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Technology Stocks : Presstek -- Stock of the Decade??
PRST 0.00010000.0%Nov 7 9:30 AM EST

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To: Nanny who wrote (6073)9/11/1997 4:45:00 PM
From: NEIL MACK   of 11098
 
To All: Print-97 Report.......

A very busy 3 days provided those attending Print-97, overwhelming data regarding the many different presses, platesetters, proofers, etc. showcased by thousands of US and foreign print vendors. The magnitude of the area where the event was held was overwhelming, holding many hundreds of displays at this Chicago event, most Certainly confirming the claim of Print-97 being the biggest print event in the world this year.

I was fortunate enough to speak to many, many....printers, suppliers, and company officials regarding presses, platesetters, proofers etc. and watched many demos of different digital print technology from both competing companies and those presently using Presstek PEARL Technology. In my conversations, I found the reaction from all sides was most credible for Presstek who distinguished themselves with a Very sizable display area. The other vendors from many of the companies reps that I spoke with, definitely do NOT look at Presstek as "a splash in the pan" and expect them to continue to be the trend setter for the print industry. There were many that complimented their R/D team and consider them the definite technology leader in the plate and laser imaging field. I conversed with as many printers as possible (approx. 50) and was startled to learn that many actually owned shares of Presstek stock, even those not using their equipment.

Every booth that displayed Presstek technology had placed many variations of Presstek Pearl information in prominent locations. Three of the vendor areas had large banners with PRESSTEK written across them, actually dwarfing their own sign. Quite a few
Speedmasters and platesetters in different company booths. All I saw had Presstek placards sitting on them, defining the Pearl technology and indicating their equipment could, or is now being used on their equipment.....including CREO and Gerber. Seems to me they were validating their technology by showing the Presstek ability to work on their products.

The existing and brand new plate technology was diverse and I believe will be competitive. The thermal processless plates were not conclusively defined yet to the printers, as to actual imaging performance they could expect from any companies processless plate offerings. (Including Presstek's) Contrary to what has been reported there are no processless plates yet available commercially.....Even the Dupont ZP is in Beta testing.

However, the interest in this processless concept is very real and growing rapidly, according to all the printers I conversed with as they gained more knowledge of it's ability to save them time and money.

The real interest and most exciting news to me, was the direction the thermal imaging manufacturers are leading the print market to. All of their research has indicated a huge market for a completely processless thermal plate. Their view is that the processless plate will break the final barrier that still holds many printers back from changing from film to CTP.

I spoke to what I believe was all the companies that previewed or were showing platesetters at the show. Those that had thermal capabilities are all looking at Presstek plate technology as well as other plate manufacturers too. Idea is the more plates that are able to be imaged on their platesetters.....the higher the market interest will be for their platesetters/imagers.

Those that have already obtained Presstek plate material, have successfully imaged the plates. Those that have just announced thermal platesetters are now scheduling to test Presstek plates in their R/D labs. From those that have tested both the Presstek and
Dupont ZP plates, word is that they achieved favorable imaging results on both plates......However the concerns of silver in the ZP plate IS a real concern to printers I spoke with, although not so much of a concern with Gerber. The Gerber booth had installed a camera inside the Gerber 42 thermal vacuums system to view the burning of the thermal plates in their platesetter. First it was the ZP plate and later the PEARLgold. Well, it was quite clear to me that more residue and fumes were being vacuumed (sucked) away with the ZP plate than Presstek's PEARLgold. I was told that the ZP plate leaves 70 parts of residue from the silver plate to one part from the Presstek plate.
That's 70 times cleaner imaging for Presstek. The reasons stated that made the Presstek plate the overwhelming choice when compared with other ablative offerings were - Completely processless, very little residue, especially at longer runs......(5000+), PEARLgold is a much thinner plate and holds ink better. Could get very little information regarding the Ambition and Polychrome plate.....no one I could find has imaged it yet.

Now the Imation/Presstek proofer....The duel PEARLsetter units used in the Imation half-tone digital proofing system were shown at a number of locations. Actual demonstrations were held at the Imation booth, Sakurai and Presstek. At each demo I watched, printers had filled all seats in the Presstek showings and at Imation, crowds were standing three or four deep....over 100 printers an hour observed this proofing system and I listened to many favorable comments made by those in the 3 shows I watched. This proofing system will allow printers to produce exact proofs in an unlimited number of special colors and substantially reduce material cost to the printer in excess of 30% over existing proofing systems. A quick survey before leaving Sunday showed proofer orders had exceeded 100 by the time I had left. This is indeed a big deal for Presstek, as all the interest is for the duel unit, which contains 2 modified PEARLsetters, one a proofer and the other a platesetter, which provides the press with an exact "signature contract duplicate" of the proof.....no chance for error! (This PEARLsetter system has now been upgraded with new high energy, infra red semi-conductor diode lasers.) Lets see.....approx. 100 + times 2 units = 200 plus orders......so far.

Heidelberg provided a great showing.....there is no doubt that they are the leading press manufacturer in the industry today. They made it quite apparent that the QMDI is their showcase press. The DI presentation was certainly entertaining. Their marketing approach was to market the Quickmaster DI as the press for every print shop as the press will provides it's own new market! They stated to me Sunday that they had taken an additional 27 new orders at the show so far and expected the closing days at the show and beyond, to produce many more sales as a large number of printers kept returning to ask questions regarding financing etc. Heidelberg also was providing a $20,000 Kodak proofer option on the Quickmaster for free, if the press was purchased at the show. QMDI are selling for $488,000. From order to install it now takes 60-90 days. Also, Heidelberg is making 4 Quickmasters a day in Germany and intends to increase this, as
the latest marketing efforts are providing for increased orders. There are many more QMDI's being sold outside the US and Canada. Approx. 200 are now installed just in North America with average monthly N.A. installs at 22.

Omni Adast have a total of 5 DI presses now ready for installation. I was not overly impressed with their presentation of the DI and thought it was not very well thought out. They were meeting with interested customers in enclosed glass areas and had sold at least 2 additional presses at $1,050,000.

Scitex/KBA 74 Karat Direct Imaging press was most interesting and referred a number of times to the Presstek waterless aluminum plates being the only plate that could be imaged on the press at this time. Later I was told they believe other manufacturers may also develop a plate. Also learned that the 74 Karat press does contain some of the Presstek technology on press.

In regards to the Waterless Printing Association Dinner. Sandy Fuhs and John O'Rourke represented Presstek and gave a presentation on Presstek plates......which was received well by the audience. Ron Kendig from Heidelberg also spoke and at the conclusion of the presentation stated to the audience....We would like to inform all of you, we love Presstek plates! Simon Lewis from Scitex spoke regarding the 74 Karat press and at the conclusion of his talk, he also repeated "We too love the Presstek plate!"

I have a bunch more to say, regarding my observations of the other so called "digital presses" that use toner but enough for now. Will post again when I have some more time.

Neil
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