Press Releases

Presstek Announces Fourth Quarter 2009 Financial Results

  • Positive Adjusted EBITDA of $1.1 Million
  • Improved Year-on-Year Operating Income (Loss)
  • Reduction of Debt Net of Cash of $4.2 Million During the Quarter
  • Sequential Quarterly Revenue Growth
  • Continued Positive Adjusted EBITDA Expected for Q1 2010

GREENWICH, CT, Mar 10, 2010 -- Presstek, Inc. (NASDAQ: PRST), a leading supplier of digital offset printing solutions to the printing and communications industries, today reported financial and operating results for the fourth quarter ended January 2, 2010. The Company reported total revenue of $33.5 million in the fourth quarter of 2009, compared with $42.3 million in the fourth quarter of 2008, a decline of $8.8 million, or approximately 21 percent. However, sequential quarterly revenue increased by 1.4 percent compared to $33.0 million of revenue in the third quarter of 2009.

The Company had an operating loss of $0.7 million in the fourth quarter of 2009, an improvement from a loss of $0.9 million in the 2008 fourth quarter and a loss of $6.2 million in the third quarter of 2009. In the quarter, the Company had adjusted EBITDA of $1.1 million compared to the fourth quarter 2008 adjusted EBITDA of $3.0 million, which included an unusually large foreign currency gain in other income. In the third quarter of 2009 the Company had negative adjusted EBITDA of $1.1 million. During the fourth quarter of 2009, the Company incurred a loss from continuing operations of $1.5 million, or $0.04 per share, compared to income from continuing operations of $0.6 million in the fourth quarter of 2008, or $0.02 per share, and a loss from continuing operations of $6.6 million in the third quarter of 2009, or $0.18 per share. (See "Information Regarding Non-GAAP Measures")

"Today we have reported our fourth quarter 2009 results with revenue of $33.5 million, positive adjusted EBITDA of $1.1 million and a reduction in debt net of cash of $4.2 million," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. "These results represent our first sequential quarterly increase in revenue since the second quarter of 2008; a return to positive adjusted EBITDA after two negative quarters; and a strengthening of our overall financial position as we were able to significantly reduce our debt net of cash in the quarter. These positive financial results combined with the recent sale of Lasertel, the closing on our new credit facility, the completion of the SEC review and the successful result achieved with the International Trade Commission in the VIM patent litigation give us a great deal of momentum as we move forward."

Fourth Quarter 2009 Financial Results

Total revenue in the fourth quarter of 2009 was $33.5 million, compared with $42.3 million in the fourth quarter of 2008.

  • Equipment revenue declined 40 percent to $5.8 million in the fourth quarter of 2009, compared with $9.8 million for the same period last year. Throughout 2009, equipment sales have been negatively impacted by the global economic recession that has caused credit markets to tighten and customers to delay major capital investment decisions. However, the fourth quarter equipment revenue represents a sequential quarterly revenue increase of $2.2 million, or 60 percent, and was the highest equipment revenue quarter of the year.
  • Consumables revenue totaled $20.6 million in the fourth quarter of 2009, compared with $24.2 million for the same period last year. The decline in consumables revenue was primarily related to lower industry print volume, as well as lower sales in the Company's "traditional" portfolio of consumables products. Sequential quarterly revenue for consumables decreased $1.6 million, or 7 percent in the fourth quarter primarily due to a decline in "traditional" consumables in the quarter.
  • Service revenue declined approximately 15 percent to $7.1 million in the fourth quarter of 2009 compared to 2008 primarily due to a decrease in the level of traditional equipment service and lower installation volume. Sequential quarterly revenue was essentially flat.
Gross margin for the fourth quarter was 33.9% compared to 37.9% in the fourth quarter of 2008. This reduction was driven by unfavorable shifts in foreign currency exchange rates from the prior year and reduced productivity in equipment and digital plate manufacturing caused by lower production levels. These reductions were partially offset by a favorable mix of products and cost reductions across the manufacturing and service areas as part of the $10 million cost reduction program announced in August 2009.

