By Trevor Shackelford August 5, 2005 -- Presstek (NASDAQ: PRST) today announced their second quarter earnings results. The company reported revenue of $69.7 million, down slightly from $70.4 million last quarter and $22.7 million in the Q2 2004. Net income for the quarter was $2.3 million, or $0.07 per share, compared to $1.45 million, or $0.04 per share, in the same period last year. According to the company, the integration of ABDick is progressing ahead of expectations. The company has also seen positive signs from its initiative to train ABDick sales reps to cross-sell Presstek products. Topics of this Summary Quarter Highlights Segment Performance Guidance Raine Radar Q & A Quarter Highlights Cash balance at the end of the quarter was $11.1 million, down from $12.8 million at the end of the first quarter Total debt decreased to $33.1 million from $39.6 million at the end of the first quarter EBITDA for the Q2 was $6.0 million Segment Performance Presstek Core Revenue for Presstek’s DI and CTP business reported $28.7 million in revenues for the second quarter, up 11% from the Q1. Gross margins increased to 41% from 37% last quarter. Income from operations for the segment was $4.7 million. The segment saw benefit from taking initial orders from the ABDick channel as well as a large bump in DI press and consumable sales. Lasertel External Lasertel sales were $0.7 million. Lasertel’s reported an operating loss of $1.1 million, compared to $0.8 million in the same period last year. During the quarter, the company inked a deal with defense contractor SELEX Sensors and Airborne Systems to be the preferred supplier of laser components and assemblies. Revenue decreased temporarily as a result of the transition. ABDick ABDick posted second quarter revenue of $43 million. The business reported operating income of $0.7 million, up from $0.2 million last quarter. The unit has undergone some slimming in the last quarter, removing unprofitable products from the mix and replacing them with Presstek products that the ABDick channel can also sell. Precision Revenues from Precision Lithograining were $6.2 million in the second quarter, down from $6.7 million last quarter. The segment reported income from operations of $0.4 million. The unit has begun to eliminate some of its analog offerings in favor of higher margin digital work. Guidance The company reaffirmed its plans to achieve an annualized revenue run-rate of at least $300 million by the end of 2005, with an annualized EBITDA run-rate of $30 million or greater. Raine Radar Presstek has had a very busy quarter. Lasertel signed a major deal with defense contractor SELEX. The company has also had the flexibility to strip out some of the low performing non-strategic products. This focus left revenues flat for the quarter, but allowed the bottom line to increase. For future growth, the company is moving fast to attain one of the most important synergies from the acquisition of ABDick: the sales force. Over the last three months, the company has made some serious headway in training sales to be able to cross-sell Presstek technology products. It’s a good example of how to use an acquired (or partnered) firm’s sales staff and customer database as a channel to sell your complimentary product lines. Wall Street has been pleased also; in the last 3 months, the stock price has appreciated about 75%. All in all, a solid quarter. Q & A The company purged an estimated $1 million - $2 million in revenue from discontinued products. The Presstek technology products, both through traditional channels and through the ABDick channel, will drive the organic growth this year that will help the company attain its run-rate goal. Although the number of small commercial printers is likely contracting, those investing in digital technology is increasing and many are flourishing – a positive sign for the company. Sales people have been pulled together out of the field for training twice during the second quarter. The average sales cycle for a DI press is in the 3 – 6 month range. The commercial print market seems to be improving, according to Presstek management. The SELEX account is considered a marquis account that could lead to major growth for the Lastertel subsidiary.