Presstek Inc. is cutting 60 jobs, about 10 percent of its work force, after recording a $41 million loss in its fiscal second quarter ending July 4.
Presstek sells offset printing presses and accessories, with its executive offices in Greenwich and its main operations facility in Hudson, N.H. Presstek sales were $36 million in the second quarter, down 35 percent from a year ago.
The reported loss included a $19 million charge to account for a write-off of goodwill reflecting the full impairment of amounts relating to the 2004 acquisitions of A.B. Dick and Precision Lithograining.
Presstek said it is no longer in compliance with financial covenants under a credit agreement, and that it is negotiating a new agreement for the current one which expires in November.
In addition to the job cuts, Presstek is eliminating matching contributions to its 401(k) retirement plan and is instituting unspecified temporary furloughs.
“These actions, while difficult, are necessary to help us weather the current economic conditions and properly position ourselves to capture market share and grow revenues once the industry and economy start to recover,” said CEO Jeff Jacobson, in a written statement.
Last month, the company disclosed it received a “Wells notice” from the Securities and Exchange Commission indicating the SEC might seek an injunction or civil penalties in connection with an investigation of Presstek”™s reported results for the third quarter of 2006. The company has said it is cooperating with the investigation and involved actions before the company”™s current management team was put in place.
