Backlog - some or none or ??
Pierre
Nice posting and followup re changes.
I agree that one of the missing elements that would be useful to evaluation of operations, as you've pointed out in prior posts, I believe, is continuing information on unit sales, unit deliveries and unit backlog.
However I would interpret the backlog language - "Substantially all of the backlog of products under contract is expected be shipped by the Company in 1996" as meaning exactly that - the backlog that existed at the end of 1995 will be shipped/transformed into sales during the 1996 year. Pretty standard requirement - if you state backlog, explain when it will be turned into sales, unless its patently obvious. And since very little of Presstek's operation is patently obvious, that's what they should do.
Unfortunately there is nothing to indicate what the effect new sales and shipments are having on backlog, except that we can infer that 75 QMDI sets were shipped by May or so, based on the June 6 statement that "the company has shipped in excess of 190 Quickmaster DI imaging kits since June 1995" and the year-end report that "by the end of 1995 the Company had shipped 211 of its PEARL Imaging Kits, 115 of which were for the new Heidelberg Quickmaster DI introduced in May 1995." I am in agreement with you that appropriate disclosure would provide quarterly information.
Interestingly, the shares covered by the S-3 are now priced at $63 (down from $109.75 at the April 5 date of original filing), so the selling shareholders have lost a lot ($13.2 million) while waiting for the S-3 to be approved and become effective.
(Not to mention another $22.6 million if they'd been able to sell at ave. of $190 at the mid-May peak. So sad...think of all the tax that would have gone to reduce the Federal deficit!!) <g>
You did miss the additional fact/change of 'the gang that couldn't count straight' in that the S-3 amends the number of shares being sold to 282,346, as opposed to 287,346 in the original filing - which was an addition error, as there is no change in the number of shares being sold by individual shareholders.
Finally, the continuing amendments to the S-3 and 10-K would seem to indicate that the SEC is scrutinizing Presstek filings closely, and requiring more, better and fuller disclosure, which works to the benefit of all buyers, sellers and holders - long, short or curious.
Bill Fuller |
