Edward Marino, Presstek president and CEO, says, “We are very pleased with our third quarter of 2004 performance. We reported strong results in our core businesses, and were successful in making our acquisition of Precision Lithograining Corp. accretive within the first sixty days under Presstek’s ownership. These third quarter 2004 achievements resulted in Presstek recording its highest level of quarterly revenues ever.”
The company reported consolidated revenue for the third quarter of US$29.8m, up 51 per cent compared to US$19.8m in the same period a year ago, and up 31 per cent from US$22.7m in the second quarter of 2004. Consolidated revenue includes US$3.1m in revenue from Presstek’s newly acquired subsidiary, Precision Lithograining Company (PLC).
Consolidated consumable revenue for the third quarter of 2004 was US$17.1m, which included US$3.1m from PLC, up 41 per cent from US$12.2m in the third quarter of 2003, and up 21 per cent from its US$14.1m record in the prior quarter.
Consolidated equipment revenue including related royalties was US$12.2m, up 82 per cent from US$6.7m in the same period a year ago, and up 49 per cent from US$8.2m in the previous quarter.
Marino says, “The significant rise in equipment sales bodes very well for future consumable sales because as the installed base of consumable burning engines increases so does the use of Presstek’s consumable products.”
Moosa Moosa, Presstek CFO, says, “Revenue from Presstek’s New Technology Business, which consists of all Presstek business other than the Quickmaster DI platform products and PLC conventional plates, increased significantly in the third quarter of 2004, up 26 per cent from the second quarter of 2004, and up 56 per cent from the corresponding quarter in the prior year. New Technology equipment revenue for the third quarter of 2004 was up 70 per cent compared to the same period last year, and up 50 per cent from the second quarter of 2004. New Technology consumable revenue was up 37 per cent compared to the same period last year, and down slightly compared to the second quarter of 2004.”
The company reported consolidated net income of US$2.7m, or US$0.08 per basic and diluted share, in the third quarter of 2004, compared to net income of US$1.4m, or US$0.04 per basic and diluted share, in the second quarter of 2004 and US$2.4m, or US$0.07 per basic and diluted share, for the corresponding period in the prior year. Third quarter 2003 net income included US$1.4m in income from discontinued operations. Income from continuing operations in the third quarter of 2003 was US$1.0m, or US$0.03 per basic and diluted share.
Lasertel recorded US$775,000 from sales to external commercial customers in the third quarter of 2004, up 89 per cent from US$410,000 in the same period a year ago, and up 35 per cent from US$573,000 in the prior quarter. Lasertel reported an operating loss of US$720,000 in the third quarter of 2004, compared to US$832,000 in the same period a year ago, and US$945,000 in the prior quarter.
Presstek’s newest subsidiary, Precision Lithograining Corp., recorded US$3.1m from sales to external customers and operating income of US$230,000 in the third quarter of 2004.
Marino says, “We are very pleased with the progress at PLC since closing the acquisition at the end of July. We would like to recognize the hard work of the members of Presstek and PLC’s management and staff who helped to make PLC accretive to earnings within the first sixty days of ownership.”
Consolidated gross margins for the third quarter of 2004 were 34 per cent, compared to 39 per cent for the third quarter of 2003 and 40 per cent in the prior quarter. The decrease in gross margin percentage from the prior quarter is primarily due to product mix and the inclusion of the lower margin business from PLC.
Marino says, “We have committed ourselves to delivering a strong second half of 2004 and are pleased with the third quarter’s contribution to that commitment. During the quarter we also made solid progress in the initial stages of our growth phase. Successful showings at both the drupa trade show in May and at the Graph Expo show in early October have resulted in increased interest and demand for our equipment, particularly the new DI press models, which we anticipate will result in improving consumable sales going forward. In addition, PLC generated over US$3m in revenue within the first sixty days under Presstek’s ownership. We also saw continued strong growth in external sales at our Lasertel operation under its new president Mark McElhinney, and are confident in his abilities to grow Lasertel’s customer base and product line. While there is a lot to do ahead of us, we believe we have made excellent progress in building a platform for sustained growth at Presstek.”
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