In an interim management statement (IMS) published this morning, the inkjet printhead manufacturer said that – based on unseasonably stong trading in the first quarter and the strength of its forecast for the rest of 2013 – it was increasing its expectations for the year. Sales in the first three months of 2013 were said to have “grown significantly” year-on-year as well as versus the last quarter of 2012. This was said to be in contrast with historic seasonal sales patterns, as the first quarter is usually adversely affected by the Chinese New Year. The Cambridge-based manufacturer said that product gross margins had improved as a result of the higher sales level and were ahead of those achieved in the second half of 2012. Revenue growth came primarily from the industrial and packaging markets, supported by “modest growth” in the graphic arts market. Operating margins also benefited from the growth in sales although the board warned that these were expected to soften later in the year due to the impact of planned manufacturing capacity investment and increased R&D spend. Net cash at 31 March 2013 was £41.7m, versus £28.9m at 31 December 2012, although this was partly due to the phasing of this year’s capex towards the second half of the year and a reduction in net working capital. The IMS concluded that the board was “confident that strong growth in revenue and profit will be achieved in 2013 versus 2012” – when the company achieved record results – adding that it was increasing its expectations for the year....

“They are cutting into the bone and then trying to grow the business again and reestablish it,” one source said in reference to the restructuring. Presstek Press Business General Manager Geoff Loftus declined to give details of the restructuring but confirmed that new CEO David Savage had spent the past few days travelling between the direct imaging press manufacturer’s sites to explain the impact to staff. “He was with our South Hadley ( MA), Greenwich (CT) and Hudson, New Hampshire employees already this week and is now meeting face to face with our team in the UK,” Loftus added. Presstek officials have publicly been touting the benefits of the AIP acquisition since it was announced last August, stressing that it put the one-time publicly traded company on much firmer financial footing. AIP, which also owns mid-web flexo press maker Mark Andy, reportedly paid about $26m for Presstek, which lost $73m between 2009 and 2011 alone. Executives have also recently been suggesting that the Presstek 75DI – a 31″ direct imaging press available in four to 10-color configuration that can print up to 6,000sph and includes support for 300lpi and FM screening – has been making solid inroads in the packaging/folding carton market for shorter run jobs....