Stratasys Optimistic Despite 18% Fourth Quarter Sales Drop

Net revenue and units sales were down, but net profit was up. The January 2010 global distribution deal with HP is one more evidence Stratasys remains the clear leader in 3D printing and fabrication.

Stratasys, Inc. (Nasdaq: SSYS) posted lower revenue results for the both the fourth quarter of 2009 fourth quarter and the full year, but is upbeat about how 2010 is starting.

Fourth Quarter 2009
Revenue was $26.2 million in 4Q09, down from $31.9 million in 4Q08. System shipments totaled 431 units in the quarter, compared with 570 units a year earlier. Net income was $2.4 million in 4Q09, compared to $2.0 million for the same period last year.

In 4Q09 product revenue was $20 million, down from $25 million a year earlier. Services revenue in 4Q09 was $6.2 million, down from $6.8 million in 4Q08.

Stratasys FDM200mc
The FDM200mc is the smallest in Stratasys’s FORTUS line of high-end fused deposition systems.

Full Year 2009
For the full year (ending December 31, 2009) revenue was $98.4 million, compared with $124.5 million reported for FY08. System shipments in FY09 were 1,918 units, versus 2,184 for FY08. Net income was $4.1 million in FY09, versus $13.6 million in FY08.

For FY09 product revenue was $73.2 million, down from $98 million in  2008. Services revenue for 2009 was $25.1 million, barely down from $25.5 a year earlier.

Stratasys CEO Scott Crump says there was an improvement in business conditions during the fourth quarter causing customers to become willing to increase spending. System orders in December were notably strong, leading to a record system backlog of $6.3 million. Spending on consumables was up for the first time in four quarters.

In January 2010 Stratasys announced a global distribution deal with HP for its larger systems. Initially HP will sell the Fortus line in Europe, then expand in future years to other regions. “We believe the agreement represents a major inflection point in advancing our 3D printing strategy worldwide. In addition, we believe HP’s decision is confirmation that a significant market opportunity exists among the millions of designers that are using 3D CAD today,” said Crump.

Cash per share on December 31, 2009 was $3.18.

The company recently produced a video that provides an overview of the turbo-prop displayed by Autodesk (Nasdaq: ADSK) at their annual user conference in December. That video can be seen at: .

The Final Analysis
Stratasys shares have risen 67% over the last six months, closing today at $26.51. The share price is up more than $1 since results were announced. The HP deal is further proof that Stratasys remains the volume leader and the thought leader in high-end 3D printing. §