This release is also available on the Stratasys Web site at www.Stratasys.com.
| STRATASYS, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Net sales | |||||||||||||||||
| Product | $ | 23,965,510 | $ | 20,690,590 | $ | 73,919,081 | $ | 64,579,560 | |||||||||
| Services | $ | 6,603,918 | $ | 5,772,882 | $ | 18,632,957 | $ | 17,452,266 | |||||||||
| $ | 30,569,428 | $ | 26,463,472 | $ | 92,552,038 | $ | 82,031,826 | ||||||||||
| Cost of goods sold | |||||||||||||||||
| Product | $ | 12,048,155 | $ | 9,787,018 | $ | 34,512,079 | $ | 29,145,219 | |||||||||
| Services | $ | 2,706,835 | $ | 3,187,655 | $ | 7,553,275 | $ | 9,091,199 | |||||||||
| $ | 14,754,990 | $ | 12,974,673 | $ | 42,065,354 | $ | 38,236,418 | ||||||||||
| Gross profit | $ | 15,814,438 | $ | 13,488,799 | $ | 50,486,684 | $ | 43,795,408 | |||||||||
| Operating expenses | |||||||||||||||||
| Research and development | $ | 2,100,349 | $ | 1,964,619 | $ | 6,841,822 | $ | 5,571,254 | |||||||||
|
Selling, general and administrative |
$ | 8,415,988 | $ | 7,435,325 | $ | 27,004,811 | $ | 24,667,240 | |||||||||
| $ | 10,516,337 | $ | 9,399,944 | $ | 33,846,633 | $ | 30,238,494 | ||||||||||
| Operating income | $ | 5,298,101 | $ | 4,088,855 | $ | 16,640,051 | $ | 13,556,914 | |||||||||
| Other income (expense) | |||||||||||||||||
| Interest income, net | $ | 498,831 | $ | 629,074 | $ | 1,646,730 | $ | 1,730,733 | |||||||||
| Foreign currency transaction losses | $ | (83,794 | ) | $ | (101,250 | ) | $ | (299,620 | ) | $ | (346,518 | ) | |||||
| Other | $ | (33,560 | ) | $ | (2,651 | ) | $ | (286,592 | ) | $ | 35,330 | ||||||
| $ | 381,477 | $ | 525,173 | $ | 1,060,518 | $ | 1,419,545 | ||||||||||
| Income before income taxes | $ | 5,679,578 | $ | 4,614,028 | $ | 17,700,569 | $ | 14,976,459 | |||||||||
| Income taxes | $ | 1,970,011 | $ | 1,377,038 | $ | 6,096,378 | $ | 4,948,472 | |||||||||
| Net income | $ | 3,709,567 | $ | 3,236,990 | $ | 11,604,191 | $ | 10,027,987 | |||||||||
| Earnings per common share | |||||||||||||||||
| Basic | $ | 0.18 | $ | 0.15 | $ | 0.56 | $ | 0.48 | |||||||||
| Diluted | $ | 0.18 | $ | 0.15 | $ | 0.54 | $ | 0.47 | |||||||||
|
Weighted average number of common shares outstanding |
|||||||||||||||||
| Basic | 20,616,338 | 20,939,735 | 20,829,338 | 20,693,597 | |||||||||||||
| Diluted | 21,021,417 | 21,813,829 | 21,354,073 | 21,519,903 | |||||||||||||
| STRATASYS, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| September 30, | December 31, | |||||||
| 2008 | 2007 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 16,914,916 | $ | 16,211,771 | ||||
| Short-term investments | $ | 6,058,366 | $ | 27,257,592 | ||||
|
Accounts receivable, less allowance for returns and doubtful accounts of $1,259,973 in 2008 and $1,205,621 in 2007 |
$ | 31,493,285 | $ | 26,307,053 | ||||
| Inventories, net | $ | 19,770,800 | $ | 12,771,235 | ||||
| Net investment in sales-type leases | $ | 5,417,846 | $ | 3,256,953 | ||||
| Prepaid expenses | $ | 2,801,944 | $ | 2,507,316 | ||||
| Deferred income taxes | $ | 711,000 | $ | 711,000 | ||||
| Total current assets | $ | 83,168,157 | $ | 89,022,920 | ||||
| Property and equipment , net | $ | 29,154,778 | $ | 26,577,362 | ||||
| Other assets | ||||||||
| Intangible assets, net | $ | 8,411,960 | $ | 8,063,319 | ||||
| Net investment in sales-type leases | $ | 2,609,972 | $ | 4,101,682 | ||||
| Deferred income taxes | $ | 786,000 | $ | 719,000 | ||||
| Long-term investments - available for sale securities | $ | 1,940,000 | $ | - | ||||
| Long-term investments | $ | 17,444,352 | $ | 17,965,489 | ||||
| Other | $ | 1,623,873 | $ | 2,307,250 | ||||
| Total other assets | $ | 32,816,157 | $ | 33,156,740 | ||||
| $ | 145,139,092 | $ | 148,757,022 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other current liabilities | $ | 12,834,173 | $ | 13,959,022 | ||||
| Unearned revenues | $ | 12,093,827 | $ | 10,964,471 | ||||
| Total current liabilities | $ | 24,928,000 | $ | 24,923,493 | ||||
| Stockholders' equity | ||||||||
|
Common stock, $.01 par value, authorized 30,000,000 shares, issued 25,906,026 shares in 2008 and 25,610,654 shares in 2007 |
$ | 259,060 | $ | 256,108 | ||||
| Capital in excess of par value | $ | 91,232,771 | $ | 87,023,541 | ||||
| Retained earnings | $ | 67,888,374 | $ | 56,284,182 | ||||
| Accumulated other comprehensive loss | $ | (164,688 | ) | $ | 172,073 | |||
|
