Shane Glenn - Director of IR Scott Crump - Chairman and CEO Bob Gallagher - CFO Analysts
Troy Jensen - Piper Jaffray Steve Dyer - Craig-Hallum Brian Drab - William Blair Chad Bennett - Northland Capital Market Graeme Rein - Bears Capital Jim Ricchiuti - Needham & Company Chuck Murphy - Sidoti & Company Andy Schopick - Nutmeg Securities Ryan Thibodeaux - Maple Leaf Partners David Trossman - MTB Advisors Presentation Operator
Other risks and uncertainties that may affect our business include our ability to penetrate the 3D printing market; our ability to maintain the growth rates experienced in this and preceding quarters; our ability to introduce, produce and market new materials such as ULTEM and the market acceptance of these and other materials; the impact of competitive products and pricing; our timely development of new products and materials, and market acceptance of those products and materials; the success of our recent R&D initiative to expand the DDM capabilities of our core FDM technology and the success of our RedEye on demand and other paid parts services.Actual results may differ from those expressed or implied in our forward-looking statements. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligations to do so even if our beliefs and expectations change. In addition to the statements described above, such forward looking statements include the risks and uncertainties described more fully in our reports filed or to be filed with the Securities and Exchange Commission, including our annual reports on form 10-K and quarterly reports on Form 10-Q. Information discussed within this conference call includes financial results that are in accordance with US generally accepted accounting principles or GAAP. In addition, non-GAAP financial measures are included that exclude certain expenses. The non-GAAP financial measures are provided in an effort to give information that the investors may deem relevant to the company 's operations and comparative performance, primarily the identification and exclusion of expenses associated with warrant charge, restructuring expenses and expenses associated with stock based compensation. The company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods. The appropriate reconciliations between non-GAAP and GAAP financial measures are provided in a table at the end of our press release.
Now I 'd like to turn the call over to our CEO, Scott Crump.Scott Crump Good morning and thank you for joining us to discuss our second quarter financial results. During the first quarter, we entered into a gain changing exclusive agreement with HP for the worldwide distribution of our 3D printers. During the second quarter, HP began marketing and shipping those products to end customers. We 're excited to report that HP exceeded their initial order forecast for the second quarter and reported strong sales through to end users. We are pleased with this progress and have become more optimistic about expanding the relationship in the future. Consequently, we 've begun to plan for the next phase of our collaboration with HP. In addition to the progress we made with HP, we are pleased to see a continue improvement in business conditions across our core markets during the second quarter. Total revenue for products and services increased by 22% over the last year, led by a 56% increase in 3D printer system revenue. In addition, our consumable revenue grew by an impressive 25% to a record level during the second quarter. Our system unit sales also represented a quarterly record growing by 54% over last year. We were proud to launch our new WaveWash easy to use, automated support removal system that further uniquely differentiates Stratasys competitively. Within Fortus, we continue to maintain a strong pipeline of orders driven by the improvement in business conditions within our core markets. Read the rest of this transcript for free on seekingalpha.com