Presstek's Solid Second Quarter Growth

Presstek has reported what it described as solid second quarter growth of seven cents, compared to one cent in the first quarter of the year.

Presstek has reported what it described as solid second quarter growth of seven cents, compared to one cent in the first quarter of the year.

The company recorded a two percentage-point increase in consolidated gross margins and at the end of the second quarter, there was a net-of-cash debt of $22.0m, compared to $33.2 m at the beginning of year.

The company's president and chief executive officer Edward J Marino said: "The company made some tough decisions in the second quarter around certain strategic initiatives that cost us some revenue in the second quarter.

Those decisions have positioned us with a higher quality of revenue and, we believe, better growth prospects for the future.

Even while supporting those strategic initiatives, the company turned in a great quarter.

We made considerable progress in the second quarter of 2005, much of which is visible in our reported quarterly performance and much of which will be felt in subsequent quarters." Marino continued: "For the second quarter, we reported strong earnings results and we are seeing continued growth in our core digital products.

We are ahead of expectation on the integration of our businesses since the acquisition of A B Dick late last year and the rapid start-up of the A B Dick sales force was one of the most encouraging signs in the quarter as it sold through of Presstek technology products that resulted in measurable contributions from A B Dick on Presstek products in less than 90 days of selling.

This is significant considering that those accomplishments occurred simultaneously with the strategic decision to conduct large scale digital training of A B Dick's North American sales and service force." He commented: "During the second quarter of 2005, the company took the strategic initiative to shed unprofitable sales at both A B Dick and Precision, resulting in the company reporting consolidated revenue of $69.7 million in the second quarter, essentially equal to the $70.4 million in the first quarter of 2005." The company reported consolidated net income for the second quarter of 2005 of $2.3m, or $0.07 per basic and diluted share, compared to first quarter 2005 consolidated net income of $0.5m, or $0.01 per basic and diluted share, which included special charges of $1.0m.

Excluding the special charges, first quarter 2005 net income would have been $1.5m, or $0.04 per share diluted.

Back to top