Presstek Narrows Loss for Fiscal Year, Logs Third 75DI Press Order
Gross margin percent for 2010 was 32.6 percent, compared to 31.4 percent in 2009. The improvement vs. 2009 was due primarily to increased manufacturing efficiencies.
Fiscal 2010 operating expenses of $48.7 million represented a reduction of $24.9 million from the prior year. Excluding the impact of the one-time write-off of goodwill in the second quarter of 2009 and the customer bad debt reserve in the fourth quarter of 2010, operating expenses declined by $7.7 million, or 14 percent. The decline in operating expenses was primarily related to reduced payroll costs and professional service fees, partially offset by increased non-cash equity-based compensation expenses.
Debt net of cash totaled $6.1 million at the end of the year, a reduction of $6.0 million versus 2009 and a reduction of $0.8 million from the end of the 2010 third quarter. The primary cause of the full year reduction was the net cash proceeds received from the sale of the company’s non-core Lasertel subsidiary and the improvement from the third quarter was primarily due to net cash provided by operations in the fourth quarter of 2010.
“Despite the impact of the economy we have maintained our positive adjusted EBITDA levels for the fifth consecutive quarter and during fiscal 2010 reduced our debt net of cash position by $6.0 million, a 50 percent reduction from 2009,” said Presstek Executive Vice President and Chief Financial Officer Jeff Cook. “We expect first quarter 2011 revenue and adjusted EBITDA to be within the range of our fourth quarter 2010 results. Additionally, we believe that with changes in international tax planning strategies, we could be in a position to reverse the fourth quarter 2010 valuation allowance against deferred tax assets in future periods.”
“While our revenue did not rise to the level we would have liked in 2010, the year was filled with many achievements for Presstek,” commented Jacobson. “Now that 2010 is behind us we can look back at the many accomplishments we have had. During 2010 we: