Presstek Reports Financial Results for the First Quarter; Reaffirms Expectation of Positive Adjusted EBITDA for 2012
Gross margin percent was 27.0% compared to 31.2% in the first quarter of 2011. Lower margins were primarily the result of unfavorable equipment and consumable product mix, higher DI equipment costs resulting from a stronger yen, and unabsorbed manufacturing overhead in our factories resulting from lower overall production.
First quarter operating expenses declined $3.2 million, or 28%, to $8.0 million compared with the prior year period. 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")
Debt net of cash, which improved from $11.2 million to $8.8 million on a sequential quarter basis, closed at its lowest level since the fourth quarter of 2010 resulting from a continued emphasis on effectively reviewing and managing working capital.
Information Regarding Non-GAAP Measures In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides non-GAAP financial measures, including operating expenses excluding special charges; adjusted EBITDA; debt net of cash; and other GAAP measures adjusted for certain charges, which the Company believes are useful to help investors better understand its past financial performance and prospects for the future. A full reconciliation of GAAP to non-GAAP measures is provided in the supplemental financial information provided with this press release.
Presstek, Inc. is a leading supplier of digital offset printing solutions to the printing and communications industries. Presstek's DI digital offset solutions bridge the gap between toner and conventional offset printing, enabling printers to cost effectively meet increasing customer demand for high quality, short run color printing with a fast turnaround time while providing improved profit margins. The Company's CTP portfolio ranges from two-page to eight-page systems, many of which are fully automated. These systems support Presstek's line of chemistry-free plates as well as Aeon, a no preheat thermal plate which offers run lengths up to one million impressions and PhD 830, a high resolution preheat, thermal CTP plate that offers run lengths of one million and more impressions. Presstek also offers a range of workflow solutions, pressroom supplies, and reliable service. Presstek is well positioned to support print environments of any size on a worldwide basis.