Fourth quarter operating expenses of $12.0 million declined $4.9 million, or 29 percent, from the fourth quarter of 2008. This decrease is primarily related to significant reductions in legal and professional fees, bad debt charges and headcount related costs resulting primarily from the cost reduction program implemented in August 2009; and the timing of trade show expenses. A restructuring charge of $0.5 million related to the cost reduction program was recorded in the fourth quarter of 2009.

"The $12.0 million operating expense level in the fourth quarter of 2009 represents a 42 percent decrease from 2007 levels when operating expenses averaged in excess of $20 million per quarter," said Presstek Executive Vice President and Chief Financial Officer, Jeff Cook. "This decline has been due, in part, to operating expense reductions achieved in connection with the approximately $40 million of cost reduction and profit improvement actions that have been taken across the business in the past two years."

Interest and other income/expense was an expense of $0.9 million in the fourth quarter of 2009 compared to income of $1.6 million in the fourth quarter of 2008. This change was primarily attributed to a $1.7 million unfavorable swing in foreign currency impacts due to an unusually large foreign currency gain in the fourth quarter of 2008 and an increase in interest expense of $0.3 million as a result of higher interest rates and average debt outstanding during the quarter.

Results from continuing operations exclude the results from the Company's Lasertel subsidiary which were recorded as discontinued operations. Lasertel's results improved during the fourth quarter of 2009 with income from operations, excluding $0.7 million of legal fees related to the sale of Lasertel, of $0.9 million compared with a loss from operations of $1.1 million in the same period last year. On March 5, 2010, the Company completed the sale of Lasertel for approximately $10 million, comprised of $8 million of cash and $2 million of laser diode inventory for Presstek's future product requirements.

The fourth quarter debt net of cash totaled $12.1 million, which is essentially flat from last year's fourth quarter and is down 67 percent from its highest point of $37 million in March of 2007. During the fourth quarter, debt net of cash was reduced by $4.2 million.

"We were pleased that we could complete 2009 with debt net of cash essentially flat in this environment," added Cook. "Even in the face of the contraction of our markets and the expense associated with the refinancing, VIM litigation, SEC review and the Lasertel sale, we were able to end 2009 at essentially the same debt net of cash position as we started the year."

Full Year 2009 Financial Results

Revenue for the full year was $134.5 million, a decrease of $58.8 million or 30 percent from 2008. The decline in revenue was driven primarily by the impact of the deterioration in the global economy and an unfavorable change in foreign currency exchange rates in the year.

Gross margin declined from 35.6% in 2008 to 31.4% in 2009, driven largely by unfavorable changes in foreign currency exchange rates, the negative impact of lower manufacturing productivity due to volume reductions and a third quarter equipment inventory adjustment of $2.7 million. These negative impacts were partially offset by a favorable mix of product sales and the positive impact of cost reduction actions taken in manufacturing and service during the year.

The Company recorded two non-cash, non-routine charges in 2009: a $19.1 million goodwill write-off and a $16.8 million valuation allowance against its U.S. deferred tax assets. These charges are non-cash and did not affect the Company's liquidity or cash flows.

Excluding the goodwill impairment charge, operating expenses declined to $54.5 million in 2009, reflecting a year-over-year improvement of $9.3 million, or approximately 15 percent. Lower expenses resulted primarily from lower headcount related costs due to the Company's cost reduction activities, as well as lower trade show costs and lower legal and other professional services fees.

"We are very pleased with the progress we have made in the past quarter," commented Jacobson. "Since our last earnings call we have accomplished several significant steps toward achieving our long-term strategy.

