Stratasys Reports Record Full-Year Revenue and Earnings.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- Annual system shipments increase 58 percent as 3D printing market continues to grow Stratasys Stratasys, Inc. is a company headquartered in Eden Prairie, MN that manufactures and sells both rapid prototyping machines and materials. Stratasys FDM systems use fused deposition modeling technology to produce parts out of industrial-grade thermoplastic materials such as ABS, , Inc. (Nasdaq:SSYS) today announced record full-year revenue and earnings for the year ended Dec. 31, 2004. The company reported revenue of $70.3 million for fiscal 2004, up 38% from $50.9 million for the prior year. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. grew 49% to $13.0 million for 2004, compared with $8.7 million for 2003. Net income rose 48% to $9.1 million, or $0.85 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for fiscal 2004, from $6.2 million, or $0.64 per diluted share, for the prior year. Year-over-year total system shipments rose 58% to 1090 units for 2004. Revenue increased 28% to $19.4 million for the fourth quarter ended Dec. 31, 2004, over the $15.2 million reported for the same quarter of the previous year. Operating profit grew to $3.1 million for the fourth quarter of 2004 compared with $2.7 million for the fourth quarter of 2003. Net income grew 52% to $2.3 million, or $0.21 per diluted share, for the fourth quarter of 2004, compared with net income of $1.5 million, or $0.14 per diluted share, for the same period in 2003. Total system shipments increased to 272 in the fourth quarter of 2004 versus 226 in the fourth quarter of the prior year. Higher expenses associated with Sarbanes-Oxley compliance and higher variable commission selling expenses resulting from better-than-expected sales performance both impacted fourth quarter results. In addition, Stratasys is accelerating research and development investments to position the company for new growth opportunities. These investments contributed to higher costs in the fourth quarter of 2004, and included projects related to 3D printing, materials development, rapid manufacturing Building parts out of plastic or metal one layer at a time using a method of additive fabrication such as 3D printing. Multiple pieces, either similar or dissimilar, can be built simultaneously. and Stratasys' paid-parts business. "Sales growth in fiscal 2004 exceeded our expectations across our entire family of products," said Scott Crump crump v. crumped, crump·ing, crumps v.tr. 1. To crush or crunch with the teeth. 2. To strike heavily with a crunching sound. v.intr. , chairman and chief executive officer of Stratasys. "Despite significantly higher operating costs operating costs npl → gastos mpl operacionales in the fourth quarter versus last year, the robust demand for our family of 3D printers and rapid prototyping Building a part one layer at a time using a method of additive fabrication such as 3D printing. Such parts are used for concept modeling to determine if the product design meets the customer's expectations. systems contributed to a higher corresponding growth rate in sales. In addition to strong system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. , we continue to experience strong revenue growth from consumables, as our installed base of systems continues to grow. We believe these sales trends will continue into fiscal 2005. "We believe Stratasys grew its leadership position in the fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive 3D printing market in 2004, as unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of our Dimension systems grew by 73 percent. Initial order activity in fiscal 2005 for Dimension appears promising when compared to last year, as we are observing more customers purchasing multiple 3D printers for single locations. Engineers are becoming increasingly aware of the benefits of having affordable access to durable, accurate models at the touch of a button. With a growing universe of more than five million designers and engineers now using computer-aided-design (CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. ) software globally, we believe a significant, untapped market opportunity exists for Stratasys within 3D printing. "We also experienced increased sales of our FDM (1) (Fused Deposition Modeling) See 3D printing. (2) (Frequency Division Multiplexing) Transmitting multiple data signals simultaneously over a single wire by using multiple carriers, each having a unique center frequency. productivity systems in 2004. During the fourth quarter, Stratasys received the largest order from an end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. in company history. The order, which came from a major global automobile manufacturer, is a three-year equipment rental package valued in excess of $1 million. "We continue to report strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses -- financial strength that provides us a competitive advantage. Cash flow from operations amounted to approximately $16 million for fiscal 2004. "Overall, we believe we are positioned for growth in 2005 as we continue to innovate in·no·vate v. in·no·vat·ed, in·no·vat·ing, in·no·vates v.tr. To begin or introduce (something new) for or as if for the first time. v.intr. To begin or introduce something new. and expand our product continuum Continuum (pl. -tinua or -tinuums) can refer to:
The company will hold a conference call to discuss year-end and fourth quarter 2004 financial results on Feb. 16, 2005 at 8:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . To access the call, dial 877-707-9628 (or 785-832-2041 internationally). The conference I.D. is "Stratasys." A recording of the call will be available for two weeks after the call. To access the recording, dial 800-839-5631 (or 402-220-2558 internationally). About Stratasys, Inc. Stratasys, Inc. is a worldwide provider of office prototyping and 3D printing solutions. The company manufactures rapid prototyping (RP) and 3D printing systems for the automotive, aerospace, industrial, recreational, electronic, medical, consumer products OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and , and education markets. The company's patented Fused Deposition Modeling See 3D printing. (FDM) rapid prototyping processes create precision three-dimensional plastic and wax prototyping parts directly from 3D computer-aided-design (CAD) systems. Stratasys holds more than 110 granted and pending patents worldwide focused on rapid prototyping. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Wohlers Report 2004, Stratasys was the RP market unit leader in 2003 with 37 percent of all RP systems shipped worldwide that year. The company is located at 14950 Martin Drive, Eden Prairie, Minnesota The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. 55344-2020, and on the Web at www.Stratasys.com and www.DimensionPrinting.com. (Financial Tables follow) All statements herein that are not historical facts or that include such words as "expect", "anticipates", "project", "estimates" or "believe" or similar words are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that we deem to be covered by and to qualify for the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protection covered by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 the continued market acceptance and growth of our Dimension BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. (TM), Dimension SST SST: see airplane. (TM), Prodigy An online information service that provides access to the Internet, e-mail and a variety of databases. Launched in 1988, Prodigy was the first consumer-oriented online service in the U.S. Plus, FDM Maxum(TM), FDM Vantage(TM), and Titan(TM) product lines; the size of the 3D printing market; our ability to penetrate the 3D printing market; our ability to maintain the growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. experienced in this and preceding quarters; our ability to introduce and market new materials such as polyphenylsulfone and the market acceptance of this and other materials; the impact of competitive products and pricing; the timely development and acceptance of new products and materials; our ability to effectively and profitably market and distribute the Eden line; and the other risks detailed from time to time in our SEC Reports, including the reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, June 30 and September 30, 2004, and on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003. This release is also available on the Stratasys Web site at www.Stratasys.com.
