Stratasys Records Super Quarter

From: ChathamRes@aol.com
Date: Wed Oct 30 2002 - 18:38:33 EET


It looks like Stratasys is running on all cyinders.

See below:

Stratasys Reports Record 3rd Qtr. Revenues & Operating Profit

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 30, 2002--

Results Significantly Exceed Plan

Stratasys, Inc. (Nasdaq:SSYS) today announced a significant milestone in the
company's history by reporting record revenues for the third quarter ended
September 30, 2002, the highest quarterly revenue and operating profit in the
company's history.

Revenues for the third quarter rose to $12,028,475 compared with $9,703,008
in the third quarter of 2001. Net income for the third quarter grew
significantly to $1,723,214, or $0.31 per share, compared with income of
$979,667, or $0.18 per share, for the same period in 2001.

Revenues for the first nine months grew to $28,563,472 compared with revenues
of $27,614,412 for the same nine-month period of 2001. Net income for the
nine months totaled $1,516,139 or $0.27 per share, compared with $1,593,794,
or $0.29 per share, for the same nine-month period in 2001.

"Offering best price/performance products has demonstrated that our product
offerings satisfy a definite need of the rapid prototyping customer, even in
these difficult economic times. We observed strong acceptance in the 3rd
quarter of our Prodigy-Plus, Titan and Maxum systems with their offering of
functional prototypes made with real production grade plastic," stated
Chairman and CEO Scott Crump.

"Our backlog remains strong going into the fourth quarter, significantly
above our 2001 ending backlog. Sales continue to rapidly grow for our
revolutionary priced 3D-Printer, Dimension(TM), introduced with an industry
low price of $29,900, significantly exceeding our plan. This is revolutionary
when you consider that some of our competitors systems sell for as high as
$750,000, 25 times the price of the Dimension," Mr. Crump continued.

"Given our strong balance sheet, continued commitment to contain expenses,
and three new, well-received product offerings, we have high expectations
that we will meet or exceed our 2002 plan. We also plan for a successful
2003.

"The Company will not hold a quarterly conference call," Crump concluded.

Stratasys, Inc. is a manufacturer of rapid prototyping systems for
automotive, aerospace, military, industrial equipment, recreation,
electronic, medical, and consumer products OEM's. The Company's patented
Fused Deposition Modeling (FDM) rapid prototyping process creates
3-dimensional plastic and wax prototype parts directly from 3-D CAD systems.
The Company has over 88 pending and issued global RP patents. The Company can
be reached at 14950 Martin Drive, Eden Prairie, Minnesota 55344-2020 and
www.stratasys.com.

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 10Q for the quarters ended, March 31 and June 30, 2002, and Form 10-K
for the year ended December 31, 2001.

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

Dimension 3D-Printer information can be found at www.DimensionPrinting.com.

Item 1. Financial Statements

STRATASYS, INC.

CONSOLIDATED BALANCE SHEETS

----------------------------------------------------------------------

                                            September 30, December 31,

                                                2002 2001

                                             (unaudited) (audited)