  • We successfully completed the sale of our Lasertel business, closed on our new revolving credit facility, completed the SEC review and won our patent litigation against VIM Technologies in the International Trade Commission. The effect of these actions is that we will free up valuable time and resources to focus even more on our growth initiatives and we will have the financial flexibility to continue to drive our strategy, expand our business and maximize our shareholder value.
  • In addition to these achievements, our 2009 fourth quarter results include sequential quarterly revenue growth, a return to positive adjusted EBITDA and a strengthening of our overall financial position as we were able to reduce our debt net of cash by $4.2 million.
  • Through our cost reduction and profit improvement programs we have optimized our cost structure, achieving total annualized benefits of approximately $40 million over the past two years and reducing operating expense levels by 42 percent from 2007 levels. I am very pleased that actions such as these have allowed us to achieve a positive adjusted EBITDA of $1.1 million in the fourth quarter of 2009 on $33.5 million of revenue.
  • We also continue to experience positive reactions to our expanded product portfolio, including our thirteen new product announcements in the past two years. We are excited about the organic growth potential that the new portfolio and our expanded international distribution channels provide us.
We believe revenue has stabilized and we are poised for growth. However, as industry-wide revenue levels tend to be lower in the first quarter due to typical industry seasonality, we expect first quarter 2010 revenue to be consistent with the fourth quarter of 2009. The revenue stabilization combined with our optimized cost structure will allow us to continue to achieve positive adjusted EBITDA in the first quarter of 2010, and we expect that future revenue growth will drive improved profitability and cash generation."

Information Regarding Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides non-GAAP financial measures, including operating expenses, excluding the impact of restructuring charges; adjusted EBITDA; cash earnings from continuing operations, excluding non-routine charges; working capital, excluding short-term debt; debt net of cash; operating expenses, excluding the impact of goodwill impairment; income from discontinued operations, excluding legal fees; and other GAAP measures adjusted for certain charges, which the Company believes are useful to help investors better understand its past financial performance and prospects for the future. A full reconciliation of GAAP to non-GAAP measures is provided in the financial tables below. Supplemental financial information has been provided with this release to provide additional details on the Company's performance.

Conference Call and Webcast Information

Management will discuss Presstek's fourth quarter 2009 results in a conference call on Wednesday, March 10, 2010 at 10:30 a.m. Eastern Time. Conference call information is below:

Conference Call Access:
Domestic Dial In: (866) 730-5762
International Dial In: (857) 350-1586
Passcode: 93941228

In addition, for those unable to participate at the time of the call, a rebroadcast will be available following the call from Wednesday, March 10, 2010 at 1:30 PM Eastern Time until Wednesday, March 17, 2010 at 11:59 PM Eastern Time.

Rebroadcast Access:
Domestic Dial In: 888-286-8010
International Dial In: 617-801-6888
Passcode: 38238227

An archived webcast of this conference call will also be available on the "Investor Events Calendar" page of the Company's web site, www.presstek.com.

About Presstek

Presstek, Inc. is a leading supplier of digital offset printing solutions to the printing and communications industries. Presstek's DI(R) 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. The Company's CTP portfolio ranges from two-page to eight-page systems, many of which are fully automated. These systems support Presstek's line of chemistry-free plates as well as Aeon, a no preheat thermal plate which offers run lengths up to one million impressions. Presstek also offers a range of workflow solutions, pressroom supplies, and reliable service. Presstek is well positioned to support print environments of any size on a worldwide basis. Visit www.Presstek.com or call +1.603.595.7000 for more information.

DI is a registered trademark of Presstek, Inc.

"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, including statements regarding expected revenue, gross margins, operating income (loss), EBITDA, asset impairments, expectations concerning the level of costs, the level of customer demand, the results of the Company's cost reduction measures, and the ability of the Company to achieve its stated objectives. 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 severity and length of the current economic downturn, the impact of the economic downturn on the availability of credit for the Company's customers, market acceptance of and demand for the Company's products and resulting revenue, the ability of the Company to successfully expand into new territories, the ability of the Company to meet its stated financial and operational objectives, the Company's dependence on its partners (both manufacturing and distribution), and other risks and uncertainties detailed in the Company's 2008 Annual Report on Form 10-K and the Company's other reports on file with the Securities and Exchange Commission. The words "looking forward," "looking ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "project(s)," "likely," "opportunity," expressions of optimism concerning future events or results, and similar expressions, among others, 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. The Company undertakes no obligation to update any forward-looking statements contained in this news release.

