Presstek Narrows Loss for Fiscal Year, Logs Third 75DI Press Order
• Equipment revenue decreased $0.3 million, to $5.5 million in the fourth quarter of 2010, compared with the same period last year. The slight decrease versus the prior year’s quarter is due primarily to an unfavorable shift in product mix.
• Consumables revenue totaled $19.5 million in the fourth quarter of 2010, compared with $20.6 million for the same period last year, as increases in CTP plates of 10 percent from the prior year quarter were more than offset by reductions in "traditional" product categories.
• Service revenue declined approximately 15 percent to $6.0 million in the fourth quarter of 2010 compared to the year ago quarter. This drop 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.
Gross margin percent for the fourth quarter of 2010 was 31.9 percent, compared to 33.9 percent in the fourth quarter of 2009. The reduction vs. the fourth quarter of 2009 was due primarily to lower service margins and a lower mix of higher margin consumables.
Excluding the $1.9 million non-cash charge in the fourth quarter of 2010 for a customer bad debt reserve, operating expenses declined by $0.6 million, or 5 percent, from the fourth quarter of 2009. The decline in operating expenses was primarily related to reduced payroll costs, professional service fees and restructuring charges, partially offset by increased non-cash equity-based compensation expenses.
2010 Financial Results
Total revenue in 2010 was $128.6 million, a decrease of 4 percent or $5.9 million from 2009. In 2010, equipment revenue increased 9 percent to $21.4 million compared with last year. Consumables revenue totaled $82.3 million in fiscal 2010 vs. $85.7 million for the prior year. Revenue in our “growth” consumables, DI and CTP plates, increased by 4 percent from the prior year but this increase was more than offset by reductions in “traditional” product categories. Service revenue declined approximately 14 percent to $24.9 million in 2010 compared to the prior year due to the factors noted in the fourth quarter discussion above.