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Presstek Narrows Loss for Fiscal Year, Logs Third 75DI Press Order

March 14, 2011
GREENWICH, CT—March 14, 2011—Presstek Inc., a leading supplier of digital offset printing solutions to the printing and communications industries, reported financial and operating results for the fourth quarter and fiscal year ended Jan. 1, 2011.

In the quarter, the company reported total revenue of $31.1 million, a decline of 7 percent from the amount reported in the fourth quarter of 2009, and adjusted EBITDA of $0.6 million, a reduction of $0.5 million when compared to the prior year fourth quarter.

For fiscal 2010, it reported total revenue of $128.6 million, a decline of 4 percent from 2009, and adjusted EBITDA of $4.0 million, a $5.6 million improvement from the prior year. The company also reported a 50 percent reduction in debt net of cash in 2010.

During the fourth quarter of 2010, Presstek recorded two significant non-cash charges, a $1.9 million expense related to a single customer bad debt reserve and a $2.7 million valuation allowance against certain deferred tax assets outside the United States. Although reserved in the fourth quarter, the benefits of these deferred tax assets remain available to offset the company’s future income tax liabilities. Presstek anticipates implementing tax planning strategies which management believes will make possible the reversal of some or all of this allowance in future periods.

Including these non-cash charges, the company had an operating loss of $3.4 million in the fourth quarter of 2010 vs. an operating loss of $0.7 million in the 2009 fourth quarter. The majority of the increased operating loss in the fourth quarter of 2010 relates to the $1.9 million customer bad debt reserve referenced above with the remainder relating primarily to a $0.8 million increase in non-cash equity-based compensation charges.

For fiscal 2010, the company had a full-year operating loss of $6.8 million, an improvement of $24.6 million from the $31.4 million operating loss in 2009. The 2009 results include a $19.1 million charge for the write-off of goodwill. Excluding the goodwill write-off in 2009 and the customer bad debt reserve in 2010, operating loss improved by $7.4 million during fiscal 2010.

Inclusive of the non-cash charges referenced above, Presstek incurred a net loss from continuing operations during the fourth quarter of 2010 of $6.7 million, compared to a net loss of $1.5 million in the fourth quarter of 2009. The company’s 2010 net loss from continuing operations was $10.6 million, compared to a net loss of $49.1 million in 2009. The 2009 results included special charges for the write-off of goodwill and deferred tax assets of $19.1 million and $16.8 million, respectively. Excluding the non-cash charges for 2009 and 2010, net loss from continuing operations improved by $7.3 million vs. 2009.

“2010 was again a difficult year in our industry, but I was pleased with our ability to not only continue to generate positive quarterly adjusted EBITDA but to increase it by $5.6 million on a full year basis compared to 2009,” said Presstek Chairman, President and CEO Jeff Jacobson. “Additionally, in 2010 we reduced our debt net of cash by $6.0 million against a backdrop of a 4 percent decline in overall revenues.
 

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