                              PRESSTEK, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per-share data)
                               (Unaudited)
                           Three months ended       Twelve months ended
                         January 2,   January 3,   January 2,  January 3,
                            2010         2009         2010        2009
                        -----------  -----------  -----------  -----------
Revenue
  Equipment             $     5,819  $     9,759  $    19,646  $    52,716
  Consumables                20,571       24,220       85,741      106,027
  Service and parts           7,092        8,339       29,071       34,509
                        -----------  -----------  -----------  -----------
    Total revenue            33,482       42,318      134,458      193,252
                        -----------  -----------  -----------  -----------
Cost of revenue
  Equipment                   5,901        8,611       23,916       45,818
  Consumables                11,162       11,818       46,765       53,270
  Service and parts           5,057        5,862       21,585       25,423
                        -----------  -----------  -----------  -----------
    Total cost of
     revenue                 22,120       26,291       92,266      124,511
                        -----------  -----------  -----------  -----------
Gross profit                 11,362       16,027       42,192       68,741
                        -----------  -----------  -----------  -----------
Operating expenses
  Research and
   development                1,172        1,447        4,975        5,144
  Sales, marketing and
   customer support           5,442        7,526       24,967       29,937
  General and
   administrative             4,673        7,175       21,912       25,496
  Amortization of
   intangible assets            214          261          926        1,084
  Restructuring and
   other charges                522          539        1,684        2,108
  Goodwill impairment             -            -       19,114            -
                        -----------  -----------  -----------  -----------
    Total operating
     expenses                12,023       16,948       73,578       63,769
                        -----------  -----------  -----------  -----------
Income (loss) from
 operations                    (661)        (921)     (31,386)       4,972
Interest and other
 expense, net                  (858)       1,584       (1,389)         938
                        -----------  -----------  -----------  -----------
Income (loss) from
 continuing operations
 before income taxes         (1,519)         663      (32,775)       5,910
Provision (benefit) for
 income taxes                   (32)          49       16,334        2,780
                        -----------  -----------  -----------  -----------
Income (loss) from
 continuing operations       (1,487)         614      (49,109)       3,130
Income (loss) from
 discontinued
 operations, net of
 income taxes                   219       (1,070)        (740)      (2,606)
                        -----------  -----------  -----------  -----------
Net income (loss)       $    (1,268) $      (456) $   (49,849) $       524
                        ===========  ===========  ===========  ===========
Earnings (loss) per
 share - basic
  Income (loss) from
   continuing
   operations           $     (0.04) $      0.02  $     (1.34) $      0.09
  Income (loss) from
   discontinued
   operations                  0.01        (0.03)       (0.02)       (0.08)
                        -----------  -----------  -----------  -----------
                        $     (0.03) $     (0.01) $     (1.36) $      0.01
                        ===========  ===========  ===========  ===========
Earnings (loss) per
 share - diluted
  Income (loss) from
   continuing
   operations           $     (0.04) $      0.02  $     (1.34) $      0.09
  Income (loss) from
   discontinued
   operations                  0.01        (0.03)       (0.02)       (0.08)
                        -----------  -----------  -----------  -----------
                        $     (0.03) $     (0.01) $     (1.36) $      0.01
                        ===========  ===========  ===========  ===========
Weighted average shares
 outstanding
  Weighted average
   shares outstanding -
   basic                     36,827       36,619       36,744       36,596
  Dilutive effect of
   stock options                  -            -            -            9
                        -----------  -----------  -----------  -----------
  Weighed average shares
   outstanding - diluted     36,827       36,619       36,744       36,605
                        -----------  -----------  -----------  -----------
                              PRESSTEK, INC.
                       CONSOLIDATED BALANCE SHEETS
                              (in thousands)
                                (Unaudited)
                                                  January 2,   January 3,
                                                     2010         2009
                                                  -----------  -----------
ASSETS
  Current assets
    Cash and cash equivalents                     $     5,843  $     4,738
    Accounts receivable, net                           22,605       30,759
    Inventories                                        28,905       37,607
    Assets of discontinued operations                  14,097       13,330
    Deferred income taxes                                 243        7,066
