Despite disappointing U.S. sales, digital printing equipment maker Presstek Inc. turned a profit. The Hudson company made big gains last quarter with profits of $500,000 versus a loss of $4.9 million in the same April through July period last year. Presstek lost more than $12 million in 2007 and amid increasing financial difficulties, a new executive team was put in place early in the year. They instituted a business improvement plan to cut expenses.

Presstek has credited this plan with strengthening their balance sheet. Their lean cost structure drove a net profit. Revenue in the second quarter was $54.3 million, a 21% or $14.5 million decline from the same period in 2007. European revenue rebounded from the first quarter while U.S. sales declined significantly. The drop in sales were as a result of the overall U.S. economic slowdown.

Presstek was able to turn a profit because operating expenses declined $6.9 million, or 30%, from the same period in 2007. The company CEO claims that they made excellent progress in areas within their control and achieved results through focus, dedication and hard work. Third-quarter financial results will include money from the previously announced sale of the company’s Lasertel property in Tucson, Arizona for $8.75 million.

Tags: digital printing, presstek

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