Digital printer(from:http://www.office-products-suppliers.com/d-p9471602-digital_printer/) equipment maker Presstek Inc. turned a profit in the second quarter, despite disappointing U.S. sales.
The Hudson company made big gains last quarter with profits of $500,000, or 2 cents per share, versus a loss of $4.9 million, or 13 cents per share, in the same April through July period last year.
Presstek lost more than $12 million in 2007. Amid increasing financial woes, a new executive team was put in place early in the year and instituted a business improvement plan to cut expenses.
In a statement released this week, the company credited that plan with strengthening the balance sheet(from: http://www.office-products-suppliers.com/buy-sheet/).
"The company's lean cost structure drove a net profit," said Jeff Cook, executive vice president and chief financial officer.
Revenue in the second quarter was $54.3 million, a 21 percent or $14.5 million decline from the same period in 2007. Although European revenue rebounded from the first quarter, U.S. sales took a dive.
The drop in sales were linked to the overall U.S. economic slowdown.
However, the company was able to turn a profit because operating expenses declined $6.9 million, or 30 percent, from the same period in 2007.
"While the economy is beyond our control, we made excellent progress in areas within our control," Jeff Jacobson, president and chief executive officer, said in a statement.
"Results like this are only achieved with focus, extreme dedication and relentless hard work."
Third-quarter financial results will include money from the previously announced sale(from: http://www.office-products-suppliers.com/buy-sale/) of the company's Lasertel property in Tucson, Ariz., for $8.75 million.
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