NEWS: Stratasys Announces Record '97 Revenue of $29.6 Million; Earnings of $.09 per share
MINNEAPOLIS--(BUSINESS WIRE)--February 19, 1998--
Fourth Quarter Earnings are $0.16 per share on Sales of $10.1
Million
Company Sees Continued Strong Growth in 1998
Stratasys, Inc. (NASDAQ NMS:SSYS) today announced earnings of
$0.09 per share for the year ended December 31, 1997 on record revenue
of $29,636,370 which is a 29% increase over 1996 revenues of
$22,919,818.
The net income for 1997 was $514,833 or $0.09 per share, compared
to a net income of $3,503,024, or $0.63 per share, in 1996 ($0.33 on a
pro-forma, fully taxed basis.) Gross profit margin as a percentage of
sales increased to 67.3% in 1997 from 65.6% in 1996.
Revenue growth since 1994 has shown significant momentum,
accelerating from $3.8 million in 1994 to $10.3 million in 1995, $22.9
million in 1996 and $29.6 million in 1997.
Revenues for the fourth quarter of 1997 were $10,117,038 as
compared to $10,448,038 in 1996. Net income was $951,368 compared to
$2,856,103 in the fourth quarter of 1996. Earnings per share was $0.16
compared to $0.52 in the fourth quarter of 1996 ($0.25 on a pro-forma,
fully taxed basis.) Fourth quarter gross profit margin as a percentage
of sales rose to 72% from 65% in the fourth quarter of 1996.
Scott Crump, Chairman and CEO, stated, "We are very encouraged by
the high interest level in our FDM Quantum(tm), the large high-speed
rapid prototyping (RP) system, which we recently introduced. This
system builds parts up to 2.5 to 5 times faster than our current
FDM(R) systems. 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."
Crump continued, "We exceeded all historical sales results in 1997
despite a slower than expected growth in our new Genisys(R) 3D-Printer
product and in international sales. Strong demand exists for our
entire FDM product line. If you remove Genisys revenues from 1996 and
1997 for comparison purposes, the revenue from our core FDM products
grew approximately 50% in 1997 over 1996, greatly exceeding the RP
industry growth average. We continue our commitment to Genisys, the
3D-Printer, and have great confidence in the Concept Modeling market."
Crump concluded, "We believe our strong sales growth is
sustainable due to the continued industry need for time compression
engineering and the strong growth of low cost 3D solid modeling CAD
(computer aided design) seats. We are very fortunate to have developed
products which accurately fit the needs of the growing mechanical CAD
and engineering segment which has adopted rapid prototyping as a
valuable tool in product design and development. Our customers are
finding in Stratasys' products an attractive combination of low cost,
high accuracy, speed and a variety of modeling materials. These
factors make us confident that 1998 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, medical and consumer products OEM's. The Company's
patented Fused Deposition Modeling (FDM) and Genisys rapid prototyping
processes create 3-dimensional plastic and wax prototype parts
directly from 3-D CAD systems. The Company is located at 14950 Martin
Drive, Eden Prairie, Minnesota 55344-2020. See our home page at
www.stratasys.com.
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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, 1996 and on Form 10-QSB for the quarter ended
September 30, 1997.
STRATASYS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
---------------------------------------------------------------------
December 31, December 31,
1997 1996
(audited) (audited)
---------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 9,116,232 $ 3,964,968
Marketable Securities 4,441,380 6,572,907
Accounts receivable, less allowance
for doubtful
accounts of $514,461
in 1997 and $470,000 in 1996 11,666,054 10,607,155
Inventories 5,492,130 2,648,990
Prepaid expenses 226,698 344,101
Deferred taxes 1,051,000 945,000
----------- -----------
Total current assets 31,993,494 25,083,121
----------- -----------
Machinery and Equipment, less accumulated
depreciation of $1,700,702
in 1997 and $837,715 in 1996 3,445,265 2,184,165
----------- -----------
Other assets
Intangible assets,
less accumulated amortization 3,376,038 4,119,857
Sundry 169,633 75,576
----------- -----------
3,545,671 4,195,433
----------- -----------
$38,984,430 $31,462,719
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Obligations under capitalized leases,
current portion 144,137 186,415
Accounts payable and other
current liabilities 3,066,342 3,622,555
Unearned maintenance revenue 2,426,270 1,082,044
----------- -----------
Total current liabilities 5,636,749 4,891,014
----------- -----------
Deferred taxes 124,000 71,000
Obligations under capitalized leases,
less current portion 136,314 94,977
----------- -----------
260,314 165,977
----------- -----------
Stockholders' Equity
Common Stock, $.01 par value,
authorized 15,000,000
shares, issued and outstanding
6,079,659 shares in 1997
and 5,517,309 shares in 1996 60,797 55,173
Capital in excess of par value 33,556,084 27,394,902
Accumulated deficit (529,514) (1,044,347)
----------- -----------
Total Stockholders' Equity 33,087,367 26,405,728
----------- -----------
$ 38,984,430 $ 31,462,719
----------- -----------
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STRATASYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
-----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
(unaudited)(unaudited) (audited) (audited)
-----------------------------------------------------------------------
Sales $10,117,038 $10,448,038 $29,636,370 $22,919,818
Cost of goods sold 2,833,437 3,612,392 9,696,465 7,888,516
---------- ----------- ----------- -----------
Gross profit 7,283,601 6,835,646 19,939,905 15,031,302
Costs and expenses
Research and
development 1,268,650 1,166,121 5,054,767 3,374,039
Selling, general
and administrative 4,804,206 3,744,429 14,676,175 9,485,519
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
6,072,856 4,910,550 19,730,942 12,859,558
---------- ----------- ----------- -----------
Operating income 1,210,745 1,925,096 208,963 2,171,744
---------- ----------- ----------- -----------
Other income (expense)
Interest income 126,056 156,463 496,813 585,516
Interest expense (20,952) (10,456) (61,520) (39,236)
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
105,104 146,007 435,293 546,280
---------- ----------- ----------- -----------
Income before
income taxes 1,315,849 2,071,103 644,256 2,718,024
Income taxes (benefit) 364,481 (785,000) 129,423 (785,000)
---------- ----------- ----------- -----------
Net income $951,368 $2,856,103 $514,833 $3,503,024
---------- ----------- ----------- -----------
Income per common
and common
equivalent share
Basic $0.16 $0.52 $0.09 $0.67
---------- ----------- ----------- -----------
Diluted $ 0.16 $0.52 $0.09 $0.63
---------- ----------- ----------- -----------
Weighted average number
of common and common
equivalent shares
outstanding
Basic 5,922,357 5,492,902 5,726,339 5,191,002
------------ ------------ ---------- -----------
Diluted 6,081,391 5,545,602 6,016,381 5,585,417
------------ ------------ ---------- -----------
CONTACT:
For more information contact:
Scott Crump, Chairman and President
Stratasys, Inc.
612-937-3000
or
Tom Stenoien, CFO
Stratasys, Inc.
612-937-3000
or
Derek Caldwell, Executive Vice President
Sunrise Financial
212-421-1616
KEYWORD: MINNESOTA
BW1010 FEB 19,1998
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