Revenue was $23.1 million for the first quarter ended March 31, 2009 versus $30.7 million reported for the same period in 2008. System shipments totaled 591 units for the first quarter of 2009, versus 577 for the same period last year.
The company reported a net loss of approximately $704,000 for the first quarter, or $0.03 per share, compared to net income of $3.8 million, or $0.18 per share, for the same period last year.
Non-GAAP net income, which excludes certain discrete items and stock-based compensation expense, was approximately $5,000 for the first quarter of 2009 compared to $4.3 million for the same period last year.
The first quarter of 2009 included a discrete item related to a pre-tax restructuring expense that totaled approximately $779,000. The restructuring expense is associated with cost-saving measures the company implemented during the first quarter. The total restructuring expense, net of tax, was approximately $512,000, or $0.03 per share.
The first quarter of 2008 included a discrete item related to an impairment charge of approximately $257,000 net of tax, or $0.01 per share. This non-operating charge in 2008 was an adjustment to the fair value of an auction rate security.
Stock-based compensation expense required under Statement of Financial Accounting Standard (SFAS) 123R was approximately $197,000 net of tax, or $0.01 per share for the first quarter of 2009, and approximately $261,000 net of tax, or $0.01 per share, for the same period last year.
Cash flow from operations totaled $3.0 million for the first quarter. The company had approximately $49 million in total cash and investments as of the end of the first quarter.
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 impairment charge and restructuring expense, as well as the stock-based compensation expense used to determine non-GAAP financial measures.
“The first quarter represented a challenging economic environment for our company as market conditions deteriorated significantly from levels observed in the fourth quarter of last year,” said Scott Crump, chairman and chief executive officer of Stratasys. “The global slowdown impacted all of our businesses, as customers reduced capital budgets and operating expenditures. Despite these conditions, our new initiatives have been well-executed, and we are well-positioned for a rebound in the global economy.
“Our new distribution model for Fortus 3D production systems in North America has been successfully implemented, with all Stratasys systems now distributed through an indirect channel worldwide. In addition, we remain excited about the opportunity within direct digital manufacturing, as well as our new branding and product strategies that target these applications. Although Fortus 3D production system sales fell compared to last year, we are building a pipeline of opportunities that should contribute to accelerated growth when economic conditions improve.
“We have been pleased with the market’s response to our new personal 3D printer, the uPrint, following its successful introduction in January. While total sales of our 3D printers have been disappointing, uPrint sales have been strong. In addition, we believe the system represents a whole-product solution that has widened our lead over competitors. Despite the current economic environment, we remain passionate in our long-term vision to accelerate the adoption of 3D printers among designers and engineers worldwide, and we are confident that our strategy will meet that goal.
“Our RedEye paid parts and consumable businesses were also impacted by the weak global economy during the first quarter. Although our paid parts business grew slightly over last year, it was negatively impacted by an aggressive competitive environment, as many competitors are fighting for their survival. Our consumable business felt the impact of a decline in system usage, as our users have cut back on design and engineering resources. We believe these trends are temporary, and will reverse with an eventual rebound in the markets we serve.
“The near-term outlook continues to suggest a difficult market environment, and we have taken steps in the first quarter to adjust our operating expenses. However, our value proposition has not changed, nor has our long-term outlook and strategy for growth. We remain committed to our long-term goals and objectives and remain confident in our ability to provide value to our customers, channel partners and shareholders,” Crump concluded.
Due to the difficulty of forecasting in the current economic environment, Stratasys is currently not providing financial guidance for the fiscal year ending December 31, 2009.
The company recently provided access to several promotional videos on
its Web site, including a demonstration of a Dimension 3D printer
application at Jay Leno’s Garage, and a presentation by the Chief
Technology Officer at AutoDesk of a full-scale custom motorcycle
prototype made by the RedEye paid parts service. These videos can be