    Other current assets                                2,598        4,095
                                                  -----------  -----------
      Total current assets                             74,291       97,595
  Property, plant and equipment, net                   24,307       25,530
  Goodwill                                                  -       19,114
  Intangible assets, net                                4,316        4,174
  Deferred income taxes                                 1,140       10,494
  Other noncurrent assets                                 481          606
                                                  -----------  -----------
      Total assets                                $   104,535  $   157,513
                                                  ===========  ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities
    Current portion of long-term debt and capital
     lease obligation                             $         -  $     4,074
    Line of credit                                     17,910       12,415
    Accounts payable                                    9,887       12,060
    Accrued expenses                                    8,049       13,261
    Deferred revenue                                    6,497        7,300
    Liabilities of discontinued operations              5,203        5,702
                                                  -----------  -----------
      Total current liabilities                        47,546       54,812
  Other long-term liabilities                             141          170
                                                  -----------  -----------
      Total liabilities                                47,687       54,982
                                                  -----------  -----------
  Stockholders' equity
    Preferred stock                                         -            -
    Common stock                                          368          366
    Additional paid-in capital                        120,005      117,985
    Accumulated other comprehensive loss               (3,810)      (5,954)
    Accumulated deficit                               (59,715)      (9,866)
                                                  -----------  -----------
      Total stockholders' equity                       56,848      102,531
                                                  -----------  -----------
      Total liabilities and stockholders' equity  $   104,535  $   157,513
                                                  -----------  -----------
                              PRESSTEK, INC.
                    SUPPLEMENTAL FINANCIAL INFORMATION
                                 $000's
                              (Unaudited)
                          Q4 2008   Q1 2009   Q2 2009   Q3 2009   Q4 2009
                          --------  --------  --------  --------  --------
Key Units
  DI Presses (Excludes
   QMDI)                        25        13        11        12        15
  CTP Platesetters
   (Excludes DPM)               35        24        21        15        10
Revenue - Growth
 Portfolio
  DI Presses (Excludes
   QMDI)                     7,528     3,521     3,732     2,923     5,634
  Presstek Branded DI
   Plates                    4,661     4,025     4,301     4,318     4,022
                          --------  --------  --------  --------  --------
  Total DI Revenue          12,189     7,546     8,033     7,241     9,656
  Presstek CTP
   Platesetters (Excludes
   DPM)                      2,039     1,109     1,505     1,081       578
  Chemistry Free CTP
   Plates                    4,402     3,426     3,678     3,745     3,523
                          --------  --------  --------  --------  --------
  Total CTP Revenue          6,441     4,535     5,183     4,826     4,101
  Service Transfer          (1,176)     (601)     (603)     (596)     (581)
  Service Revenue            3,002     2,723     2,588     2,603     2,553
                          --------  --------  --------  --------  --------
  Total Revenue - Growth
   Portfolio                20,456    14,203    15,201    14,074    15,729
                          ========  ========  ========  ========  ========
Revenue - Traditional
 Portfolio
  QMDI Platform              3,417     2,962     2,987     3,056     3,155
  Polyester CTP Platform     3,601     3,575     3,178     3,228     2,896
  Other DI Plates            1,693     1,295     1,128     1,438     1,521
  Conventional/Other         7,916     7,775     6,608     6,772     5,824
                          --------  --------  --------  --------  --------
  Total Product Revenue -
   Traditional              16,627    15,607    13,901    14,494    13,397
  Service Transfer            (102)     (190)     (190)     (188)     (183)
  Service Revenue -
   Traditional               5,336     4,840     4,598     4,626     4,539
                          --------  --------  --------  --------  --------
  Total Revenue -
   Traditional Portfolio    21,861    20,257    18,309    18,932    17,753
                          ========  ========  ========  ========  ========
Total Revenue               42,318    34,460    33,510    33,006    33,482
                          ========  ========  ========  ========  ========
Product Revenue
 Components %
  Growth                      48.3%     41.2%     45.4%     42.6%     47.0%
  Traditional                 51.7%     58.8%     54.6%     57.4%     53.0%
Geographic Revenues
 (Origination)
  North America             32,374    26,715    26,076    26,810    26,436
