Stratasys, Inc. today announced fourth quarter and full year financial results.
The company reported record revenue of $33.8 million for the fourth quarter ended December 31, 2010, a 29% increase over the $26.2 million reported for the same period in 2009. System shipments for the fourth quarter totaled a record 632 units, a 47% increase over the 431 units for the same period last year.
The company reported net income of $4.3 million for the fourth quarter, or $0.20 per share, an 80% increase when compared to net income of $2.4 million, or $0.12 per share, for the same period last year.
Non-GAAP net income, which excludes stock-based compensation expense, was $4.5 million, or $0.21 per share, for the fourth quarter of 2010, a 52% increase when compared to non-GAAP net income of $2.9 million, or $0.14 per share, for the same period last year.
Revenue was $117.1 million for the twelve-month period ended December 31, 2010, compared to $98.4 million reported for the same period in 2009. System shipments totaled a record 2,555 units for the twelve-month period, a 33% increase over the 1,918 units shipped during the same period last year.
The twelve-month period in 2010 included a $5.0 million one-time non-cash charge against revenue. The charge against revenue was taken in the first quarter and represents the fair value of a warrant issued to HP (NYSE: HPQ) for 500,000 shares of Stratasys, Inc. common stock, in connection with the distribution agreement signed in January 2010.
Non-GAAP revenue for the twelve-month period, which excludes the warrant charge, was $122.1 million, a 24% increase over the $98.4 million reported for the same period in 2009.
Net income was $9.4 million for the twelve-month period, or $0.44 per share, compared to net income of $4.1 million, or $0.20 per share for the same period last year.
Non-GAAP net income, which excludes the warrant charge, certain discrete items and stock-based compensation expense, was $13.4 million, or $0.63 per share, for the twelve-month period of 2010 compared to non-GAAP net income of $5.7 million, or $0.28 per share, for the same period last year.
Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of this press release. The table provides itemized detail of the non-GAAP financial measures.
"We are pleased with our fourth quarter performance which was driven by a continuation of strong positive sales momentum across all our core businesses," said Scott Crump, chairman and chief executive officer of Stratasys. "Our margins improved both sequentially and year-over-year in the fourth quarter. In addition, the fourth quarter year-over-year comparisons for revenue represented the strongest growth of any quarter during 2010. We believe this acceleration in growth bodes well for 2011.
"We continued to observe incremental progress in our game-changing collaboration with HP. The markets served by HP experienced strong growth during the fourth quarter, as unit sales of HP's Designjet 3D printers were more than 3 times the comparable uPrint sales generated within those same markets the previous year. The HP collaboration remains a central focus of our expansion strategy within 3D printing, and we believe that HP is becoming increasingly confident in the market's significant potential.
"The sales growth in our Fortus 3D production system business was particularly strong during the fourth quarter, increasing by 39% year-over-year. The broadening of applications of our core FDM technology into direct digital manufacturing, or DDM, applications remains the driver behind this growth. We estimate the purchase decision for approximately 30% of Fortus systems shipped during the fourth quarter was based predominately on fulfilling a DDM application.
"Our success with direct digital manufacturing provides evidence of incremental growth opportunities for our proprietary technology that go beyond the traditional applications. The capabilities of our technology were recently showcased by Kor Ecologic in Winnipeg, Canada, which created Urbee, one of the world's most fuel efficient and environmentally friendly vehicles. The car's body and exterior components were printed using our FDM technology. Additional information surrounding this innovative application can be accessed by following the link provided in this press release.
"Revenue from consumables, our highest margin product, grew by 29% during the fourth quarter over last year, continuing a trend of consistently strong growth throughout the year. The growth in consumables has been supported by the improvement in market conditions, and our rapidly growing installed base of systems. Our company has now sold more than 15,000 systems worldwide over the past 15 years, with over 10,000 of those systems sold within the past 5 years. Despite our rapid growth, we believe the market remains relatively under penetrated.
"In anticipation of future growth across all our product lines, we purchased a 90,000 square foot building in December that will allow us to consolidate some leased facilities, as well as expand our future manufacturing capacity. We believe our industry-leading technology combined with HP's market-leading brand and extensive distribution capabilities will help us accelerate our unit system sales in the future, which in turn will drive sales of our high-margin consumables.
"As we continue to expand, Stratasys must remain committed to our customers through continuous improvement in customer service and product quality. Proof of our commitment was recently shown by the ISO 9001:2000 certification awarded to Stratasys in January. ISO certification is awarded to companies that adhere to strict management practices within manufacturing and customer service. I'm proud of our company and all our employees that made this certification a reality.
"Going forward, I believe we are well prepared to address the growing demand of our customers and core markets. The HP relationship continues to be a major part of our expansion strategy within 3D printing. We are hard at work on new products that we believe will allow us to further penetrate the 3D printing market, as well as provide expanded functionality for DDM applications. We have no shortage of opportunities and remain excited about our future," Crump concluded.
Stratasys plans to hold a conference call to discuss its fourth quarter and full year financial results on Wednesday, February 9, 2011 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys Web site at www.stratasys.com under the "Investors" tab; or directly at the following web address: phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=61402&eventID=3667191.
To participate by telephone, the domestic dial-in number is 800-901-5217 and the international dial-in is 617-786-2964. The access code is 77925057. Investors are advised to dial into the call at least ten minutes prior to the call to register.
The webcast will be available for 90 days on the "Investors" page of the Stratasys Web site or by accessing the provided web address.
Additional information regarding Urbee can be accessed at the following web address: phx.corporate-ir.net/phoenix.zhtml?c=61402&p=irol-newsArticle_print&ID=1488816&highlight=.