A positive financial report from Stratasys, Inc. (NASDAQ:SSYS) is further indication that this industry is growing. The company reported record revenue of $37.6 million for the second quarter ended June 30, 2011, compared to $30.1 million reported for the same period in 2010. The second quarter results include two months of contribution from the company’s acquisition of Solidscape, Inc., which contributed $2.1 million in revenue to the second quarter results. Excluding the contribution made by Solidscape, revenue was $35.5 million, an 18% increase over the same period last year.
“Our record second quarter results reflect strong growth in Fortus system sales and consumable revenue,” said Scott Crump, chairman and chief executive officer of Stratasys. “The growth in these higher margin products, as well as a continued favorable product mix within 3D printing, contributed to significant margin expansion during the period. These factors combined to generate the highest level of quarterly operating profit in our company’s history.”
The company renewed its agreement with HP for the sale and distribution of its proprietary 3D printers. HP plans to expand into new European markets beyond the five countries they currently serve later this year. Stratasys and HP continue to see a significant market opportunity within 3D printing and both parties remain committed to the collaboration.
“Fortus system sales sustained strong momentum in the second quarter, expanding by 67% over last year,” continued Crump. …“We believe the recent launch of the Fortus 250mc will add to our strategy with a product that combines the higher functionality of a Fortus 3D production system with the ease-of-use and affordability of a Dimension 3D printer. Initial bookings of the Fortus 250mc have been strong.”
Consumable revenue grew in the second quarter, increasing by 20% over last year. The Fortus line is driving this growth, propelled by an expanding base of systems and the product line’s relatively higher use rates, particularly within DDM. The recent introduction of a revolutionary new FDM material should create new DDM opportunities within the electronics industry. This material, called ABS-ESD7, eliminates static electricity, which can be potentially damaging during the manufacture of sensitive electronic components. The material lets you make static-free assembly aids and fabrication tools.
“The acquisition of Solidscape adds to Stratasys’ strategy of expanding into DDM applications; the subsidiary is well positioned for manufacturing applications serving the custom jewelry market. “However,” noted Crump, “as we further develop the technology, we are more excited about the new opportunities that Solidscape provides within a broader set of industrial applications.
“We were pleased to see our leadership position within the additive manufacturing industry reconfirmed in the recently released Wohlers Report 2011. The report indicated that Stratasys had a 41% unit market share in 2010, and has maintained a market leading position for nine consecutive years. We believe our position within the industry will be strengthened over the coming quarters as we execute on our new product roadmap and further develop our channel with HP and our independent reseller network.