Non-GAAP Discussion
The information discussed within this release includes financial results and forward-looking financial guidance that are in accordance with U.S. generally accepted accounting principles (GAAP). In addition, certain non-GAAP financial measures and guidance have been included that excludes certain expenses. The non-GAAP financial measures are provided in an effort to give information that investors may deem relevant to the company’s operations and comparative performance, primarily the identification and exclusion of expenses associated with stock-based compensation required under SFAS 123R. In addition, the company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods.
This release is also available on the Stratasys Web site at www.Stratasys.com.
| STRATASYS, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
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| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net Sales | ||||||||||||||||
| Product | $ | 24,846,032 | $ | 22,198,715 | $ | 49,953,572 | $ | 43,888,970 | ||||||||
| Services | $ | 6,428,890 | $ | 6,024,779 | $ | 12,029,039 | $ | 11,679,384 | ||||||||
| $ | 31,274,922 | $ | 28,223,494 | $ | 61,982,611 | $ | 55,568,354 | |||||||||
| Cost of goods sold | ||||||||||||||||
| Product | $ | 11,721,570 | $ | 9,692,932 | $ | 22,463,924 | $ | 19,358,201 | ||||||||
| Services | $ | 2,244,982 | $ | 2,929,973 | $ | 4,846,440 | $ | 5,903,544 | ||||||||
| $ | 13,966,552 | $ | 12,622,905 | $ | 27,310,364 | $ | 25,261,745 | |||||||||
| Gross profit | $ | 17,308,370 | $ | 15,600,589 | $ | 34,672,247 | $ | 30,306,609 | ||||||||
| Costs and expenses | ||||||||||||||||
| Research and development | $ | 2,572,764 | $ | 1,804,574 | $ | 4,741,473 | $ | 3,606,635 | ||||||||
| Selling, general and administrative | $ | 8,897,955 | $ | 8,759,067 | $ | 18,588,823 | $ | 17,231,915 | ||||||||
| $ | 11,470,719 | $ | 10,563,641 | $ | 23,330,296 | $ | 20,838,550 | |||||||||
| Operating income | $ | 5,837,651 | $ | 5,036,948 | $ | 11,341,951 | $ | 9,468,059 | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income, net | $ | 546,833 | $ | 610,366 | $ | 1,147,899 | $ | 1,101,659 | ||||||||
| Foreign currency transaction losses | $ | (187,658 | ) | $ | (127,415 | ) | $ | (215,826 | ) | $ | (245,269 | ) | ||||
| Other | $ | 22,747 | $ | 41,604 | $ | (253,032 | ) | $ | 37,982 | |||||||
| $ | 381,922 | $ | 524,555 | $ | 679,041 | $ | 894,372 | |||||||||
| Income before income taxes | $ | 6,219,573 | $ | 5,561,503 | $ | 12,020,992 | $ | 10,362,431 | ||||||||
| Income taxes | $ | 2,123,517 | $ | 1,927,944 | $ | 4,126,366 | $ | 3,571,434 | ||||||||
| Net income | $ | 4,096,056 | $ | 3,633,559 | $ | 7,894,626 | $ | 6,790,997 | ||||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | 0.20 | $ | 0.18 | $ | 0.38 | $ | 0.33 | ||||||||
| Diluted | $ | 0.19 | $ | 0.17 | $ | 0.37 | $ | 0.32 | ||||||||
|
Weighted average number of common
|
||||||||||||||||
| Basic | 20,878,049 | 20,742,794 | 20,934,889 | 20,568,492 | ||||||||||||
| Diluted | 21,491,704 | 21,616,908 | 21,470,288 | 21,341,528 | ||||||||||||
| STRATASYS, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, | December 31, | |||||||
| 2008 | 2007 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 21,532,951 | $ | 16,211,771 | ||||
| Short-term investments | $ | 7,179,424 | $ | 27,257,592 | ||||
|
Accounts receivable, less allowance for returns and doubtful accounts of $1,259,973 in 2008 and $1,205,621 in 2007 |
$ | 34,471,168 | $ | 26,307,053 | ||||
| Inventories | $ | 18,450,306 | $ | 12,771,235 | ||||
| Net investment in sales-type leases | $ | 4,702,911 | $ | 3,256,953 | ||||
| Prepaid expenses | $ | 3,395,580 | $ | 2,507,316 | ||||
| Deferred income taxes | $ | 711,000 | $ | 711,000 | ||||
| Total current assets | $ | 90,443,340 | $ | 89,022,920 | ||||
| Property and equipment , net | $ | 28,094,175 | $ | 26,577,362 | ||||
| Other assets | ||||||||
| Intangible assets, net | $ | 8,286,936 | $ | 8,063,319 | ||||
