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Presstek Reports Improved 2010 Second Quarter Operating Profits

August 9, 2010
GREENWICH, CT—Aug 09, 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 second quarter ended July 3, 2010. In the quarter, the company reported adjusted EBITDA of $0.3 million, an improvement of $2.3 million when compared to the second quarter of 2009. Excluding the one-time costs of the Ipex tradeshow, which occurs once every four years, adjusted EBITDA would have been $0.7 million, or an improvement of $2.8 million from the prior year's second quarter.

Highlights:


• 75DI digital offset press draws large crowds at the Ipex tradeshow in the UK

• Year-on-year CTP plate and DI plate revenue growth of 8% and 4%, respectively

• 18% reduction in Operating expenses excluding special charges

• $2.3 million improvement in year-on-year adjusted EBITDA

In May 2010 the company previewed its new 75DI digital offset press at the Ipex tradeshow in the United Kingdom to considerable interest and favorable reviews from the industry. The Presstek 75DI with its revolutionary 6-minute job-to-job turnaround, high quality output and expanded sheet size fits perfectly within the Company's up-market strategy. The 75DI has been engineered to produce pages at a manufacturing cost of below a penny per page. This new press, which will be commercially available in 2011, will increase efficiency and provide improved productivity and profitability for Presstek's customers.

The company reported total revenue of $31.6 million in the second quarter of 2010, a decline of 6% from the amount reported in the second quarter of 2009. It had an operating loss of $1.8 million in the second quarter of 2010, a $21.0 million improvement from a loss of $22.7 million in the 2009 second quarter. Excluding a one-time $19.1 million charge for the write-off of goodwill in the second quarter of 2009, operating income improved by $1.9 million from 2009 levels.

During the second quarter of 2010, the Company incurred a net loss from continuing operations of $1.8 million, or $0.05 per share, compared to a net loss from continuing operations of $39.9 million, or $1.09 per share, in the second quarter of 2009. The 2009 second quarter results included the one-time charges for the write-off of goodwill and deferred tax assets of $19.1 million and $16.8 million, respectively. Excluding those special charges the 2010 net loss from continuing operations represents an improvement of $2.1 million versus the 2009 second quarter.

"We have now achieved positive adjusted EBITDA levels in each of our last three quarters and we were pleased to see the continuing development of our 'growth' consumables of CTP and DI plates which increased 8% and 4%, respectively, versus the prior year's quarter," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. "However, during the quarter we saw a reluctance by our North American base of small to mid-sized customers to make capital equipment purchases primarily due to reduced access to financing and an increased skepticism that the US economic recovery was sustainable in the near term. Operationally, we continue to reap the benefits of our operational discipline as our adjusted EBITDA improved $2.3 million in the quarter compared to the 2009 quarter."
 

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