Presstek Releases Q4 Financial Results; 2012 Outlook Positive
Fourth Quarter 2011 Financial Results Total revenue in the fourth quarter of 2011 was $29.8 million, a decrease of $1.2 million from the fourth quarter of 2010.
- Equipment revenue increased $0.5 million, to $6.0 million, in the fourth quarter of 2011 compared with the same prior year period due to a favorable mix of DI press sales.
- Consumables revenue totaled $18.1 million in the fourth quarter of 2011 compared with $19.5 million for the same period last year due primarily to reductions in legacy product categories.
- Service revenue declined $0.3 million in the fourth quarter of 2011 compared to the year ago quarter due to lower contract service and parts revenue.
Gross margin percent for the fourth quarter of 2011 was 25.0 percent compared to 31.9 percent in the fourth quarter of 2010. Lower margins were primarily the result of a lower mix of higher margin consumables revenue, a stronger yen, and unabsorbed manufacturing overhead in our factories resulting from lower overall production.
Total operating expenses in the fourth quarter were $10.5 million, compared with $13.3 million in the prior year period. Operating expenses, excluding special charges, declined by $3.8 million, or 29 percent, from the fourth quarter of 2010. The decline in operating expenses was primarily related to reduced payroll and other costs resulting from recent cost reduction initiatives, as well as reduced bad debt and stock compensation expenses. (See "Information Regarding Non-GAAP Measures")
2011 Financial Results Total revenue in 2011 was $120.0 million, a decrease of 6.7 percent, or $8.6 million, from 2010.
- Equipment revenue decreased 3.1 percent to $20.7 million in 2011 compared with last year. The Company did, however, sell five 75DI presses on three different continents during the year.
- Consumables revenue totaled $76.3 million in 2011 compared with $82.3 million for the prior year resulting from general declines in our plate and consumables product lines.
- Service revenue declined 7.6 percent, to $23.0 million in 2011 compared to the prior year primarily due to a decline in our analog service customer base.
Gross margin percent for 2011 was 28.9 percent compared to 32.6 percent in 2010. The reduction was primarily the result of unfavorable equipment and consumables product mix, a stronger yen, and unabsorbed manufacturing overhead in our factories.