| Net investment in sales-type leases | $ | 3,093,663 | $ | 4,101,682 | ||||
| Deferred income taxes | $ | 786,000 | $ | 719,000 | ||||
| Long-term investments - Available for sale securities | $ | 1,990,000 | $ | - | ||||
| Long-term investments | $ | 17,997,626 | $ | 17,965,489 | ||||
| Other | $ | 1,620,720 | $ | 2,307,250 | ||||
| Total other assets | $ | 33,774,945 | $ | 33,156,740 | ||||
| $ | 152,312,460 | $ | 148,757,022 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other current liabilities | $ | 9,918,165 | $ | 13,959,022 | ||||
| Unearned revenues | $ | 11,923,009 | $ | 10,964,471 | ||||
| Total current liabilities | $ | 21,841,174 | $ | 24,923,493 | ||||
| Stockholders' equity | ||||||||
|
Common stock, $.01 par value, authorized 30,000,000 shares, issued 25,822,803 shares in 2008 and 25,610,654 shares in 2007 |
$ | 258,228 | $ | 256,108 | ||||
| Capital in excess of par value | $ | 89,617,488 | $ | 87,023,541 | ||||
| Retained earnings | $ | 64,178,807 | $ | 56,284,182 | ||||
| Accumulated other comprehensive loss | $ | 271,625 | $ | 172,073 | ||||
|
Less cost of treasury stock, 4,821,155 shares in 2008 and 4,600,056 shares in 2007 |
$ | (23,854,862 | ) | $ | (19,902,375 | ) | ||
| Total stockholders' equity | $ | 130,471,286 | $ | 123,833,529 | ||||
| $ | 152,312,460 | $ | 148,757,022 | |||||
| STRATASYS, INC. | ||||||||||||||||||||
| RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS | ||||||||||||||||||||
| Three Months Ended June 30, | Three Months Ended June 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 | $ | 8,897,955 | $ | (319,823 | ) | $ | 8,578,132 | $ | 8,759,067 | $ | (178,949 | ) | $ | 8,580,118 | ||||||
| Total operating expenses | 11,470,719 | (319,823 | ) | 11,150,896 | 10,563,641 | (178,949 | ) | 10,384,692 | ||||||||||||
| Operating income | 5,837,651 | 319,823 | 6,157,474 | 5,036,948 | 178,949 | 5,215,897 | ||||||||||||||
| Income before income taxes | 6,219,573 | 319,823 | 6,539,396 | 5,561,503 | 178,949 | 5,740,452 | ||||||||||||||
| Income taxes | 2,123,517 | 52,218 | 2,175,735 | 1,927,944 | 47,546 | 1,975,490 | ||||||||||||||
| Net income | $ | 4,096,056 | $ | 267,605 | $ | 4,363,661 | $ | 3,633,559 | $ | 131,403 | $ | 3,764,962 | ||||||||
| Earnings per common share | ||||||||||||||||||||
| Basic | $ | 0.20 | $ | 0.01 | $ | 0.21 | $ | 0.18 | $ | 0.01 | $ | 0.19 | ||||||||
| Diluted | $ | 0.19 | $ | 0.01 | $ | 0.20 | $ | 0.17 | $ | 0.01 | $ | 0.18 | ||||||||
|
Weighted average number of common shares outstanding |
||||||||||||||||||||
| Basic | 20,878,049 | 20,878,049 | 20,742,794 | 20,742,794 | ||||||||||||||||
| Diluted | 21,491,704 | 21,491,704 | 21,616,908 | 21,616,908 | ||||||||||||||||
|
Six Months Ended June 30, |
Six Months Ended June 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 | $ | 18,588,823 | $ | (635,218 | ) | $ | 17,953,605 | $ | 17,231,915 | $ | (482,000 | ) | $ | 16,749,915 | ||||||
| Total operating expenses | $ | 23,330,296 | $ | (635,218 | ) | $ | 22,695,078 | $ | 20,838,550 | $ | (482,000 | ) | $ | 20,356,550 | ||||||
| Operating income | $ | 11,341,951 | $ | 635,218 | $ | 11,977,169 | $ | 9,468,059 | $ | 482,000 | $ | 9,950,059 | ||||||||
| Income before income taxes | $ | 12,020,992 | $ | 635,218 | $ | 12,656,210 | $ | 10,362,431 | $ | 482,000 | $ | 10,844,431 | ||||||||
| Income taxes | $ | 4,126,366 | $ | 106,218 | $ | 4,232,584 | $ | 3,571,434 | $ | 138,688 | $ | 3,710,122 | ||||||||
| Net income | $ | 7,894,626 | $ | 529,000 | $ | 8,423,626 | $ | 6,790,997 | $ | 343,312 | $ | 7,134,309 | ||||||||
| Earnings per common share | ||||||||||||||||||||
| Basic | $ | 0.38 | $ | 0.03 | $ | 0.41 | $ | 0.33 | $ | 0.02 | $ | 0.35 | ||||||||
| Diluted | $ | 0.37 | $ | 0.02 | $ | 0.39 | $ | 0.32 | $ | 0.02 | $ | 0.34 | ||||||||
|
Weighted average number of common shares outstanding |
||||||||||||||||||||
| Basic | 20,934,889 | 20,934,889 | 20,568,492 | 20,568,492 | ||||||||||||||||
| Diluted | 21,470,288 | 21,470,288 | 21,341,528 | 21,341,528 | ||||||||||||||||
