Presstek Inc. (PRST) Posts Better-than-Expected Q1 Earnings

QualityStocks would like to highlight Presstek, Inc. (NASDAQ: PRST), a leading supplier of digital offset printing solutions to the printing and communications industries. Presstek's DI® digital offset solutions bridge the gap between toner and conventional offset printing, enabling printers to cost effectively meet increasing customer demand for high quality, short run color printing with a fast turnaround time while providing improved profit margins.

In the company’s news yesterday,

Presstek posted its first-quarter results for the three months ended April 2, 2011.

Revenue was $31.9 million, down 7.6 percent compared to the first quarter of 2010. Adjusted EBITDA of $0.7 million reflects the company’s sixth consecutive quarter of positive EBITDA.

The company had an operating loss of $1.2 million in the first quarter of 2011 compared to an
operating loss of $0.3 million in the 2010 first quarter. Net loss from continuing operations was $1.5 million, or $(0.04) per share, compared to a net loss from continuing operations of $0.5 million, or $(0.02) per share, in the first quarter of 2010.

Presstek had previously forecast its first-quarter revenue and adjusted EBITDA to be relatively flat compared to its fourth-quarter results, though it exceeded expectations with a 2.6 percent sequential quarterly increase in revenues and a more than 14 percent increase in EBITDA.

“The sale of consumables accelerated during the latter part of the quarter, providing us with our
highest quarterly total revenue performance in four quarters. Additionally, we continued to generate positive quarterly adjusted EBITDA,” Presstek chairman, president and CEO Jeff Jacobson stated in the press release.

Gross margin percent for the first quarter decreased to 31.2 percent compared to gross margin of 33 percent reported in the first quarter of 2010.

The company reported an increase in debt net of cash during the first quarter of 2011, ending at $8.8 million compared to $6.1 million at the end of fiscal 2010.

Presstek shrugged off broader challenges and reported better-than-expected results, a trend the company says it expects to maintain through the current quarter.

“Despite the continued impact of a soft economy and bad weather across much of the U.S. during the first quarter, we are pleased that our results exceeded our expectations,” said Presstek executive vice president and CFO Jeff Cook. “In addition, we have seen an increased level of equipment sales activity during the early part of the second quarter of 2011, and expect to report both sequential and year-over-year equipment revenue growth for the quarter.”

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Forward-Looking Statement:

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