This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stratasys Reports Record Quarterly Revenue And Non-GAAP Net Income

Stocks in this article: SSYS

This release is available on the Stratasys web site at www.stratasys.com

Additional information on the Emma Lavelle story can be accessed at http://www.stratasys.com/Resources/Case-Studies/Medical-FDM-Technology-Case-Studies/Nemours.aspx

Important Information for Investors and Shareholders

In connection with the proposed combination of Objet and Stratasys pursuant to an Agreement and Plan of Merger (the “Merger”), Objet has filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form F-4, which includes a proxy statement of Stratasys and a prospectus of Objet, as well as other relevant materials in connection with the proposed transaction. Stratasys concurrently filed the same proxy statement/prospectus with the SEC and has mailed it to Stratasys shareholders for purposes of soliciting proxies for voting in favor of the Merger at a special meeting of Stratasys stockholders called for the purpose of approving the Merger Agreement and the Merger. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS, BECAUSE THESE MATERIALS CONTAIN IMPORTANT INFORMATION ABOUT STRATASYS, OBJET AND THE PROPOSED TRANSACTION. The proxy statement/prospectus and other relevant materials and any other related documents filed with the SEC may be obtained free of charge on the SEC’s website at www.sec.gov or via the Stratasys website at www.stratasys.com. Stockholders may also obtain a copy of the SEC filings free of charge upon written request to Stratasys, Attention: Shane Glenn, Director of Investor Relations, 7665 Commerce Way, Eden Prairie, Minnesota 55344.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Stratasys

Stratasys Inc., Minneapolis, is a maker of additive manufacturing machines for prototyping and producing plastic parts. The company markets under the brands Mojo, uPrint and Dimension 3D Printers and Fortus Production 3D Printers. The company also operates RedEye On Demand, a digital-manufacturing service for prototypes and production parts. In 2011 Stratasys acquired 3D printer maker Solidscape Inc. According to Wohlers Report 2012, Stratasys had a 41.5 percent market share in 2011, and has been the unit market leader for the tenth consecutive year. Stratasys patented and owns the Fused Deposition Modeling (FDM ®) process. The process creates functional prototypes and manufactured goods directly from any 3D CAD program, using high-performance industrial thermoplastics. The company holds 380 granted or pending additive manufacturing patents globally. Stratasys products are used in the aerospace, defense, automotive, medical, business and industrial equipment, education, architecture, and consumer-product industries. Online at: www.Stratasys.com

Stratasys, Fortus, Dimension, and uPrint are registered trademarks, and Mojo is a trademark, of Stratasys Inc.

 
STRATASYS, INC. AND SUBSIDIARIES
                 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
                           

Three Months Ended September 30,

Nine Months Ended September 30,

2012 2011 2012 2011
        (unaudited)     (unaudited) (unaudited)     (unaudited)
 
Net sales
Products $ 41,317,863 $ 32,512,544 $ 120,301,057 $ 91,273,133
Services   8,405,612     7,440,470     23,791,947     21,048,816  
49,723,475 39,953,014 144,093,004 112,321,949
 
Cost of sales
Products 17,563,569 15,284,820 54,692,340 43,752,872
Services   4,203,443     3,114,248     12,328,692     9,029,273  
21,767,012 18,399,068 67,021,032 52,782,145
       
Gross profit 27,956,463 21,553,946 77,071,972 59,539,804
 
Operating expenses
Research and development 4,066,846 3,613,668 12,576,094 10,687,578
Selling, general and administrative   14,780,526     10,083,451     42,365,253     28,738,325  
18,847,372 13,697,119 54,941,347 39,425,903
       
Operating income 9,109,091 7,856,827 22,130,625 20,113,901
 
Other income (expense)
Interest income, net 229,003 276,089 672,052 698,469
Foreign currency transaction losses, net (72,586 ) (217,857 ) (265,141 ) (429,840 )
Other, net   7,021     755,030     109,922     2,264,307  
163,438 813,262 516,833 2,532,936
       
Income before income taxes 9,272,529 8,670,089 22,647,458 22,646,837
 
Income tax expense   4,089,393     2,812,920     9,924,615     7,806,524  
 
Net income $ 5,183,136   $ 5,857,169   $ 12,722,843   $ 14,840,313  
 
Earnings per common share
Basic $ 0.24   $ 0.28   $ 0.60   $ 0.70  
Diluted $ 0.24   $ 0.27   $ 0.58   $ 0.68  
 

Weighted average number of common shares outstanding

Basic   21,467,606     21,165,401     21,348,967     21,107,474  
Diluted   22,008,471     21,542,674     21,856,719     21,669,848  
 
 
Note: Certain reclassifications have been made to prior period balances to conform to current period presentation.
 
