SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1996
[ ] Transition Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 (No fee required)
For the transition period from ______________ to _________________
Commission file number 1-13400
STRATASYS, INC.
(Name of Small Business Issuer in Its charter)
Delaware 36-3658792
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
14950 Martin Drive, Eden Prairie, Minnesota 55344
(Address of Principal Executive Offices)
(612) 937-3000
(Issuer's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for past 90 days.
Yes X No
As of August 7, 1996, the Issuer had 5,337,124 shares of Common Stock, $.01
par value, outstanding.
Transitional Small Business Disclosure Format:
Yes No X
Stratasys, Inc.
Index
Part I. Financial Information
Item 1. Financial Statements Page
Balance Sheets as of June 30, 1996 and December 31, 1995. . . . . 1
Statements of Operations for the three months and
six months ended June 30, 1996 and 1995. . . . . . . . . . . . . .2
Statements of Cash Flows for the six months ended
June 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . .3
Notes to Financial Statements. . . . . . . . . . . . . . . . . . .4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . .5
Part II. Other Information
Item 4. Matters Submitted to Security Holders. . . . . . . . .8
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . .9
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . 10
<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS
STRATASYS, INC.
BALANCE SHEETS
JUNE 30, DECEMBER 31,
1996 1995
(UNAUDITED) (AUDITED)
------------ ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 3,792,249 $ 4,726,056
Marketable securities 6,409,550 6,309,048
Accounts receivable, less allowance for doubtful
accounts of $130,000 in 1996 and 1995 4,856,510 2,769,010
Inventories 2,240,368 907,319
Prepaid expenses 203,524 119,423
------------ ------------
Total current assets 17,502,201 14,830,856
------------ ------------
MACHINERY AND EQUIPMENT, less
accumulated depreciation 1,411,042 1,112,328
------------ ------------
OTHER ASSETS
Deposits 52,124 41,124
Intangible assets 4,272,840 3,910,960
------------ ------------
4,324,964 3,952,084
------------ ------------
$ 23,238,207 $ 19,895,268
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Obligations under capitalized leases, current portion $ 145,493 $ 157,449
Accounts payable and other current liabilities 2,240,846 1,661,517
Unearned maintenance revenue 649,684 371,570
------------ ------------
Total current liabilities 3,036,023 2,190,536
------------ ------------
OBLIGATIONS UNDER CAPITALIZED LEASES, less current portion 112,123 182,520
------------ ------------
STOCKHOLDERS' EQUITY
Preferred stock, Series A, voting, $.01 par value,
authorized, issued and outstanding 264,000 shares 2,640
Common Stock, $.01 par value, authorized 15,000,000
shares, issued and outstanding 5,288,424 shares
in 1996 and 4,233,876 shares in 1995 52,884 42,339
Capital in excess of par value 25,947,474 22,024,604
Accumulated deficit (3,964,297) (4,547,371)
Notes due on common stock purchases (1,946,000)
------------ ------------
Total Stockholders' Equity 20,090,061 17,522,212
------------ ------------
$ 23,238,207 $ 19,895,268
============ ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
STRATASYS, INC.
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------- -------------------------
1996 1995 1996 1995
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
SALES $ 5,316,879 $ 2,128,003 $ 8,069,344 $ 3,819,099
COST OF GOODS SOLD 1,870,301 824,283 2,778,704 1,448,896
----------- ----------- ----------- -----------
GROSS PROFIT 3,446,578 1,303,720 5,290,640 2,370,203
COSTS AND EXPENSES
Research and development 843,246 513,161 1,436,267 951,767
Selling, general and administrative 2,141,540 868,030 3,517,991 1,653,609
----------- ----------- ----------- -----------
2,984,786 1,381,191 4,954,258 2,605,376
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) 461,792 (77,471) 336,382 (235,173)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest income 119,888 43,163 265,384 93,383
Interest expense (8,769) (24,999) (18,692) (31,095)
----------- ----------- ----------- -----------
111,119 18,164 246,692 62,288
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 572,911 $ (59,307) $ 583,074 $ (172,885)
=========== =========== =========== ===========
EARNINGS (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE
Primary $ 0.10 $ (0.02) $ 0.11 $ (0.05)
=========== =========== =========== ===========
Fully diluted $ 0.10 $ (0.02) $ 0.10 $ (0.05)
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING
Primary 5,669,015 3,393,534 5,495,771 3,382,434
=========== =========== =========== ===========
Fully diluted 5,725,264 3,393,534 5,659,117 3,382,434
=========== =========== =========== ===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
STRATASYS, INC.
