Stratasys, Inc. Announces Record Second Quarter Revenues
26 July 1999
Stratasys, Inc. Announces Record Second Quarter Revenues; Revenues of $8.9 Million; Record Order Backlog Grows by Over $1 Million
MINNEAPOLIS--July 26, 1999--Stratasys, Inc. today announced record revenues for the second quarter and six months ended June 30, 1999.Revenues for the second quarter rose to a record $8,864,395 as compared to $8,256,810 in the second quarter of 1998. Order backlog grew by over $1 million in the second quarter.
Net income for the second quarter of 1999 was $212,928, or $0.04 per share, as compared to income of $434,737, or $0.07 per share for the same period in 1998.
For the six months ended June 30, 1999, revenues totaled $16,467,539, compared with revenues of $15,264,482 reported for the six months of 1998. Net income for the six months was $19,915, or $0.00 per share, compared with $446,509, or $0.07 per share for the 1998 six month period. Gross profit margin as a percentage of sales for the six months ended June 30, 1999, was 66 percent, as compared with 68 percent in the comparable 1998 period.
Scott Crump, Chairman and Chief Executive Officer, stated, "We are pleased to report a profit for the second quarter, which exceeds analysts' estimates of $0.02 per share. Further, the 30 percent sequential quarterly growth in our order backlog allows us more consistent quarter to quarter financial reporting. Additionally, we experienced an approximate unit growth of 50 percent for the second quarter over the first quarter.
"We reported the highest quarter and year-to-date revenues in our Company's history due to the strong demand which exists for our entire product line. We had strong sales for our new Genisys(R) Xs 3-D printer in its first full quarter of production. Our new Quantum continues its strong penetration into the auto manufacturing industry."
Mr. Crump continued, "Stratasys also repurchased 427,000 shares of our stock over the past year. This reflects our belief that the Company's common stock is undervalued and demonstrates our optimism in the Company's future and our commitment to build shareholder value."
Stratasys, Inc., founded in 1989, is a manufacturer of rapid prototyping systems for automotive, aerospace, industrial, recreation, electronic and consumer products OEMs. 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-QSB for the quarter ended June 30, 1999.
This release is available on the Stratasys website at www.stratasys.com and the KCSA website at www.kcsa.com.
STRATASYS REPORTS/3
STRATASYS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended June 30, Six Months Ended June 30,
1999 1998 1999 1998
(unaudited) (unaudited) (unaudited) (unaudited)
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Sales $8,864,395 $8,256,810 $16,467,539 $15,264,482
Cost of goods sold 3,232,610 2,535,718 5,642,704 4,911,565
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Gross profit 5,631,785 5,721,092 10,824,835 10,352,917
Costs and expenses
Research and
development 1,595,012 1,307,858 3,271,943 2,583,029
Selling, general
and administrative 3,816,496 3,859,845 7,731,896 7,365,720
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5,411,508 5,167,703 11,003,839 9,948,749
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Operating income (loss) 220,277 553,389 (179,004) 404,168
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Other income (expense)
Interest income 132,548 126,913 255,532 307,868
Interest expense (30,895) (11,476) (45,888) (25,099)
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101,653 115,437 209,644 282,769
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Income (loss) before
income taxe 321,930 668,826 30,640 686,937
Income taxes (benefit) 109,002 234,089 10,725 240,428
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Net income (loss) $ 212,928 $ 434,737 $ 19,915 $ 446,509
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Earnings (loss) per
common share
Basic $ 0.04 $ 0.07 $ - $ 0.07
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Diluted $ 0.04 $ 0.07 $ - $ 0.07
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Weighted average
number of common
shares outstanding
Basic 5,934,488 6,084,325 5,946,890 6,082,170
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Diluted 5,936,333 6,172,145 5,949,682 6,173,373
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STRATASYS REPORTS/4
STRATASYS, INC.
CONSOLIDATED BALANCE SHEETS
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June 30, December 31,
1999 1998
(unaudited)
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ASSETS
Current assets
Cash and cash equivalents $ 7,998,898 $ 11,243,839
Marketable Securities 719,723 4,593,910
Accounts receivable, less
allowance for doubtful
accounts of $542,297 in 1999
and $395,291 in 1998 10,293,551 9,838,836
Inventories 5,119,962 5,035,588
Prepaid expenses 794,011 593,363
Deferred income taxes 243,000 243,000
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Total current assets 25,169,145 31,548,536
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Machinery and Equipment, less
accumulated depreciation 3,683,108 3,601,829
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Other assets
Intangible assets 3,067,533 2,788,769
Deferred income taxes 3,072,000 3,072,000
Other 139,489 179,042
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6,279,022 6,039,811
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$ 35,131,275 $ 41,190,176
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Obligations under capitalized leases,
current portion 152,066 177,669
Purchased in-process research and
development payable 6,464,709
Accounts payable and other current
liabilities 3,417,686 3,601,570
Unearned maintenance revenue 3,485,748 2,649,824
Deferred income taxes 10,725
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Total current liabilities 7,066,225 12,893,772
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Obligations under capitalized leases,
less current portion 117,883 193,327
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117,883 193,327
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Stockholders' Equity
Common Stock, $.01 par value,
authorized 15,000,000
shares, issued 6,101,961
shares in 1999
and 6,100,524 shares in 1998 61,020 61,005
Capital in excess of par value 32,712,755 32,710,484
Accumulated deficit (3,827,614) (3,847,529)
Accumulated other comprehensive
income (loss) (33,847) (38,956)
Less cost of treasury stock, 174,100
shares in 1999
and 137,300 shares in 1998 (965,147) (781,927)
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Total Stockholders' Equity 27,947,167 28,103,077
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$ 35,131,275 $ 41,190,176
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