Presstek has announced its third quarter 2011 financial results which saw its total revenue decline 14.4 percent to US$26.9 million, compared to 2010. This resulted in an an operating loss of US$4.7 million.
"As expected, our third quarter revenue was negatively impacted by global economic conditions. Smaller printers were hit especially hard by these issues, and they are a large portion of our customer base," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. "We continue to be encouraged by a strong pipeline of new opportunities, but customers of all sizes are delaying important investment decisions and conserving cash. During the quarter we recorded our third 75DI sale, the first one in our Asia Pacific Region, and expect to complete installations on two additional units in the fourth quarter. In addition, I am excited to see our open platform CTP plate sales gain traction, as evidenced by a sales increase of 51 percent in the quarter versus the prior year quarter."
Despite these numbers, the company says it plans to return to positive adjusted EBITDA in the first quarter of 2012. A profit improvement initiative, launched in the third quarter of 2011, is expected to provide US$11.2 million in savings next year.
"We started taking major cost reduction actions during the third quarter of this year to right-size our business to current economic conditions, and this work has continued into the fourth quarter," said Jacobson. The quarter did see the sale of the company's third 75DI press, its first in the Asia Pacific region and Jacobson says he expects to complete installations on two additional units in the fourth quarter.