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30,
-------------------------
1996 1995
(UNAUDITED) (UNAUDITED)
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) $ 583,074 $ (172,885)
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Depreciation and amortization 181,358 99,043
Amortization of intangibles and other assets 232,129 96,635
Bad debts 32,100
Increase (decrease) in cash attributes to
changes in assets and liabilities
Accounts receivable (2,087,500) (569,570)
Inventory (1,333,049) (118,849)
Prepaid expenses (84,101) (21,510)
Accounts payable and other current liabilities 579,329 61,447
Advance deposits from customers 500
Unearned maintenance revenue 278,114 73,757
----------- -----------
NET CASH USED IN OPERATING ACTIVITIES (1,650,646) (519,332)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of marketable securities (100,502)
Proceeds from the sale of machinery and equipment 40,775
Acquisition of machinery and equipment (480,072) (363,363)
Payments of deposits, net (11,000) (14,518)
Payments for intangible assets (594,009) (580,075)
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (1,185,583) (917,181)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of obligations under capitalized leases (82,353) (82,817)
Proceeds from the sale of common stock 1,984,775 522,666
----------- -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,902,422 439,849
----------- -----------
NET DECREASE IN CASH (933,807) (996,664)
CASH AND CASH EQUIVALENTS, beginning of period 4,726,056 4,635,209
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 3,792,249 $ 3,638,545
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION,
cash paid during the period for interest $ 18,692 $ 31,095
=========== ===========
SUPPLEMENTAL SCHEDULES OF NONCASH INVESTING
AND FINANCING ACTIVITIES
During the six months ended June 30, 1996, the Company
issued common stock in exchange for note receivables $ 1,946,000 $ --
=========== ===========
During the six months ended June 30, 1996, the Company
issued common stock in exchange for preferred stock outstanding $ 3,794 $ --
=========== ===========
During the six months ended June 30, 1995, the
Company ender into capital lease agreements
for the acquisition of machinery and equipment $ -- $ 363,602
=========== ===========
During the six months ended June 30, 1995, the Company
issued common stock for the acquisition of intangible assets $ -- $ 2,500,000
=========== ===========
See notes to financial statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
Note 1 -- Basis of Presentation
The financial information herein is unaudited; however, such information
reflects all adjustments (consisting of normal, recurring adjustments) which
are, in the opinion of management, necessary for a fair statement of results for
the interim period. The results of operations for the three months ended June
30, 1996 and the six months ended June 30, 1996 are not necessarily indicative
of the results to be expected for the full year. Certain financial information
and footnote disclosure normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted. The reader is referred to the audited financial statements and notes
thereto for the year ended December 31, 1995, filed as part of the Company's
Annual Report on Form 10-KSB for such year.
Note 2 -- Common Stock
In January 1996, the Company's sole preferred stockholder converted all
264,000 issued and outstanding shares of the Company's preferred stock into
379,437 shares of its common stock.
In the six months ended June 30, 1996, the Company received net proceeds of
approximately $1,985,000 from the exercise of 198,450 warrants at prices ranging
from $5.80 to $18.00 per share and 76,661 options at prices ranging from $1.59
to $7.00 per share.
In May 1996, the Company issued 400,000 shares of the Company's common
stock upon exercise of warrants at prices ranging from $3.00 to $8.00 per share,
and in lieu of cash, the Company received notes for the exercise price of the
stock plus interest at a rate of prime plus 5%. The notes are collaterized by
50% of the shares issued. Subsequent to June 30, 1996, these notes have been
fully paid.
