Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Designs On This Gizmo Maker


Inside Wall Street

DESIGNS ON THIS GIZMO MAKER

Stratasys (SSYS) has a strange name. And it's odd in another way: It wasn't a hot stock when it went public in October, at 5 a share, but this year it has been a scorcher, climbing from 6 in early June to 143/4 on Aug. 29. The company lost $1.1 million in 1994, on sales of $3.8 million. So what's going on?

Analysts are projecting big numbers: They claim 1995 sales will jump to $9 million, with earnings of $164,000, or 7 cents a share. Next year, projections are even rosier: sales of $24 million and earnings of $2.3 million, or 74 cents. Pie in the sky? Not so, says analyst John Duffy of Brookehill Equities, who predicts the stock will hit the low 30s in two years.

Stratasys is in "rapid prototyping." It makes gizmos that let engineers create models out of plastic, working directly from computer designs, in a matter of hours. In many industries, prototypes are still produced by hand-sculpting or machining that takes weeks.

With such advanced technology, "the likes of General Electric, Dow Chemical, or Union Carbide would like to acquire Stratasys while it's cheap," says one investor. "It's a high-margin business."

One big holder, with 13.7%, is IBM. The stake stemmed from Stratasys' purchase in January of IBM's prototyping technology. The deal merged IBM's technology with Stratasys' system.

Joe Salvani, president of Salvani Investments, has acquired 3% of Stratasys and says it's one of the few companies that applies its own technology toward making an end-product. He says the company is working with Ford Motor for a device big enough to make actual-size prototypes of cars.BY GENE G. MARCIAL


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus