Scott, here it is:
BTW, I recall James indicating $.13/share in 1998 based on the 2 qtr conference call. Well here we are after 3 at $.11/share. I think you should give James some credit for his insight.
SOURCE: Presstek, Inc.
Presstek Reports Third Quarter Results
HUDSON, N.H., Oct. 21 /PRNewswire/ -- Presstek, Inc. (Nasdaq: PRST - news), a leading provider of digital imaging technology to the printing and publishing industry, today announced that revenues for the third quarter ended October 3, 1998 equaled $20.4 million versus $24.3 million for the third quarter of 1997. Net income for the most recent quarter equaled $126,000, or break even on a per share basis, compared with $4.1 million or $0.12 per share, for the same period last year.
Revenues for the nine months ended October 3, 1998 were $67.8 million compared with $65.2 million for the corresponding period in 1997. Net income for the 1998 nine month period was $3.1 million, or $.09 per share, versus $10.2 million, or $.31 per share for the same period in 1997.
The company said the decline in sales resulted in part from the previously announced lower production of the Quickmaster DI imaging kits for Heidelberg Druckmaschinen AG, a major Presstek customer. Financial performance was also affected by a general industry slowdown as buyers delayed purchasing decisions in anticipation of new product introductions at key trade shows this fall.
President and Chief Operating Officer Robert E. Verrando said Presstek shipments of Quickmaster kits to Heidelberg last year had outpaced end-user sales. ''On a normalized basis our revenues would have grown at an annualized rate of more than 35 percent for the past three years, but because of the early build-up necessary to fulfill Heidelberg's initial large backlog, we are now seeing an impact on this year's financial results,'' Verrando said. ''Heidelberg also continues to show a strong commitment to Presstek by featuring its second-generation technology in products introduced at the recent IPEX '98 trade show.''
Sales of consumable plates for the third quarter, seasonally the company's slowest, continued to expand showing an increase of 48 percent to $6.5 million, or approximately 33 percent of total revenues, versus $4.6 million, or 20 percent of revenues, for the same period last year. This increase was despite a manufacturing problem experienced during the quarter, which has now been resolved.
Noted Chief Financial Officer Neil Rossen, ''The company will continue its transition period next year. The costs associated with the expansion of Presstek's R&D, marketing and infrastructure related initiatives will continue to impact the bottom line in the near term, but it is important that we continue to invest in our future growth. Our balance sheet, with $27 million in cash and marketable securities, is strong and our focus for 1999 will be on broadening our revenue base and positioning the company and its product offerings for the year 2000.''
Recently appointed Chief Executive Officer Robert Hallman said, ''Presstek occupies a unique position in the industry. Our thermal imaging plate technology is at the cutting edge of the delayed, but now expanding computer to plate market. More importantly, we are the leaders in the emerging direct- to-press market, the logical extension of computer-to-plate evolution. This will become even more apparent at Drupa 2000 as we fulfill our vision of the printing press as a computer peripheral.''
Hallman also said that the company would be investing approximately $7.5 million in additional commercial plate manufacturing equipment that will reduce the cost of plate manufacture and enhance the company's development capability.
Founded in 1987, Presstek, Inc. is a leading developer and international marketer of non-photographic, non-toxic digital imaging and printing plate technologies for the printing and graphic arts industries. Presstek's products and applications incorporate PEARL(R) technologies and utilize PEARL consumables for computer-to-plate and direct-to-press applications. The company's patented PEARL thermal laser diode family of products enables its customers to produce high quality, full-color lithographic printed materials more quickly and cost efficiently.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this News Release constitute ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence, increased competition, litigation and other risks detailed in the Company's other filings with the Securities and Exchange Commission. The words ''believe'', ''demonstrate'', ''intend'', ''expect'', ''estimate'', ''anticipate'', ''likely'', and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Oct. 3, 1998 Sept. 27, 1997 Oct. 3, 1998 Sept. 27, 1997
Net revenues $ 20,417 $ 24,294 $ 67,787 $ 65,198
Cost of products sold 12,521 12,191 40,353 32,740
Engineering and
product development 3,964 2,896 11,384 7,706
Sales, marketing and
general administrative 3,928 2,924 11,646 7,742
Income from operations 4 6,283 4,404 17,010
Other income (expense) 222 126 790 (183)
Income before provision
from income taxes 226 6,409 5,194 16,827
Provision for
income taxes 100 2,345 2,090 6,650
Net income $126 $4,064 $3,104 $ 10,177
Basic earnings
per share $0.00 $0.12 $0.10 $0.32
Diluted earnings
per share $0.00 $0.12 $0.09 $0.31
Common shares
outstanding 32,112 32,662 31,932 31,752
Common shares
assuming dilution 32,393 33,472 32,699 33,012
Oct. 3, Sept. 27,
1998 1997
Cash, equivalents
and marketable $ 27,312 $5,768
Current assets 60,571 45,075
Total assets 116,102 94,748
Current liabilities 15,649 16,476
Total liabilities and
shareholder equity $116,102 $ 94,748
SOURCE: Presstek, Inc.
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