Note 3--- Facility
In March 1996, the Company took possession of 4,752 square feet of
additional office and production space as part of an amended lease agreement
with its present landlord. Future minimum lease payments will be increased
annually by approximately $39,000. Subsequent to June 30, 1996, the Company took
possession of 5,602 square feet of additional office and production space under
this amended lease. Future minimum lease payments will be increased annually by
approximately $41,000.
Note 4--Subsequent Event
Subsequent to June 30, 1996, the Company entered into a capital lease
agreement for the purchase of production equipment. The lease term is for 3
years with minimum lease payments of approximately $53,000 per year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1996 COMPARED WITH THE THREE MONTHS ENDED
JUNE 30, 1995.
Sales for the three months ended June 30, 1996 totaled $5,316,879 compared
with sales of $2,128,003 recorded in the three months ended June 30, 1995, an
increase of $3,188,876, or 149.9%. Revenue for the second quarter of 1996 was
the highest in the history of the Company. The increase over the comparable 1995
period was largely attributable to the continued sales growth of the Company's
FDM(R) 1650 series of rapid prototyping systems. The FDM 1650, which was
introduced in March 1996, replaced the FDM 1600 and offers multiple engineering
materials, including ABS, combined with significant improvements in through-put.
The Company also recorded revenue from its first shipments of the Genisys(TM) 3D
Printer, a product that was developed by IBM and purchased by the Company in
January 1995. Gross margins increased by $2,142,858, or 164.4%, to $3,446,578
for the three months ended June 30, 1996, from $1,303,720 for the three months
ended June 30, 1995. As a percentage of sales, gross margins improved to 64.8%
for the three months ended June 30, 1996, as compared with 61.3% for the three
months ended June 30, 1995. The improvement to the Company's gross margin was
largely due to reductions in material costs combined with a higher selling price
for the Company's FDM 1650 product. The cost reductions were achieved through
both engineering design changes as well as purchasing efficiencies. In addition
to the cost reduction to the material component of cost of goods sold, direct
labor and manufacturing overhead together equaled 8.7% of sales for the three
months ended June 30, 1996, declining from 9.8% of sales for the three months
ended June 30, 1995. This reduction was largely volume related as the Company
was able to efficiently utilize its expanded manufacturing facility and spread
its fixed costs over a larger revenue base.
Selling, General and Administrative ("SG&A") expenses increased to
$2,141,540 for the three months ended June 30, 1996, from $868,030 in the
comparable 1995 period. This represents a $1,273,510, or 146.7%, increase in
SG&A expenses for the 1996 period as compared with the 1995 period. Selling
compensation and related payroll expense, including commissions earned on higher
sales, increased by 124.2% for the 1996 period as compared with the 1995 period.
In 1995 the Company began to expand its domestic and international sales staffs.
This has continued into the second quarter of 1996. The Company has also
established a domestic distributor network for its Genisys product. Non-selling
compensation in SG&A increased by 231.2% for the three months ended June 30,
1996 compared with the three months ended June 30, 1995, as the Company added a
Chief Operating Officer and a new product development group. As a result of the
expanded sales staff, higher sales activity, and new product introductions,
travel expenses increased by 55.5% to $199,268 for the three months ended June
30, 1996 as compared to $128,133 in the same 1995 period. Promotional
activities, recruiting, and amortization expenses increased to $206,588, $52,307
and $147,230, respectively, for the three months ended June 30, 1996, compared
with $60,687, $27,979 and $48,341, respectively, for the three months ended June
30, 1995. SG&A expenses were 40.3% of sales for the three months ended June 30,
1996, compared with 40.8% for the three months ended June 30, 1995.
Research and Development ("R&D") expenses increased to $843,246 for the
three months ended June 30,1996, from $513,161 for the three months ended June
30, 1995, a $330,085, or 64.3% increase. R&D compensation and payroll-related
expenses increased by 26.1% for the three months ended June 30, 1996 as compared
with the comparable 1995 period, while expenses for contract labor increased by
209.3% in the same period. Travel expenses increased by 219.3% to $85,061 for
the three months ended June 30, 1996 as compared with $26,641 for the three
months ended June 30, 1995. Most of this travel was required to coordinate the
activities of the New York R&D facility with the Minneapolis facility.
