Presstek Reports Improved Third Quarter Results
Consumables revenue totaled $20.6 million in the third quarter of 2010, compared with $22.2 million for the same period last year primarily due to reductions in "traditional" product categories of $1.4 million and in legacy Anthem CTP plates of $0.3 million. This more than offset increases in the open format CTP plates of Aeon and Aurora Pro, which increased 48 percent from the prior year quarter. Year-to-date the company has closed on approximately 60 new CTP plate accounts that should equate to an annual run-rate of approximately $2.8 million of new thermal CTP plate sales.
Service revenue declined approximately 16 percent to $6.1 million in the third quarter of 2010 compared to the year ago quarter. This drop is primarily due to the continued erosion of the analog service base and a general trend by customers to delay service calls and maintenance to save money in a difficult economy.
Gross margin percent for the third quarter of 2010 was 32.8 percent compared to 23.3 percent in the third quarter of 2009. The improvement versus the third quarter of 2009 was due primarily to the impact of the $2.7 million inventory-related charge taken in the third quarter of 2009, favorable manufacturing productivity and a favorable mix of DI equipment sales, partially offset by lower service margins and a lower mix of higher margin consumables.
Third quarter 2010 operating expenses of $11.7 million represented a reduction of $2.2 million, or 16 percent, from the third quarter of 2009. Excluding the impact of restructuring charges in each period, operating expenses declined by $1.6 million. The decline in operating expenses was primarily related to reduced payroll costs and professional service fees; partially offset by increased non-cash stock compensation expenses.
Debt net of cash totaled $6.9 million at the end of the third quarter, a reduction of $9.4 million versus the third quarter of 2009 and a reduction of $1.9 million from the end of the 2010 second quarter. The primary cause of the decrease from the prior year level was the proceeds received from the sale of the company's Lasertel subsidiary in the first quarter of 2010.