Presstek Reports Financial Results for the First Quarter; Reaffirms Expectation of Positive Adjusted EBITDA for 2012
“At the drupa 2012 trade show, the highlight of the event for us was the global commercial introduction of the 75DI, our revolutionary B2 format digital offset press, with a number of important capability enhancements. Through the first 11 days of the 14 day show we conducted more than 100 individual customer demonstrations on this press and the early feedback and interest has been very favorable. We achieved a significant milestone, just prior to drupa 2012, with the announcement of one of our largest 75DI press orders to date to a North American based packaging printer. The packaging industry is a growth segment of the printing market, and we believe this press, due to its unique operating advantages, is an ideal solution for the shorter run lengths and increased versioning which are becoming more prevalent particularly in the folding carton sector of the packaging industry.
“Our growth strategy, which centers on enhancing our product portfolio to meet the requirements of larger commercial printers and the packaging market, expanding our base of recurring revenue from consumables, and leading with innovative products like the 75DI is beginning to gain traction.”
First Quarter 2012 Financial Results Total revenue in the first quarter was $27.0 million, a decrease of $4.9 million from the first quarter of 2011.
• Equipment revenue decreased $1.6 million, to $3.5 million, compared with the same prior year period. Although sales of DI units improved year over year, a higher mix of refurbished units resulted in a reduction in revenues.
• Consumables revenue totaled $17.6 million compared with $20.7 million for the same prior year period resulting primarily from generally weak economic conditions, particularly in Europe, as well as the gradual erosion of some of our legacy product lines.
• Service revenue of $6.0 million was essentially flat compared to the year ago quarter.