Depreciation expense increased to $50,478 for the three months ended June 30,
1996, from $22,689 for the comparable 1995, while tooling expense declined by
$38,321 in the 1996 period as compared with 1995. As a percentage of sales, R&D
expenses amounted to 15.9% and 24.1% of sales for the three months ended June
30, 1996 and June 30, 1995, respectively. For the three months ended June 30,
1996, the Company capitalized $234,693 of software development costs, in
accordance with FASB 86, as compared with $316,756 that was capitalized for the
comparable 1995 period. Total expenditures related to the New York R&D facility
amounted to $537,394 for the three months ended June 30, 1996. Of this, $213,023
was capitalized in accordance with FASB 86.
The Company's operating income for the three months ended June 30, 1996
amounted to $461,792 compared with an operating loss of $77,471 for the three
months ended June 30, 1995. Net interest income amounted to $111,119 for the
three months ended June 30, 1996, as compared with net interest income of
$18,164 for the comparable 1995 period.
The Company's net income for the three months ended June 30, 1996, amounted
to $572,911, or 10.8% of sales, compared with a net loss of $59,307, or 2.8% of
sales, for the comparable 1995 period. The earnings per share for the three
months ended June 30, 1996, amounted to $.10 on fully-diluted weighted average
number of common and common equivalent shares outstanding of 5,725,264 as
compared with a loss per share of $.02 on weighted average number of common and
common equivalent shares outstanding of 3,393,534 for the 1995 period.
SIX MONTHS ENDED JUNE 30, 1996 COMPARED WITH SIX MONTHS ENDED JUNE 30,
1995.
Sales for the six months ended June 30, 1996 increased to $8,069,344
compared with sales of $3,819,099 for the six months ended June 30, 1995, an
increase of $4,250,245, or 111.3%. While the FDM 1650 and associated software,
maintenance, and materials revenue accounted for the majority of this revenue
growth, the Company's reported revenue also benefited from the first sales of
its Genisys 3D Printer. Gross margins increased to $5,290,640 for the first six
months of 1996 from $2,370,203 for the comparable 1995 period, an increase of
$2,920,437, or 123.2%. Gross margin as a percentage of sales improved to 65.6%
of sales for the first six months of 1996 compared with 62.1% of sales for the
first six months of 1995. The improvement to the Company's gross margin was
largely due to reductions in material costs combined with a higher selling price
for the Company's FDM 1650 product. The cost reductions were achieved through
both engineering design changes as well as purchasing efficiencies. Direct labor
and manufacturing overhead increased to 9.2% of sales for the first six months
of 1996 compared with 8.6% for the first six months of 1995. The Company was not
able to fully benefit from its expanded manufacturing facility until the second
quarter of 1996. The Company's combined direct labor and manufacturing overhead
amounted to 8.7% of sales in the second quarter of 1996, a considerable
improvement from the 10.1% recorded in the first quarter of 1996.
SG&A expenses increased to $3,517,991 for the six months ended June 30,
1996 compared with $1,653,609 for the six months ended June 30, 1995, an
increase of $1,864,382, or 112.7%. The 112.7% increase in SG&A expenses for the
first half of 1996 slightly exceeded the revenue growth experienced by the
Company for the same period. Selling compensation and related payroll expense,
including commissions earned on higher sales, increased by 88.4% for the six
months ended June 30, 1996 as compared with the 1995 period. Non-selling
compensation in SG&A increased by 189.5% for the six months ended June 30, 1996
as compared with the six months ended June 30, 1995, as the Company added a new
Chief Operating Officer and a new product development group to its existing
staff. Due largely to the Company's expanded sales staff, the establishment of a
new dealer network, and higher sales activity, travel expenses increased by
52.0% to $376,484 for the first six months of 1996 from $247,655 for the
comparable 1995 period. Commissions earned by distributors increased to $222,474
for the first six months of 1996 compared with $0 in the comparable 1995 period.
