Presstek Reports 2001 Results, Back to Breakeven Soon
Press release from the issuing company
HUDSON, N.H., Feb. 21 - Presstek, Inc., a leading provider of direct digital imaging technology, today announced financial results for the fourth quarter and fiscal year ended December 29, 2001.
Fourth Quarter Results
Presstek reported revenues of $23.1 million for the fourth quarter of 2001, compared with $25.0 million in the same period a year ago. The company reported net income for the fourth quarter of 2001 of $37,000, or breakeven on a per share basis, compared to fourth quarter 2000 net income from continuing operations of $2.7 million, or $.08 per diluted share.
Revenues for the fourth quarter of 2001 consisted of $20.7 million of product sales and $2.4 million of royalties and fees from licensees, compared with $23.0 million of product sales and $2.0 million of royalties and fees from licensees in the fourth quarter of 2000. Revenues for the fourth quarter of 2001 include $0.8 million in fees from Heidelberg related to the arbitration settlement, as well as a charge for sales returns of $1.5 million related to a December 2000 sale at Lasertel. Plate media revenues for fourth quarter 2001 were $12.4 million, compared to $12.9 million for the fourth quarter 2000. Revenues from equipment sales to Heidelberg, including royalties, for the fourth quarter of fiscal 2001 were $3.4 million, compared to $6.3 million for the same period in 2000. Total Heidelberg revenues for fourth quarter 2001 were $9.6 million, compared to $12.1 million for fourth quarter of 2000. Results for the fourth quarter of 2001 at Presstek's Lasertel subsidiary included a net loss of $3.4 million, $1.5 million of which was recorded as a sales return, $1.4 million as cost of sales, and $0.5 million as operating expenses.
Comments on the Fourth Quarter
Commenting on the fourth quarter, Presstek's President and Chief Executive Officer Robert Hallman said, "The sluggish economy and slowdown in the printing industry continues to affect Presstek's business. Shipments of our DI imaging kits and presses were lower than expected at 70 units, primarily due to a reduction in imaging kit shipments to Heidelberg. Dimension shipments were steady at 32 units for the fourth quarter of 2001. A $1.5 million increase in plate shipments over the third quarter, together with reduced warranty expenditures resulted in gross margins of 38% for the fourth quarter of 2001.''
"Decreased operating expenses of $8.3 million reflect the expected reduction in legal expenses of $0.6 million, as well as other reductions related to the cost control measures implemented at the end of the third quarter. Also included in the fourth quarter results were severance costs of $0.5 million related to a work force reduction completed in January 2002,'' Hallman said.
Hallman continued, "As anticipated, liquidity improved in the fourth quarter. While cash and cash equivalents held steady at $2.5 million, borrowings decreased by $2.1 million, including a reduction in the use of our revolving credit line of $1.5 million. Capital expenditures fell to $0.8 million, down from $1.6 million in the third quarter of 2001. We expect that further reductions in our capital requirements, together with the ongoing cost reductions and close management of our working capital will contribute to further improvement in our liquidity in 2002.''
Full Year 2001 Results
Presstek reported revenues of $102.3 million for fiscal year 2001, up 17% from $87.3 million for fiscal year 2000. The company reported a net loss for the year of $1.7 million, or $.05 per basic and diluted share, compared to net income from continuing operations of $5.3 million, or $.15 per diluted share for fiscal 2000.
Revenues for fiscal year 2001 consisted of $93.6 million of product sales and $8.7 million of royalties and fees from licensees, compared with $78.1 million of product sales and $9.2 million of royalties and fees from licensees in fiscal year 2000. Plate media revenues for fiscal year 2001 were $46.9 million, compared with $44.9 million in 2000. Revenues from equipment sales to Heidelberg, including royalties, for 2001 were $20.7 million, versus $30.7 million in 2000. Total Heidelberg revenues for 2001 were $42.6 million, compared to $49.4 million in 2000. Net losses for fiscal year 2001 at Presstek's Lasertel subsidiary were $11.3 million.
Comments on 2001 and 2002 outlook
Commenting on 2001 and the outlook for 2002 Robert Hallman said, "Like other businesses managing through a difficult economic climate, Presstek's results also reflected the printing industry's worst recession in 20 years. Although the economic outlook for 2002 remains uncertain, we are confident in our growth strategy and potential. We made substantial progress on our strategic objectives in 2001, and believe that by continuing to leverage our growth strategy, we can deliver financial success going forward.''
"The cost reductions and operational changes implemented late in 2001 and into early 2002 have begun to show results,'' said Hallman. "We are focused on continuing to control our costs and expect to reduce operating expenses in 2002 by approximately 20%. Looking ahead, the industry slowdown is expected to continue through at least the first half of 2002. Accordingly, we are expecting earnings to be breakeven on slightly decreased revenues in the first quarter of 2002. More importantly though, we are planning for modest revenue growth and positive earnings for the full year 2002.''
Hallman continued, "Presstek's strategy for growth is based on our expertise and intellectual property in the core technologies essential to digital imaging -- chemistry-free printing plate media, laser technology and DI press design and controls. Our goal is to continue to exploit Presstek's leadership position to grow the DI press market and to further our foothold in our segment of the off-press computer-to-plate (CTP) market.''
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.