Stratasys Reports Strong Second Quarter

The Minnesota-based manufacturer of Additive Manufacturing and 3D Printing systems achieves record consumable revenue and system shipments. This is the first quarter sales were impacted by the rebranding deal with HP.

The new HP-branded 3D printer built by Stratasys is on sale in five European countries.

Stratasys, Inc. (NASDAQ:SSYS) has reported a strong second quarter, setting records in consumables revenue and system shipments.

Total revenue in the quarter ending June 30, 2010 was  $30.1 million, a 22% increase from a year earlier. System shipments were a record 682 units for the quarter, up 54% compared to 442 systems shipped during the same period last year. For the first six months of 2010, Stratasys shipped 1,291 units, a 25% increase over 2009.

The company reported net income of $2.3 million for the second quarter, compared to net income of $850,000 for the same period last year.

Product revenue in the quarter was $23.7 million, up from $18.2 million in 2009. Services revenue in the quarter was $6.3 million, down slightly from $6.4 million a year earlier.

Sales of its 3D printers grew by 56% compared to the second quarter of 2009. The company reported strong sales for both the Stratasys-branded products uPrint and Dimension, as well as the new HP DesignJet line sold only in Europe. This was the first quarter HP sales contributed to Stratasys revenue. Comments Stratasys CEO Scott Crump, “HP’s orders for the DesignJet line exceeded their original forecast during the second quarter, driven by strong sales to end-users. While sales to HP during this phase of the agreement remain relatively small as expected, we are seeing the early signs of success, and are cautiously optimistic about the implications for expanding the collaboration in 2011.”

During the quarter Stratasys announced it has extended its R&D collaboration with an “unnamed Fortune 500 partner” to develop new platforms for Direct Digital Manufacturing applications. The contract extension includes funds to continue development of the Stratasys’ Fortus 3D line of Fused Deposition Modeling production systems.

Cash per share on June 30 2010 was $1.55, down considerably from $3.30 three months ago. The drop in cash for the first six months of 2010 is more dramatic, from $48.3 million in cash and short-term investments on Dec. 30, 2009 to $12.2 million on June 30, 2010. The difference ($36.1 million) was moved into long-term investments. Some would argue that some of the money should have been returned to shareholders as a dividend, but very few US-based technology companies pay dividends.