Promotional expense, including the expenses associated with the Genisys product
introduction, increased to $132,456 for the first six months of 1996 compared
with $25,966 incurred by the Company for the comparable 1995 period, and trade
show expense increased by $49,781, or 54.2%, to $141,546 for the first six
months of 1996 compared with $91,765 incurred in the comparable 1995 period.
Amortization expense, primarily amortization of the purchase price of the rapid
prototyping assets acquired from IBM, increased to $232,129 for the six months
ended June 30, 1996 compared with $96,635 for the six months ended June 30,
1995. SG&A expenses increased to 43.6% of sales for the six months ended June
30, 1996 from 43.3% for the six months ended June 30, 1995.
R&D expenses increased to $1,436,267 for the six months ended June 30,
1996, from $951,767 for the six months ended June 30, 1995, an increase of
$484,500, or 50.9%. Salaries, wages, and related payroll expense increased by
28% for the first six months ended June 30, 1996 compared with the comparable
1995 period. Contract labor increased by 51.6% to $188,611 for the six months
ended June 30, 1996, compared with $124,376 incurred for the six months ended
June 30, 1995. Travel expenses increased to $176,533 for the six months ended
June 30, 1996 from $43,620 incurred in the six months ended June 30, 1995, an
increase of 304.7%. Most of the 1996 travel was incurred to coordinate the
activities of the New York R&D facility with the Minneapolis facility. R&D
expenses declined to 17.8% of revenue for the six months ended June 30, 1996
from 24.9% of revenue for the six months ended June 30, 1995. For the six months
ended June 30, 1996, the Company capitalized $559,464 of software development
costs, in accordance with FASB 86, as compared with $580,076 that was
capitalized for the comparable 1995 period. Total expenditures related to the
New York R&D facility amounted to $1,021,845 for the six months ended June 30,
1996. Of this, $443,929 was capitalized in accordance with FASB 86.
The Company's operating income for the six months ended June 30, 1996
amounted to $336,382, or 4.2% of sales, compared with an operating loss of
$235,173, or 6.2% of sales, for the six months ended June 30, 1995. Net interest
income totaled $246,692 for the six months ended June 30, 1996 compared with net
interest income of $62,288 for the six months ended June 30, 1995.
The Company's net income for the six months ended June 30, 1996 amounted to
$583,074, or 7.2% of sales, compared with a net loss of $172,885, or 4.5% of
sales, for the six months ended June 30, 1995. The earnings per share for the
six months ended June 30, 1996 was $.10 on fully-diluted weighted average number
of common and common equivalent shares outstanding of 5,659,117 as compared with
a loss per share of $.05 on weighted average number of common and common
equivalent shares outstanding of 3,382,434 for the six months ended June 30,
1995.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash deficits from its operations for the six months ended
June 30, 1996 and 1995 were $1,650,646 and $519,332, respectively. A significant
increase in accounts receivable and inventory accounted for $2,087,500 and
$1,333,049, respectively, of the cash deficit for the six months ended June 30,
1996, while an increase in the Company's trade payables and other current
liabilities generated $579,329 of cash in the same 1996 period. Increases in
accounts receivable and inventory of $569,570 and $188,849, respectively,
accounted for most of the cash used for the six months ended June 30, 1995. In
its investing activities, the Company, in the first six months of 1996 used
$1,185,583 in cash, including $480,072 for the acquisition of machinery and
equipment and $594,009 for payments for intangible assets, $559,465 of which
were for the capitalization of software costs in accordance with FASB 86. The
Company used $917,181 in investing activities for the six months ended June 30,
1995, including $363,363 for the acquisition of machinery and equipment and
$580,075 for payments for capitalized software costs. Net cash provided by the
Company's financing activities was $1,902,422 for the six months ended June 30,
1996, as compared to $439,849 for the six months ended June 30, 1995. In the
1996 period, the Company received net proceeds of $1,984,775 from the exercise
of 76,661 options and 198,450 warrants and used $82,353 for payments under
capitalized leases. For the six months ended June 30, 1995 the Company received
net proceeds from the sale of common stock of $522,666, and used $82,817 for
payments under capitalized leases. Net cash for the six months ended June 30,
1996, decreased by $933,807, compared with a net cash decrease of $996,664 for
the six months ended June 30, 1995.
