Presstek Announces Sixth Consecutive Quarter of Increased Revenues
Press release from the issuing company
HUDSON, N.H., April 25 - Presstek, Inc. (Nasdaq: PRST), a leading provider of direct digital imaging technology, today announced financial results for the first quarter ended March 31, 2001.
Presstek's revenues for the first quarter of 2001 increased 36% to $25.8 million from $19.0 million in the same period a year ago. Net income for the first quarter of 2001 was $973,000, or $.03 per diluted share, compared to $391,000, or $.01 per diluted share, for the first quarter of 2000. Revenues for the quarter consisted of product sales of $23.7 million and $2.1 million of royalties and fees from licensees, compared with product sales of $17.1 million and $1.9 million of royalties and fees from licensees in the first quarter of 2000. Plate media revenues for first quarter 2001 were $12.5 million, up 30% from $9.6 million in the first quarter of 2000. Revenues from equipment sales to Heidelberg, including royalties, for the first quarter of 2001 were $6.2 million, compared to $7.2 million for the same period in 2000.
Total Heidelberg revenues for first quarter 2001 were $11.3 million, compared to $10.8 million for the first quarter of 2000. Results for the first quarter also include $2.8 million of start-up costs at Presstek's Lasertel subsidiary, $1.9 million of which was recorded as cost of sales and $900,000 as operating expenses. As anticipated, Lasertel did not record any revenues during the first quarter.
Commenting on the first quarter, President and Chief Executive Officer Robert Hallman said, "Our core graphics business continues to gather momentum with revenues growing to $25.8 million from $23.5 million in the fourth quarter of 2000. Demand for product in our core business remains strong despite the general economic slowdown. In particular, our Dimension/Anthem computer-to-plate (CTP) offering appears to be gaining widespread interest across our industry. In addition, during the first quarter we addressed many of the production delays we experienced late last year."
Hallman continued, "The equipment and process qualification, and particularly the material usage, necessary to refine the manufacturing process at Lasertel, exceeded expectations by approximately $800,000. Total capital expenditures in the quarter were $5.5 million, including $4.2 million at Lasertel. While our investment in Lasertel is necessary to secure a reliable source of the high-powered semiconductor laser diodes essential to Presstek's business, we accelerated that investment in the first quarter to enable Lasertel's early involvement in the defense, telecommunications, and medical markets. We believe that as Lasertel expands its participation in these
markets, it will contribute to overall shareholder value."
Commenting on the company's financial outlook, Presstek's Chief Financial Officer Neil Rossen said, "We anticipate that revenues in the second quarter of 2001 will increase to approximately $30 million as we continue to ramp up manufacturing of our recent product introductions. As an indication of the progress we are making in this area, we anticipate shipping approximately 40 Dimensions in the second quarter compared to 24 in the first quarter of this year, with production levels expected to reach five units per week by the third quarter. We expect Lasertel's results to continue to negatively affect earnings by approximately $1 million in the second quarter as its external sales cycle is expected to extend over a longer period than originally anticipated. Net earnings per share in the second quarter, including Lasertel, are anticipated to be in the range of $.07 to $.09 per share."
"Looking further ahead," Rossen said, "prospects for our core business are bright. In view, however, of the general economic uncertainties, we believe it is prudent to modify our full-year outlook. We continue to expect overall 2001 revenues to increase significantly over fiscal 2000, and to be in the range of $130 million to $148 million. Earnings per share for the full year 2001 are expected to range from $0.39 to $0.50. Our 2001 earnings per share estimate is after depreciation and amortization, which is expected to be approximately $.20 per share. We expect internal cash generation together with available lines of credit, to be adequate to meet our core business operational goals in 2001 and the foreseeable future."
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