STRATASYS, INC.
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
December 31, December 31,
2004 2003
-------------------------
ASSETS
Current assets
Cash and cash equivalents $55,849,845 $44,544,341
Short-term investments - 950,000
Accounts receivable, less allowance for
returns and doubtful accounts of
$1,731,830 in 2004 and $767,337 in 2003 14,951,350 15,788,095
Inventories 7,520,422 6,423,658
Net Investment in sales-type leases 1,324,499 398,207
Prepaid expenses 1,756,494 2,809,541
Deferred income taxes 455,000 146,000
-------------------------
Total current assets 81,857,610 71,059,842
-------------------------
Property and equipment, net 10,043,657 6,544,663
-------------------------
Other assets
Intangible assets, net 2,551,581 2,496,593
Net investment in sales-type leases 2,693,830 888,367
Deferred income taxes 354,000 2,124,000
Long-term investments 720,000 625,000
Other 978,339 361,761
-------------------------
7,297,750 6,495,721
-------------------------
Total assets $99,199,017 $84,100,226
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and other current
liabilities 6,643,620 4,940,055
Unearned maintenance revenue 7,668,362 5,263,962
-------------------------
Total current liabilities 14,311,982 10,204,017
-------------------------
Stockholders' equity
Common stock, $.01 par value, authorized
15,000,000 shares; issued 12,211,835
shares in 2004 and 12,028,320 shares in
2003 122,118 120,283
Capital in excess of par value 71,762,100 69,924,093
Retained earnings 20,193,048 11,063,902
Accumulated other comprehensive loss 5,910 (41,274)
Less cost of treasury stock, 1,770,026 and
1,768,856 shares in 2004 and 2003,
respectively (7,196,141) (7,170,795)
-------------------------
Total stockholders' equity 84,887,035 73,896,209
-------------------------
Total liabilities and stockholders' equity $99,199,017 $84,100,226
=========================
STRATASYS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2004 2003 2004 2003
(unaudited) (unaudited)
----------------------------------------------------------------------
Net Sales
Product $15,985,376 $12,237,482 $56,832,959 $40,346,107
Services 3,460,124 3,002,304 13,495,546 10,543,754
------------ ------------ ------------ ------------
19,445,500 15,239,786 70,328,505 50,889,861
------------ ------------ ------------ ------------
Cost of sales
Product 6,630,355 4,973,367 24,110,537 15,738,265
Services 1,115,283 738,601 3,888,239 2,369,315
------------ ------------ ------------ ------------
7,745,638 5,711,968 27,998,776 18,107,580
------------ ------------ ------------ ------------
Gross profit 11,699,862 9,527,818 42,329,729 32,782,281
------------ ------------ ------------ ------------
Costs and expenses
Research and
development 1,650,814 1,262,988 5,640,216 5,047,207
Selling,
general and
administrative 6,949,616 5,570,991 23,692,008 18,992,636
------------ ------------ ------------ ------------
8,600,430 6,833,979 29,332,224 24,039,843
------------ ------------ ------------ ------------
Operating income 3,099,432 2,693,839 12,997,505 8,742,438
------------ ------------ ------------ ------------
Other income (expense)
Interest income 273,028 102,205 726,558 231,040
Interest expense - (483) - (123,924)
Foreign currency
translation 185,351 236,433 (26,102) 342,877
Other 16,615 (29,742) 149,034 (47,618)
------------ ------------ ------------ ------------
474,994 308,413 849,490 402,375
------------ ------------ ------------ ------------
Income before
income taxes 3,574,426 3,002,252 13,846,995 9,144,813
Income taxes 1,276,538 1,492,158 4,717,849 2,989,299
------------ ------------ ------------ ------------
Net income $2,297,888 $1,510,094 $9,129,146 $6,155,514
============ ============ ============ ============
Earnings per common
share
Basic $0.22 $0.15 $0.88 $0.68
============ ============ ============ ============
Diluted $0.21 $0.14 $0.85 $0.64
============ ============ ============ ============
Weighted average
number of common
shares outstanding
Basic 10,420,322 10,231,461 10,350,043 9,050,668
============ ============ ============ ============
Diluted 10,823,822 10,797,182 10,725,901 9,679,435
============ ============ ============ ============
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