  Europe                     9,944     7,745     7,434     6,196     7,046
                          --------  --------  --------  --------  --------
  Consolidated              42,318    34,460    33,510    33,006    33,482
                          ========  ========  ========  ========  ========
Gross Margin
  Presstek
    Equipment                 11.7%      5.9%      0.9%   -124.8%     -1.4%
    Consumables               51.2%     46.7%     43.5%     45.9%     45.7%
    Service                   29.7%     20.8%     25.3%     28.5%     28.7%
                          --------  --------  --------  --------  --------
  Consolidated                37.9%     35.1%     32.9%     23.3%     33.9%
                          ========  ========  ========  ========  ========
Operating Expense
 (Excluding Special
 Charges) (A)             $ 16,409  $ 13,851  $ 14,602  $ 12,826  $ 11,501
Profitability
  Net income (loss)       $   (456) $ (1,191) $(41,449) $ (5,941) $ (1,268)
    Add back: Income
     from discontinued
     operations              1,070        85     1,580      (706)     (219)
                          --------  --------  --------  --------  --------
  Net income (loss) from
   continuing operations       614    (1,106)  (39,869)   (6,647)   (1,487)
    Add back:
      Interest                 121        56       110       491       459
      Other (income)
       expense              (1,705)     (516)      136       254       399
      Tax charge (benefit)      49      (275)   16,905      (264)      (32)
      Impairment / Other
       charges                   -         -    19,114     2,700       124
      Non cash portion of
       equity compensation     482       457       505       389       351
      Restructuring and
       Other charges           539        84        38     1,040       522
                          --------  --------  --------  --------  --------
  Operating income (loss)
   from continuing
   operations                  100    (1,300)   (3,061)   (2,037)      336
    Add back:
      Depreciation and
       amortization          1,172     1,191     1,150     1,231     1,173
      Other income
       (expense)             1,705       516      (136)     (254)     (399)
                          --------  --------  --------  --------  --------
  Adjusted EBITDA (A)     $  2,977  $    407  $ (2,047) $ (1,060) $  1,110
                          ========  ========  ========  ========  ========
Cash Earnings From
 Continuing Operations
  Income (loss) from
   continuing operations       614    (1,106)  (39,869)   (6,647)   (1,487)
    Add back:
      Restructuring and
       Other charges           539        84        38     1,040       522
      Impairment / Other
       charges                   -         -    19,114     2,700       124
      Depreciation and
       amortization          1,172     1,191     1,150     1,231     1,173
      Non cash portion of
       equity compensation     482       457       505       389       351
      Non cash portion of
       taxes                    36      (454)   17,071      (299)     (141)
                          --------  --------  --------  --------  --------
      Cash Earnings From
       Continuing
       Operations (A)        2,843       172    (1,991)   (1,586)      542
                          ========  ========  ========  ========  ========
Working Capital
  Current assets
   (excluding net assets
   of discontinued
   operations)            $ 84,263  $ 83,850  $ 73,994  $ 68,159  $ 60,194
                          --------  --------  --------  --------  --------
  Current liabilities
    Short-term debt         16,489    14,941    17,592    23,446    17,910
    All other current
     liabilities            32,575    33,847    31,345    26,293    24,433
                          --------  --------  --------  --------  --------
      Current liabilities   49,064    48,788    48,937    49,739    42,343
                          --------  --------  --------  --------  --------
      Working capital       35,199    35,062    25,057    18,420    17,851
  Add back short-term
   debt                     16,489    14,941    17,592    23,446    17,910
                          --------  --------  --------  --------  --------
      Working capital,
       excluding short-
       term debt (A)      $ 51,688  $ 50,003  $ 42,649  $ 41,866  $ 35,761
                          ========  ========  ========  ========  ========
Debt net of cash (A)
  Calculation of total
   debt:
    Current portion of
     long-term debt       $  4,074  $  2,454  $  1,644  $    834  $      -
    Line of credit          12,415    12,487    15,948    22,612    17,910
    Long-term debt, net
     of current portion          -         -         -         -         -
                          --------  --------  --------  --------  --------
      Total debt            16,489    14,941    17,592    23,446    17,910
  Cash                       4,738     5,262     4,453     7,220     5,843
                          --------  --------  --------  --------  --------
      Debt net of cash    $ 11,751  $  9,679  $ 13,139  $ 16,226  $ 12,067
                          ========  ========  ========  ========  ========
Days Sales Outstanding          69        74        69        66        59
Days Inventory
 Outstanding                    87       100       105        99        84
Capital Expenditures      $    831  $    180  $    238  $    257  $     51
Employees                      608       612       608       553       527
 

