Presstek revenue continues to fall

Presstek Inc. started out the year with a $1.5 million loss, or 4 cents a share, thanks to another revenue drop of 7.6 percent, leaving the company with $3.2 million in cash, according to filings with the Securities and Exchange Commission.The filings and earnings release came just a few weeks after proxy filings, when the company disclosed that top executives and board members received compensated totaling $3.9 million in 2010, with $1.74 million going to Jeffrey Jacobson, chairman, president and CEO.The company said that the results “exceeded our expectations” because if the company ignored some generally accepted accounting practices – included counting equity compensation to its executives – it would have produced a $700,000 profit. But when the accounting rules were followed, the company had a net loss of $1.54 million, compared to a net loss of $622,000 in the first quarter of the previous year. But that is an improvement compared to last year’s fourth quarter, when the company posted a net loss of $6.7 million.The company — a maker of digital printing presses — has been fighting a losing battle against the economic downturn and the decline of print publications, keeping its losses at a minimum despite shrinking revenue. Its workforce, for instance, is down to 485, 30 fewer than at the same time the previous year. Last quarter’s revenue of $31.9 million was about $2.6 million less than the same quarter last year, and 2 percent less than the revenue earned during that horrendous fourth quarter of 2010. Year-over-year revenue decrease was across the board, in equipment, consumables and services.That leaves the company with $3.17 million in cash and equivalents, down by about $1 million from the beginning of the year.The good news is that Presstek has more than $2 million in receivables, and stockholder’s equity remains the same, at more than $49 million.The company didn’t cut expenses when it came to executive compensation in 2010. The four top executives received total compensation packages of $3.4 million in 2010, as opposed to just under $2 million in 2009. In addition to Jacobson, CFO Jeffrey Cook received a package of $727,600, compared to $322,776 in 2009; chief marketing officer Kathleen McHugh’s package was worth $449,000, compared to $248,500 in 2009, and general counsel James Van Horn was awarded $514,261, compared to $281,043. The six board members received a total of $528,000 in fees and options, with lead director Edward Barr gleaning the most — $120,000. Board member Daniel Ebenstein received $100,000 and his law firm billed Presstek $118,000 in legal fees for representation on various intellectual property matters. — BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW