Presstek's Strategic Initiatives Strengthen Future Business Opportunities
Press release from the issuing company
HUDSON, N.H., Jan. 24 -- Presstek, Inc., a leading manufacturer and marketer of environmentally responsible high tech digital imaging solutions for the graphic arts and laser imaging markets, announced today that its strategic initiatives have resulted in greatly enhanced capacity and capabilities in virtually every part of its business.
Presstek opens fiscal 2005 with an expanded product line, a greatly broadened customer base, new customer segments, and a stronger manufacturing infrastructure. In addition, the company has extended its market coverage, geographic footprint and channels to market, and now has the necessary marketing infrastructure to reach and service its new customers.
Presstek will be hosting a conference call tomorrow, Tuesday, January 25, 2005, at 9:00 a.m. (Eastern) to discuss its recent acquisitions and the status of its strategic initiatives. See below for details.
Presstek's President and CEO Edward J. Marino said, "As a result of the significant strategic, marketing and operational changes implemented in 2004 we are now a new, much stronger and more exciting Presstek. Looking ahead, Presstek's original belief in the inherent value of digital solutions, streamlined workflow and environmental responsibility will continue to form the underpinnings of our strategic direction. As we move into 2005, there will be many more important changes in our organization and the way we do business. We will continue our work to strengthen the leadership of our company - we are particularly pleased with the addition of Susan McLaughlin to our team. We will also strengthen our market channels, specifically our new direct sales, field service operations and eCommerce system. We will continue to use multiple technologies, some developed and manufactured by ourselves and some by others, to compete in our expanded markets. In addition, we will upgrade the human, capital and operating assets recently acquired, as well as properly scale and streamline all the operations effected by the acquisitions."
Commenting on the financial aspects of the acquisitions, Chief Financial Officer Moosa E. Moosa said, "We are currently in the process of finalizing our plans to streamline and integrate the operations at ABDick, as well as the Presstek operations that were impacted by the acquisition. This will be a multi-step process, which is expected to commence immediately and be substantially complete by the end of the second quarter of this year. Our goal is to generate savings from these efforts of approximately $7 million."
Moosa continued, "Let me highlight a few key points. As a result of the acquisitions, we have more than doubled the revenue base of the company. Our core Presstek business continues to generate consistent profitability and good cash flow. With the exception of certain charges relating to operational improvements made in the fourth quarter of 2004, our PLC unit is also expected to be profitable. We also expect that our ABDick unit will begin to generate profit and cash flow once our streamlining and integration efforts are complete. We continue to believe that the ABDick acquisition will be accretive to earnings by the end of 2005."
Marino concluded, "From both a financial and strategic perspective, we believe we now have the critical mass to fuel our company's future. Throughout that process our goal will be to consistently deliver profitability and positive cash flows."
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