Presstek Reports 47% Revenue Growth, Warns of Flat First Quarter
Press release from the issuing company
HUDSON, N.H., Feb. 21- Presstek, Inc. (Nasdaq: PRST), a leading provider of direct digital imaging technology, today announcedfinancial results for the fourth quarter and fiscal year ended December 30, 2000.
Presstek's revenues from continuing operations for the fourth quarter of 2000 increased 47% to $25.0 million from $17.0 million in the same period a year ago. Revenues for the quarter consisted of product sales of $23.0 million and $2.0 million of royalties and fees from licenses, compared with product sales of $14.7 million and $2.3 million of royalties and fees from licenses in the fourth quarter of 1999. Net income from continuing operations for the fourth quarter of 2000 was $2.7 million, or $.08 per diluted share, compared to 1999 fourth quarter net loss from continuing operations of $22.8 million, or $.70 per diluted share, after recognition of the class action settlement.
Net income including discontinued operations for the fourth quarter of 2000, was $3.3 million, or $.09 per diluted share, compared to a net loss, including discontinued operations, of $20.9 million, or $.64 per diluted share for the fourth quarter of 1999.
Commenting on the fourth quarter, Presstek's Chief Financial Officer Neil Rossen said, "While we are pleased with the double-digit growth in revenues over the third quarter of 2000, we believe it could have been an even stronger quarter based on the momentum our products are generating in the marketplace."
"As we previously announced, we were facing some uncertainty entering the fourth quarter about the outlook for shipment levels and schedules for our new DocuColor and Dimension products. And we did, in fact, experience some shipping delays in the fourth quarter that kept our revenues below the upper range of what we had projected. Demand, however, continues to be strong and our partnerships continue to be active."
Presstek reported revenues from continuing operations of $87.3 million for year 2000, up 59% from $55.0 million for 1999. Net income from continuing operations rose to $5.3 million, or $.15 per diluted share for 2000, compared to a net loss from continuing operations of $30.6 million, or $.95 per diluted share for 1999, after recognition of the class action settlement. Net income for 2000, including discontinued operations, was $5.9 million or $.17 per diluted share, compared to a net loss of $39.6 million or $1.23 per diluted share for 1999.
"After the revenue growth momentum of the past five quarters, we now anticipate that first quarter revenues will be flat or increase moderately over the fourth quarter of 2000," said Rossen. "As we continue to ramp up production of our recent product introductions, we are experiencing some production delays which will impede the near-term outlook. Primary objectives for the first quarter of 2001 are to resolve these delays and to improve our production and shipping capabilities in order to supply sufficient levels of DocuColor and Dimension products to satisfy orders on-hand. We are aggressively investing in Lasertel's efforts to penetrate the telecommunications, medical and defense markets. As a result, we expect our Lasertel operations will decrease earnings by approximately $.05 per share in the first quarter of 2001. We anticipate that Lasertel will be a positive contributor to earnings beginning in the second quarter. Including the impact of Lasertel, we anticipate positive earnings in the first quarter of 2001 in the range of $.03 to $.05 per share, on a consolidated basis."
"Looking further ahead," Rossen said, "our prospects for our core business are bright. We continue to expect overall 2001 revenues to increase significantly over fiscal 2000, and be in the range of $135 million to $155 million. Earnings per share are expected to range from $0.45 to $0.58. Our earnings per share estimate is after depreciation and amortization, which is expected to be approximately $.20 per share in 2001. Internal cash generation together with available lines of credit is expected to be adequate to meet our core business operational goals in 2001."
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