At June 30, 1996, the Company's cash and cash equivalents and marketable
securities balances totaled $10,201,799. This cash will be used by the Company
for additional working capital, for expansion of facilities, for new product
introduction and development, for acquisition of production equipment and
computers, and for increased selling and marketing activities. Management
believes that the Company's revenue from operations, its current cash and cash
equivalents balance, and the proceeds from the sale of short term marketable
securities should provide sufficient cash resources to finance its operations
for at least 24 months.
The Company introduced three new products in March 1996- the FDM 1650, the
Genisys 3D Printer, and the Stratasys 8000. The Company began shipments of the
FDM 1650 in March 1996. The Company began shipments of the Genisys 3D Printer in
June 1996. The Stratasys 8000 is a system that builds larger prototypes than the
Company's current FDM series of rapid prototyping machines. Shipments of the
Stratasys 8000 are targeted to commence as early as the fourth quarter of 1996.
Technical, production, or quality problems could arise, however, that could
delay the shipments of the Stratasys 8000. Although the Company believes that
there is a significant market for the Stratasys 8000 and Gensisys, there can be
no assurance that such market acceptance will occur. Therefore, the Company
cannot predict whether it will derive significant revenue from the sale of these
two products.
As of June 30, 1996, the Company had net accounts receivable of $4,856,510
and inventories of $2,240,368. Total current assets were $17,502,201 compared
with total current liabilities of $3,036,023. The balance sheet indicates that
the Company has a high current ratio. The Company estimates that it will spend
approximately $1,000,000 in 1996 on expansion of its production capacity,
facility's expansion, and the acquisition of production equipment and computers.
As of June 30, 1996, material commitments for the acquisition of production
equipment through a capital lease amounted to approximately $110,000. The
Company also has commitments for facility expansion and the installation of a
new computer system for which the Company expects to spend approximately $95,000
in the third quarter of 1996.
This report contains certain forward-looking statements. Actual results
could differ materially from those projected herein.
PART II
Item 4. Matters Submitted to Securityholders
The Company's Annual Meeting of Stockholders was held on May 23, 1996.
The following Directors, constituting all of the Directors of the Company, were
elected at the meeting to serve as Directors until the next Annual Meeting of
Stockholders and until their successors are duly elected and qualified. The
Directors elected at the Annual Meeting received the number of votes set forth
opposite their respective names:
Votes Cast
For Against Withheld
Election Election Authority/Abstained
Scott Crump 3,491,202 150 20,675
Ralph Crump 3,491,252 100 20,675
Clifford Schwieter 3,491,202 150 20,675
Arnold Wasserman 3,490,402 950 20,675
Gregory Wilson 3,490,902 450 20,675
At the Annual Meeting, the stockholders also approved the following
proposals by the following number of votes:
1. Approval to amend the Stratasys, Inc. 1994-2 Stock Option Plan to
increase the number of shares available for issuance upon the exercise of
options granted thereunder from 500,000 shares of Common Stock to 1,000,000
shares of Common Stock.
For Against Abstain Broker Non-Vote
2,161,238 121,289 12,599
2. Amendment of the Company's Certificate of Incorporation to increase the
number of shares of Common Stock authorized from 8,000,000 to 15,000,000 and to
eliminate the 264,000 shares of Series A Convertible Preferred Stock, $.01 per
value.
For Against Abstain
2,161,126 88,962 10,199
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) No Reports on Form 8-K.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
STRATASYS, INC.
By: /s/ S. Scott Crump
S. Scott Crump
President and Principal
Financial Officer
Dated: August 12, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 3,792,249
<SECURITIES> 6,409,550
<RECEIVABLES> 4,986,510
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0
0
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</TABLE>