A. Operating expenses, excluding special charges and Adjusted EBITDA [earnings before interest, taxes, depreciation, amortization and restructuring and other non-recurring charges (credits)]; Working capital, excluding short-term debt; Debt net of cash; and Cash earning from continuing operations are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Presstek's management believes that EBITDA provides meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Cash earnings from continuing operations provide meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Working capital, excluding short-term debt, provides meaningful supplemental information regarding Presstek's ability to meet its current liability obligations. Presstek's management believes that Debt net of cash provides meaningful information on Presstek's debt relative to its cash position. Presstek believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of Presstek's ongoing operations and liquidity, and when planning and forecasting future periods. These non-GAAP measures also facilitate management's internal comparisons to Presstek's historical operating results and liquidity. Our presentations of these measures, however, may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included in the tables above.

** Certain amounts may be subject to reclassification to conform to current presentation

Reconciliation of GAAP amounts to Non-GAAP amounts
(Dollar amounts in thousands)
                    Three months ended            Three months ended
                      January 2, 2010               January 3, 2009
                ----------------------------  ----------------------------
                 GAAP     Adjust-   Non-GAAP   GAAP     Adjust-   Non-GAAP
                amounts    ments    amounts   amounts    ments    amounts
                --------  --------  --------  --------  --------  --------
Income (loss)
 from discon-
 tinued opera-
 tions, net of
 income tax     $    219  $    700   $    919  $ (1,070) $     -  $ (1,070)
Adjustment represents legal expenses related to the sale of Lasertel, Inc.
 that are included in Income (loss) from discontinued operations
                    Twelve months ended           Twelve months ended
                      January 2, 2010               January 3, 2009
                ----------------------------  ----------------------------
                 GAAP     Adjust-   Non-GAAP   GAAP     Adjust-   Non-GAAP
                amounts    ments    amounts   amounts    ments    amounts
                --------  --------  --------  --------  --------  --------
Operating
 Expenses       $ 73,578  $(19,114)  $ 54,464  $ 63,769  $     -  $ 63,769
Adjustment represents the goodwill impairment charge recognized in the
 second quarter of 2009
 

Contacts:
Investor Relations
Tim McCauley 
Director of Business Planning
& Investor Relations
(203) 769-8054
tmccauley@presstek.com
Trade Relations
Brian Wolfenden
Director of Marketing Communications
(603) 594-8585, ext. 3435
bwolfenden@presstek.com
 ###

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