 
STRATASYS, INC. AND SUBSIDIARIES
         
CONSOLIDATED BALANCE SHEETS
 
               
September 30, December 31,
2012 2011
        (unaudited)      
 
ASSETS
 
Current assets
Cash and cash equivalents $ 27,899,789 $ 20,092,200
Short-term investments - held to maturity 23,900,469 14,602,408

Accounts receivable, less allowance for doubtful accounts of $773,000 at September 30, 2012 and $1,089,000 at December 31, 2011

35,865,540 26,230,289
Inventories 32,079,430 22,771,460

Net investment in sales-type leases, less allowance for doubtful accounts of $302,000 at September 30, 2012 and $230,000 at December 31, 2011

4,249,410 3,295,039
Prepaid expenses and other current assets 2,193,015 3,259,012
Deferred income taxes   2,973,000     2,973,000  
Total current assets   129,160,653     93,223,408  
 
Property and equipment, net   44,887,880     39,669,433  
 
Other assets
Goodwill 25,388,731 25,393,967
Other Intangible assets, net 24,150,718 25,295,032
Net investment in sales-type leases 7,249,832 5,494,753
Long-term investments - held to maturity 13,915,821 32,581,472
Other non-current assets   145,652     112,300  
Total other assets   70,850,754     88,877,524  
 
Total assets $ 244,899,287   $ 221,770,365  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities
Accounts payable and other current liabilities $ 21,628,011 $ 19,368,197
Unearned revenues   9,968,263     9,768,610  
Total current liabilities   31,596,274     29,136,807  
 
Non-current liabilities
Deferred tax liabilities 6,760,000 6,760,000
Unearned revenues - long-term   2,662,953     2,562,195  
 
Total liabilities   41,019,227     38,459,002  
 
Commitments and contingencies
 
Stockholders' equity

Common stock, $.01 par value, authorized 30,000,000 shares; 27,501,216 and 26,933,301 issued at September 30, 2012 and December 31, 2011, respectively

275,012 269,333
Additional paid-in capital 125,951,072 118,134,006
Retained earnings 116,734,701 104,011,848
Accumulated other comprehensive loss (76,300 ) (99,399 )

Treasury stock at cost, 5,687,631 shares at September 30, 2012 and December 31, 2011

  (39,004,425 )   (39,004,425 )
Total stockholders' equity   203,880,060     183,311,363  
 
Total liabilities and stockholders' equity $ 244,899,287   $ 221,770,365  
 
 
Note: Certain reclassifications have been made to prior period balances to conform to current period presentation.
 
             
STRATASYS, INC. AND SUBSIDIARIES
 
RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
 
                                   
Three Months Ended September 30, 2012 Three Months Ended September 30, 2011
As Reported Non-GAAP As Reported Non-GAAP
      (unaudited)   Adjustments       (unaudited)   (unaudited)   Adjustments       (unaudited)
 
Net sales
Products $ 41,317,863 $ - $ 41,317,863 $ 32,512,544 $ - $ 32,512,544
Services   8,405,612     -     8,405,612     7,440,470     -     7,440,470  
49,723,475 - 49,723,475 39,953,014 - 39,953,014
 
Cost of sales
Products 17,563,569 (507,012 ) (a) 17,056,557 15,284,820 (436,012 ) (d) 14,848,808
Services   4,203,443     -     4,203,443     3,114,248     -     3,114,248  
21,767,012 (507,012 ) 21,260,000 18,399,068 (436,012 ) 17,963,056
           
Gross profit 27,956,463 507,012 28,463,475 21,553,946 436,012 21,989,958
 
Operating expenses
Research and development 4,066,846 - 4,066,846 3,613,668 - 3,613,668
Selling, general and administrative   14,780,526     (3,410,994 ) (b)   11,369,532     10,083,451     (574,162 ) (e)   9,509,289  
18,847,372 (3,410,994 ) 15,436,378 13,697,119 (574,162 ) 13,122,957
           
Operating income 9,109,091 3,918,006 13,027,097 7,856,827 1,010,174 8,867,001
 
Other income (expense)
Interest income, net 229,003 - 229,003 276,089 - 276,089
Foreign currency transaction losses, net (72,586 ) - (72,586 ) (217,857 ) - (217,857 )
Other, net   7,021     -     7,021     755,030     (626,188 ) (f)   128,842  
163,438 - 163,438 813,262 (626,188 ) 187,074
           
Income before income taxes 9,272,529 3,918,006 13,190,535 8,670,089 383,986 9,054,075
 
Income tax expense   4,089,393     376,723   (c)   4,466,116     2,812,920     89,362   (c)   2,902,282  
 
Net income $ 5,183,136   $ 3,541,283   $ 8,724,419   $ 5,857,169   $ 294,624   $ 6,151,793  
 
Earnings per common share
Basic $ 0.24   $ 0.16   $ 0.41   $ 0.28   $ 0.01   $ 0.29  
Diluted $ 0.24   $ 0.16   $ 0.40   $ 0.27   $ 0.01   $ 0.29  
 

Weighted average number of common shares outstanding

Basic   21,467,606     21,467,606     21,165,401     21,165,401  
Diluted   22,008,471     22,008,471     21,542,674     21,542,674  
 

These adjustments reconcile the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results adjusted for the non-GAAP items described below provides meaningful supplemental information to both management and investors.

5 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs