Presstek Reports Improved Sequential First Quarter 2011 Revenue and Profit
"We successfully completed installation of our first 75DI during the quarter, and the sales prospect funnel for the 75DI continues to be robust. It's exciting to see the different types of customer solutions that the 75DI press can serve, including folding cartons, book covers, and applications requiring sensitive treatment of various substrates. In fact, the high level of interest generated by the 75DI has led to increased awareness of the 52DI. I'm also pleased that compared to the first quarter of 2010, consumable sales from our 52DI solutions increased 23% and consumable sales from our open architecture computer-to-plate solutions increased 31% during the first quarter of 2011." (See "Information Regarding Non-GAAP Measures")
First Quarter 2011 Financial Results Total revenue in the first quarter of 2011 was $31.9 million, up $0.8 million from the previous quarter and a decrease of $2.6 million from the first quarter of 2010.
• Equipment revenue decreased $1.3 million, to $5.1 million in the first quarter of 2011, compared with the same period last year.
• Consumables revenue totaled $20.7 million in the first quarter of 2011, compared with $21.5 million for the same period last year, as bad weather across much of the U.S. and Canada during January and February resulted in reduced customer demand. However, March sales showed a strong recovery, resulting in a sequential quarterly increase of 6.4%. Consumable sales in the Europe, Africa and Middle East Region during the first quarter were up 11.4% from the comparable year-ago quarter.
• Service revenue declined 8.7% to $6.0 million in the first quarter of 2011 compared to the year-ago quarter. This decline is primarily due to the continued erosion of the analog service base, lower installation revenue and a general trend by customers to delay service calls and maintenance to save money in a difficult economy. Service revenue has remained fairly stable during the past four quarters.