Presstek Reports Improved 2010 Third Quarter Operating ProfitsNovember 8, 2010
HUDSON, NH—11/08/2010—Presstek, Inc. (NASDAQ: PRST), a leading supplier of digital offset printing solutions to the printing and communications industries, today reported financial and operating results for the third quarter ended October 2, 2010. In the quarter, the Company reported total revenue of $31.4 million, a decline of 5% from the amount reported in the third quarter of 2009, and adjusted EBITDA of $1.3 million, an improvement of $2.4 million when compared to the prior year third quarter. (See "Information Regarding Non-GAAP Measures")
The Company also reported that it has received the initial order for its new 75DI digital offset press. The 75DI press, which has been engineered to produce pages at a cost of below a penny per page, had a very successful North American debut at the Graph Expo tradeshow in Chicago, receiving considerable interest from customers and accolades from the industry.
In the third quarter of 2010 the Company had an operating loss of $1.3 million, a $4.8 million improvement from the loss in the 2009 third quarter. Excluding a one-time inventory-related charge of $2.7 million in the third quarter of 2009, operating income improved by $2.1 million from 2009 levels. During the third quarter of 2010, the Company incurred a net loss from continuing operations of $1.5 million, or $0.04 per share, compared to a net loss from continuing operations of $6.6 million, or $0.18 per share, in the third quarter of 2009. (See "Information Regarding Non-GAAP Measures")
"We are extremely pleased with the success of our 75DI press at Graph Expo," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. "This is exciting not only because of the interest generated for all of our products at that show, but also because of the way the 75DI is elevating the perception of Presstek within the graphics industry. We have long believed that the 75DI with its revolutionary 6-minute job-to-job turnaround, high quality output and expanded sheet size fits perfectly within our up-market strategy. It was extremely gratifying to see that play out with high profile customers and industry experts at Graph Expo."
Third Quarter 2010 Financial Results Total revenue in the third quarter of 2010 was $31.4 million, a decrease of $1.6 million from the third quarter of 2009. On a sequential quarter basis, total revenue remained relatively stable.
-- Equipment revenue increased 31%, or $1.1 million, to $4.8 million in the third quarter of 2010, compared with the same period last year. The increase versus the prior year's quarter is due primarily to an increase in DI press revenue of $0.7 million. The DI increase is caused by a favorable shift in product mix with increased sales of 52DI units.