Less cost of treasury stock, 5,687,631 shares in 2008 and 4,600,056 shares in 2007 |
$ | (39,004,425 | ) | $ | (19,902,375 | ) | ||
| Total stockholders' equity | $ | 120,211,092 | $ | 123,833,529 | ||||
| $ | 145,139,092 | $ | 148,757,022 | |||||
| STRATASYS, INC. | ||||||||||||||||||||
| RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS | ||||||||||||||||||||
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Three Months Ended September 30, |
Three Months Ended September 30, |
|||||||||||||||||||
| 2008 | 2008 | 2007 | 2007 | |||||||||||||||||
| (unaudited) | Non-GAAP | (unaudited) | (unaudited) | Non-GAAP | (unaudited) | |||||||||||||||
| As Reported | Adjustments (1) | Non-GAAP | As Reported | Adjustments (1) | Non-GAAP | |||||||||||||||
| Selling, general and administrative expenses | $ | 8,415,988 | $ | (321,285 | ) | $ | 8,094,703 | $ | 7,435,325 | $ | (241,000 | ) | $ | 7,194,325 | ||||||
| Total operating expenses | 10,516,337 | (321,285 | ) | 10,195,052 | 9,399,944 | (241,000 | ) | 9,158,944 | ||||||||||||
| Operating income | 5,298,101 | 321,285 | 5,619,386 | 4,088,855 | 241,000 | 4,329,855 | ||||||||||||||
| Income before income taxes | 5,679,578 | 321,285 | 6,000,863 | 4,614,028 | 241,000 | 4,855,028 | ||||||||||||||
| Income taxes | 1,970,011 | 83,000 | 2,053,011 | 1,377,038 | 38,124 | 1,415,162 | ||||||||||||||
| Net income | $ | 3,709,567 | $ | 238,285 | $ | 3,947,852 | $ | 3,236,990 | $ | 202,876 | $ | 3,439,866 | ||||||||
| Earnings per common share | ||||||||||||||||||||
| Basic | $ | 0.18 | $ | 0.01 | $ | 0.19 | $ | 0.15 | $ | 0.01 | $ | 0.16 | ||||||||
| Diluted | $ | 0.18 | $ | 0.01 | $ | 0.19 | $ | 0.15 | $ | 0.01 | $ | 0.16 | ||||||||
|
Weighted average number of common shares outstanding |
||||||||||||||||||||
| Basic | 20,616,338 | 20,616,338 | 20,939,735 | 20,939,735 | ||||||||||||||||
| Diluted | 21,021,417 | 21,021,417 | 21,813,829 | 21,813,829 | ||||||||||||||||
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Nine Months Ended September 30, |
Nine Months Ended September 30, |
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| 2008 | 2008 | 2007 | 2007 | |||||||||||||||||
| (unaudited) | Non-GAAP | (unaudited) | (unaudited) | Non-GAAP | (unaudited) | |||||||||||||||
| As Reported | Adjustments (1) | Non-GAAP | As Reported | Adjustments (1) | Non-GAAP | |||||||||||||||
| Selling, general and administrative | $ | 27,004,811 | $ | (956,503 | ) | $ | 26,048,308 | $ | 24,667,240 | $ | (723,000 | ) | $ | 23,944,240 | ||||||
| Total operating expenses | $ | 33,846,633 | $ | (956,503 | ) | $ | 32,890,130 | $ | 30,238,494 | $ | (723,000 | ) | $ | 29,515,494 | ||||||
| Operating income | $ | 16,640,051 | $ | 956,503 | $ | 17,596,554 | $ | 13,556,914 | $ | 723,000 | $ | 14,279,914 | ||||||||
| Income before income taxes | $ | 17,700,569 | $ | 956,503 | $ | 18,657,072 | $ | 14,976,459 | $ | 723,000 | $ | 15,699,459 | ||||||||
| Income taxes | $ | 6,096,378 | $ | 189,218 | $ | 6,285,596 | $ | 4,948,472 | $ | 176,812 | $ | 5,125,284 | ||||||||
| Net income | $ | 11,604,191 | $ | 767,285 | $ | 12,371,476 | $ | 10,027,987 | $ | 546,188 | $ | 10,574,175 | ||||||||
| Earnings per common share | ||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.04 | $ | 0.60 | $ | 0.48 | $ | 0.03 | $ | 0.51 | ||||||||
| Diluted | $ | 0.54 | $ | 0.04 | $ | 0.58 | $ | 0.47 | $ | 0.03 | $ | 0.50 | ||||||||
|
Weighted average number of common shares outstanding |
||||||||||||||||||||
| Basic | 20,829,338 | 20,829,338 | 20,693,597 | 20,693,597 | ||||||||||||||||
| Diluted | 21,354,073 | 21,354,073 | 21,519,903 | 21,519,903 | ||||||||||||||||
|
(1) These adjustments reconcile the Company ’ s GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results excluding non-cash stock-based compensation provides meaningful supplemental information to both management and investors that is indicative of the Company ’ s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These non-GAAP measures should not be viewed as a substitute for the Company ’ s GAAP results. |
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| STRATASYS, INC. | ||
| FISCAL YEAR 2008 | ||
| RECONCILIATION OF NON-GAAP FORWARD LOOKING GUIDANCE | ||
| Earnings Per Diluted Share Range | ||
| U.S. GAAP measure | $0.75 to $0.80 | |
|
Adjustments to exclude the effects of expenses related to stock-based compensation under SFAS 123R |
$0.04 - $0.05 | |
| Non-GAAP estimates | $0.79 to $0.84 | |
