Stratasys, Inc. Announces Record First Quarter Revenues
27 April 1999
Stratasys, Inc. Announces Record First Quarter Revenues
MINNEAPOLIS--April 26, 1999--Company Sees Continued Strong Growth for 1999
Stratasys, Inc. today announced record revenues for the first quarter ended March 31, 1999.
Revenues for the first quarter rose to $7,603,144 as compared to $7,007,672 in the first quarter of 1998, an 8.5 percent increase. The first quarter has historically been the slowest quarter in regard to sales volume.
The net loss for the first quarter was $193,013, as compared to a profit of $11,772 for the same period in 1998. Gross profit margin as a percentage of sales improved to 68.3 percent for the first quarter of 1999 as compared with 66.1 percent in the comparable 1998 period.
Scott Crump, Chairman and Chief Executive Officer, stated, "We expected our first quarter to be our poorest of the year and ended up within the range of analyst estimates. The first quarter was impacted by product upgrade programs as well as on-going R&D expenses associated with new product development."
Mr. Crump continued, "We exceeded our shipment plan for our new FDM Quantum(TM), the large high-speed rapid prototyping (RP) system, which was introduced last year. More importantly, Quantum expanded applications for us in the automotive, aerospace and service bureau markets.
Mr. Crump added, "We recently introduced our new 3D printer, Genisys(R) Xs. This low-cost printer will now allow designers to print models at the beginning stages of conceptual development when they would normally be looking at 3D sketches. We believe these 3D printers will soon become as common in engineering offices as laser printers are today."
"Stratasys RP Systems now cover the entire product development process, from Genisys for fast concept iterations, to high speed FDM Systems for producing precision functional prototypes, tooling patterns and masters. Strong demand exists for our entire FDM product line. We believe these factors enforce our confidence that 1999 will be our most successful sales year in our history."
Stratasys, Inc., founded in 1989, is a manufacturer of rapid prototyping systems for automotive, aerospace, industrial, recreation, electronic and consumer products OEM's. The Company's patented Fused Deposition Modeling process creates three-dimensional ABS, wax, elastomer or polyester compound models directly from all 3D CAD files. The Company is located at 14950 Martin Drive, Eden Prairie, Minnesota 55344-2020. For further information on the Company and its products, please contact Stratasys, Inc. by phone (612-937-3000) or fax (612-937-0070) or visit the Stratasys website at 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, 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 31,1998, and on Form 10-Q for the quarter ended March 31, 1999.
This release is available on the Stratasys website at www.stratasys.com and the KCSA website at www.kcsa.com.
CONSOLIDATED BALANCE SHEETS
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March 31, December 31,
1999 1998
(unaudited)
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ASSETS
Current assets
Cash and cash equivalents $ 10,873,387 $ 11,243,839
Marketable Securities 593,114 4,593,910
Accounts receivable, less allowance
for doubtful accounts of $434,503
in 1999 and $409,341 in 1998 7,488,861 9,838,836
Inventories 5,052,526 5,035,588
Prepaid expenses 673,230 593,363
Deferred taxes 341,277 243,000
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Total current assets 25,022,395 31,548,536
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Property and equipment, net 3,638,847 3,601,829
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Other assets
Intangible assets, net 2,666,408 2,788,769
Deferred income taxes 3,072,000 3,072,000
Other 172,474 179,042
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5,910,882 6,039,811
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$ 34,572,124 $ 41,190,176
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Obligations under capitalized
leases, current portion 128,047 177,669
Purchased in-process research and
development payable 6,464,709
Accounts payable and other current
liabilities 3,250,887 3,601,570
Unearned maintenance revenue 3,137,565 2,649,824
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Total current liabilities 6,516,499 12,893,772
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Obligations under capitalized leases,
less current portion 193,327 193,327
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Stockholders' Equity
Common Stock, $.01 par value,
authorized 15,000,000 shares,
issued 6,100,961 shares in 1999
and 6,100,524 shares in 1998 61,020 61,005
Capital in excess of par value 32,712,755 32,710,484
Accumulated deficit (4,040,543) (3,847,529)
Accumulated other comprehensive
income (loss) 33,264 (38,956)
Less cost of treasury stock, 166,400
shares in 1999
and 137,300 shares in 1998 (904,198) (781,927)
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Total Stockholders' Equity 27,862,298 28,103,077
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$ 34,572,124 $ 41,190,176
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
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Three Months Ended March 31,
1999 1998
(unaudited) (unaudited)
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Sales $ 7,603,144 $ 7,007,672
Cost of goods sold 2,410,094 2,375,847
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Gross profit 5,193,050 4,631,825
Costs and expenses
Research and development 1,676,931 1,275,171
Selling, general and
administrative 3,915,400 3,505,875
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5,592,331 4,781,046
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Operating income (loss) (399,281) (149,221)
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Other income (expense)
Interest income 122,984 180,955
Interest expense (14,993) (13,623)
-----------------------------------
107,991 167,332
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Income (loss) before income taxes (291,290) 18,111
Income taxes (benefit) (98,277) 6,339
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Net income (loss) $ (193,013) $ 11,772
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Earnings (loss) per common share
Basic $ (0.03) $ -
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Diluted $ (0.03) $ -
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Weighted average number of common
shares outstanding
Basic 5,959,432 6,080,146
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Diluted 5,959,432 6,177,739
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COMPREHENSIVE INCOME (LOSS)
Net income (loss) $ (193,013) $ 11,772
Other comprehensive income
Foreign currency translation
adjustment 72,220
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Comprehensive income (loss) $ (120,793) $ 11,772
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