Presstek Comments On Market Conditions, Lawyer Bills and Lasertel Unit
Press release from the issuing company
HUDSON, N.H., Aug. 8 Presstek, Inc. a leading provider of direct digital imaging technologies to the printing and publishing industry responded today to shareholder inquiries regarding recent market conditions, stating that management believes the recent downturn in the company's stock price is not reflective of the company's future business potential.
The company recently reported record product shipments and revenues in the second quarter of 2001 and indicated at that time that it hoped to approximate those same levels in the coming third quarter. The company confirmed today that this goal remains unchanged. The company also previously announced that it had met its production goals for the Dimension platesetter by the end of the second quarter. Additionally, in August, the company announced the appointment of a Director of Pre-Production Engineering with the goal of ensuring consistent production operation and output. While the company also reported that the slowdown in the economy was negatively impacting the sale of its high margin consumable products, the company believes that increasing installations of its DI®-equipped press and platesetter products should provide the framework for significant growth in consumable sales as the economy improves.
The company also indicated in the second quarter that it was experiencing short-term elevated expense levels principally from higher than normal legal fees and continued expenses at its Lasertel unit. The company has implemented cost reductions at Lasertel and continues its efforts to improve its yields on laser diodes. The company re-confirmed today its belief that it will reduce operating costs by the fourth quarter of this year as legal fees return to normal levels; as yield improvements are made at Lasertel; and as further responsive cost reduction measures are implemented at Presstek.
Robert Hallman, president and chief executive officer said, "While the economic environment and new partners provide challenges, I believe that Presstek enjoys a pivotal position in the graphics arts industry, and that its strategic positioning has never been better. As previously stated, we are in ongoing discussions with additional potential partners, and renewed discussions with existing partners. Reflecting on where we are and where we are going, I am looking forward to taking the company to the next level of growth.''
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