Presstek Reports Improved 2010 Third Quarter Operating Profits
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.
-- Consumables revenue totaled $20.6 million in the third quarter of 2010, compared with $22.2 million for the same period last year primarily due to reductions in "traditional" product categories of $1.4 million and in legacy Anthem CTP plates of $0.3 million. This more than offset increases in the open format CTP plates of Aeon and Aurora Pro, which increased 48% from the prior year quarter. Year-to-date the Company has closed on approximately 60 new CTP plate accounts that should equate to an annual run-rate of approximately $2.8 million of new thermal CTP plate sales.
-- Service revenue declined approximately 16 percent to $6.1 million in the third quarter of 2010 compared to the year ago quarter. This drop is primarily due to the continued erosion of the analog service base and a general trend by customers to delay service calls and maintenance to save money in a difficult economy.
Gross margin percent for the third quarter of 2010 was 32.8% compared to 23.3% in the third quarter of 2009. The improvement versus the third quarter of 2009 was due primarily to the impact of the $2.7 million inventory-related charge taken in the third quarter of 2009, favorable manufacturing productivity and a favorable mix of DI equipment sales, partially offset by lower service margins and a lower mix of higher margin consumables.