MINNEAPOLIS—(BUSINESS WIRE)—February 15, 2007— Stratasys, Inc. (Nasdaq: SSYS) today announced record quarter and fiscal year financial results.
Revenues rose 26% to $29.7 million for the fourth quarter ended
December 31, 2006 over the $23.5 million reported in the same quarter
of the previous year. Non-GAAP net income increased to $3.9 million in
the fourth quarter, or $0.38 per share, which excludes the impact of
stock-based compensation expense required under Financial Accounting
Standard (SFAS) 123R. This expense, net of tax, amounted to
approximately $222,000, or $0.02 per share, in the fourth quarter of
GAAP net income increased to $3.7 million in the fourth quarter,
or $0.35 per share. This compares to net income of $3.1 million, or
$0.30 per share, for the fourth quarter of 2005. Stock-based
compensation expenses were not included in the 2005 fourth quarter
financial results. Total system shipments increased 33% to 483 units
for the fourth quarter of 2006 compared with 363 units for the same
period in 2005.
Revenues rose 25% to $103.8 million for the twelve months ended
December 31, 2006 over the $82.8 million reported in the same period
of the previous year. Non-GAAP net income increased to $12.1 million
in the twelve-month period, or $1.17 per share, which excludes the
impact of stock-based compensation expense required under SFAS 123R.
This expense, net of tax, amounted to approximately $972,000, or $0.09
per share, for the twelve-month period.
GAAP net income increased to $11.2 million in the twelve-month
period, or $1.08 per share, compared to net income of $10.6 million,
or $0.99 per share for the same period in 2005. Stock-based
compensation expenses were not included in the 2005 financial results.
Total system shipments increased 38% to 1,796 units for the
twelve-month period compared with 1,297 units for the same period in
The reconciliation between non-GAAP and GAAP financial measures is
provided in a table at the end of this press release.
"Our fourth quarter and fiscal year 2006 financial results have
provided us with several impressive company milestones, which include
the strongest quarterly performance in our history, and surpassing
$100 million in annual revenue," said Scott Crump, chairman and chief
executive officer of Stratasys. "We finished the year with strong
performances from all of our major businesses, including 3D printing,
high-end productivity systems and paid parts, as well as strong growth
in our recurring revenue components.
"The recurring revenue components of our business, which include
system consumables and maintenance, generated record levels of
revenue, a direct result of the ongoing expansion of our installed
base of systems. Our notable announcement last September of our
6,000th system installation, an FDM Vantage to Dell Computer, has
already been eclipsed by our 7,000th installation. This continued
rapid expansion in system sales should provide for ongoing growth in
our recurring revenue businesses.
"Our Dimension 3D Printing business exceeded our plan throughout
the year. Although our distribution capabilities for 3D printing are
unsurpassed within the industry, we continued to improve this valuable
asset with significant expansion in the Asia Pacific region, as well
as through extensive educational and training programs, like Dimension
University, which increases channel productivity. We are following the
successful 2006 launch of the Dimension 1200 line with our recent
introduction of a new 3D printer, the Dimension Elite. Our channel
partners are excited about this new product, and we believe 2007 is
looking to be another strong year for 3D printing.
"We have successfully transitioned from Eden product distribution,
and have streamlined our resources for the purpose of growing our
proprietary FDM productivity system business. This renewed focus
should benefit from an acceleration of product development that began
in 2005. In addition, we believe our 2007 high-end product initiatives
will better position our company for direct digital manufacturing, or
in other words, the manufacture of end-use parts.
"Our paid parts business grew by 45% in 2006, a direct result of
our highly-successful online part quoting, ordering and fulfillment
service, RedEyeRPM.com. The paid parts service is a high-margin and
rapidly growing business opportunity. We will be adding capacity for
paid parts in 2007, and expect another strong year of growth.
"In addition, given that most customers buy parts before buying a
system, we view this service as a profitable tool for sourcing system
sales. Notably, direct digital manufacturing orders contributed to a
significant portion of our paid parts business in 2006, and we believe
this an indicator of new applications for our technology.
