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May 3, 2010
Share ThisStratasys Inc. (SSYS) reported first quarter 2010 EPS of 13 cents per share, exceeding the Zacks Consensus estimate of 12 cents per share.
Revenue
The company reported first quarter 2010 revenue of $23.0 million, almost flat compared to $23.1 million reported in the year-ago quarter. Excluding the warrant related charge, non-GAAP revenue for the quarter was $28.0 million in the first quarter, up 21.0% from $23.1 million reported in the year-ago quarter.
Segment wise, Product sales generated $21.8 million in revenue, down 28.4% from $16.9 million reported in the year-ago quarter. Service revenue for the quarter was $6.23 million, almost flat compared to $6.19 million reported in the year-ago quarter.
Operating Results
First quarter 2010 gross profit was $9.4 million (or 43.1% of revenue), compared to $9.6 million (or 56.4% of revenue) in the year-ago quarter. Excluding the impact of the one-time warrant charge incurred in the first quarter, gross profit increased by 50% to $14.4 million for the first quarter of 2010 when compared to the same period last year. Excluding the impact of the onetime warrant charge, gross profit as a percentage of sales increased to 51.5%, compared to 44.4% for the same period last year.
Reported operating loss for the first quarter is $0.8 million, but excluding the impact of the fair value of warrant, the operating income for the quarter was $4.2 million, compared to the operating loss of $1.6 million reported in the first quarter of 2009.
The company reported net loss of $0.4 million in the first quarter, or 2 cents per share, compared to net income of $0.7 million, or 3 cents per share in the same period last year. Excluding certain discrete items and stock-based compensation expense, non-GAAP net income was $2.9 million, or 14 cents per share in the first quarter of 2010, compared to $5,000, during the same period last year. Including the impact of stock based compensation the adjusted EPS for the quarter was 13 cents.
Balance Sheet
During the quarter, the company generated $2.7 million of cash from operations aided by efficient management of working capital. The company exited the quarter with cash, cash equivalents and short term investments of $67.6 million, up from $64.4 million reported in the previous quarter. The company does not have any long term debt.
Guidance
Stratasys did not provide any numerical revenue guidance for the second quarter of 2010. Although there are positive signs, the company remains cautious and will continue to control expense accordingly.
Read the full analyst report on "SSYS"
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