA Worldwide website at www.kcsa.com.