"We continue to believe a significant opportunity exists in 3D
printing, which could exceed 500,000 printers worldwide. However, the
opportunity presented by direct digital manufacturing is potentially
larger, and we have made tangible progress at targeting that
opportunity within our paid parts business and within new system
"We have transitioned and realigned our high-end productivity
system business to focus on our proprietary products. And regardless
of the opportunity or application, as we grow our installed base of
systems, we are positioned to continue growing our highly-profitable
recurring revenue streams.
"Our guidance for fiscal 2007 demonstrates our belief in another
strong year, and we are excited about the opportunities ahead," Crump
Stratasys released the following information regarding its
financial guidance for the fiscal year ending Dec. 31, 2007:
-- Revenue guidance of $105 million to $110 million.
-- Non-GAAP earnings guidance of $1.37 to $1.49 per share, which
excludes the impact of stock-based compensation required under
-- GAAP earnings guidance of $1.28 to $1.40 per share.
The reconciliation between non-GAAP and GAAP financial projections
is provided in a table at the end of this press release.
Included in this release is a reclassification of costs related to
the company's customer service department. Historically, costs
associated with customer service have been accounted for as an SG&A
expense. The customer service department performs services related
directly to the maintenance and installation of systems. These
activities are related to the revenue generating process, and
therefore, should be included in the cost of sales. The change is
reflected in our 2006 fourth quarter and fiscal year financial tables,
with quarterly restatements for fiscal 2006 provided in a table at the
end of this press release. These reclassifications have no impact on
operating profit or net income.
The company will hold a conference call to discuss fourth quarter
and fiscal year 2006 financial results on February 15, 2007 at 8:30
a.m. EST. To access the call, dial 877-407-8035 (or 201-689-8035
internationally). A recording of the call will be available for two
weeks. To access the recording, dial 877-660-6853 (or 201-612-7415
internationally) and enter account 286 and conference I.D. 229919.
A live webcast will be available through the Investors section of
the Stratasys Web site (www.stratasys.com). A replay of the webcast
will be made available on the Stratasys Web site for 90 days.
Stratasys Inc., Minneapolis, manufactures office-based rapid
prototyping and manufacturing systems and 3D printers and offers rapid
prototyping and manufacturing parts services. According to Wohlers
Report 2006, Stratasys supplied 34 percent of all systems installed
worldwide in 2005, making it the unit market leader, for the fourth
consecutive year. Stratasys owns the rapid prototyping process known
as fused deposition modeling (FDM). The process creates functional
models and end-use parts directly from any 3D CAD program using ABS
plastic, polycarbonate, PPSF, and blends. The company holds over 180
granted or pending rapid prototyping patents globally. Stratasys
products are used in the aerospace, defense, automotive, medical,
education, electronic, and consumer product industries. The company's
systems are also used for direct digital manufacturing (DDM) and rapid
tooling applications. For more information on the company, go to
www.Stratasys.com; www.RedEyeRPM.com; or www.DimensionPrinting.com.
Forward Looking Statements
All statements herein that are not historical facts or that
include such words as "expects", "anticipates", "projects",
"estimates" or "believes" or similar words are forward-looking
statements that we deem to be covered by and to qualify for the safe
harbor protection covered by the Private Securities Litigation Reform
Act of 1995. Our belief that we have the largest part-building service
is based on the number of dedicated machines. 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 (TM) line, Prodigy 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 experienced in this and preceding
quarters; our ability to introduce and market new materials such as
ABS-Plus 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
manage the period following the discontinuation of the Objet
distribution agreement; our ability to effectively and profitably
market and distribute the Arcam product line; the success of our
recent R&D initiative to expand the direct digital manufacturing
capabilities of our core FDM technology; the success of our
RedEyeRPM(TM) and other parts services; and the other risks detailed
from time to time in our SEC Reports, including the annual report on
Form 10-K for the year ended December 31, 2005 and 10-Qs filed