----------------------------------------------------------------------

ASSETS

Current assets

    Cash and cash equivalents $11,769,650 $10,211,398

    Accounts receivable, less allowance for

     returns and doubtful accounts of

     $475,691 in 2002 and $562,888 in 2001 11,228,513 12,132,738

    Inventories 7,139,981 6,877,582

    Prepaid expenses 388,331 558,879

    Deferred income taxes 246,000 246,000

                                            --------------------------

        Total current assets 30,772,475 30,026,597

                                            --------------------------

Property and equipment, net 5,766,638 6,006,529

                                            --------------------------

Other assets

    Intangible assets, net 3,055,883 3,288,222

    Deferred income taxes 1,780,230 2,363,000

    Other 130,717 266,997

                                            --------------------------

                                               4,966,830 5,918,219

                                            --------------------------

                                             $41,505,943 $41,951,345

                                            --------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

    Obligations under capitalized leases $29,794 $130,320

    Mortgage payable, current portion 59,997 54,994

    Accounts payable and other current

     liabilities 3,886,670 3,736,284

    Unearned maintenance revenue 4,359,835 4,510,751

                                            --------------------------

        Total current liabilities 8,336,296 8,432,349

                                            --------------------------

Mortgage payable, less current portion 2,171,999 2,215,983

                                            --------------------------

Stockholders' equity

  Common Stock, $.01 par value, authorized

   15,000,000 shares, issued 6,468,291

   shares in 2002 and 6,133,294 shares

   in 2001 64,683 61,333

   Capital in excess of par value 34,752,884 32,943,974

   Retained earning 3,313,745 1,797,606

   Accumulated other comprehensive loss (64,583) (72,084)

   Less cost of treasury stock, 1,167,737

    shares in 2002 and 740,400 shares in

    2001 (7,069,081) (3,427,816)

                                            --------------------------

        Total stockholders' equity 30,997,648 31,303,013

                                            --------------------------

                                             $41,505,943 $41,951,345

                                            --------------------------

STRATASYS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

----------------------------------------------------------------------

                        Three Months Ended Nine Months Ended

                           September 30, September 30,

                      ----------------------- ------------------------

                         2002 2001 2002 2001

                      (unaudited) (unaudited) (unaudited) (unaudited)

----------------------------------------------------------------------

Sales $12,028,475 $9,703,008 $28,536,472 $27,614,412

Cost of goods sold 4,326,895 3,771,738 11,069,358 11,052,528

                      ----------------------- ------------------------

Gross profit 7,701,580 5,931,270 17,467,114 16,561,884

Costs and expenses

     Research and

      development 1,273,278 1,185,319 3,611,537 3,672,980

     Selling, general

      and

      administrative 3,988,082 3,573,314 11,850,599 10,830,523

                      ----------------------- ------------------------

                        5,261,360 4,758,633 15,462,136 14,503,503

                      ----------------------- ------------------------

Operating income 2,440,220 1,172,637 2,004,978 2,058,381

                      ----------------------- ------------------------

Other income (expense)

     Interest income 36,325 78,442 117,228 282,973

     Interest expense (44,051) (35,960) (135,313) (85,768)

     Other (22,406) 91,051 133,582 (130,540)

                      ----------------------- ------------------------

                          (30,132) 133,533 115,497 66,665

                      ----------------------- ------------------------

 Income (loss) before

  income taxes 2,410,088 1,306,170 2,120,475 2,125,046

 Income taxes 686,874 326,503 604,336 531,252

                      ----------------------- ------------------------

 Net income $1,723,214 $979,667 $1,516,139 $1,593,794

                      ----------------------- ------------------------

Earnings per common

 share

        Basic $0.32 $0.18 $0.28 $0.29

                      ----------------------- ------------------------

        Diluted $0.31 $0.18 $0.27 $0.29

                      ----------------------- ------------------------

Weighted average

 number of common

 shares outstanding

        Basic 5,326,904 5,470,107 5,346,650 5,472,785

                      ----------------------- ------------------------

        Diluted 5,529,858 5,487,212 5,616,378 5,480,021

                      ----------------------- ------------------------

COMPREHENSIVE INCOME

Net income $1,723,214 $979,667 $1,516,139 $1,593,794

Other comprehensive

 income (loss)

     Foreign currency

      translation

      adjustment 20,634 983 13,507 (18,386)

                      ----------------------- ------------------------

Comprehensive income $1,743,848 $980,650 $1,529,646 $1,575,408

                      ----------------------- ------------------------

CONTACT:

Stratasys, Inc., Minneapolis

S. Scott Crump, 952/937-3000

or

Tom Stenoien, 952/937-3000

www.stratasys.com

SOURCE: Stratasys, Inc.

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