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Jun 11, 2002 12:00 AM
Presstek, Inc.'s (Hudson, NH) announced that its new senior management team has completed its business review and has begun the implementation of its strategic repositioning plans.
Presstek's Lasertel subsidiary is largely unaffected by these changes and will continue to supply Presstek with its laser diodes for its imaging systems.
"The refocusing of our business on the marketing and commercialization of our DI-enabling technology will allow us to take advantage of the growth opportunities available in the marketplace today and position us well for the future," said Edward J. Marino, president and chief executive officer of Presstek.
The first part of the market-focused repositioning includes the following:
New senior management organization
Re-alignment to market-focused DI and CTP business units with full P&L responsibility and shared central functions
Re-alignment of personnel, including the termination of approximately 20% of Presstek employees
Consolidation and integration of the company's Hampshire Drive research & development facility into the company's main Executive Drive operations in Hudson, NH.
As a result of the above, Presstek expects to incur one-time charges in the second quarter of this year of approximately $4.6 million related to these activities. The cash portion of these charges is expected to approximate $1.7 million. The associated annualize cost savings are expected to be approximately $5.6 million.
The second part of the plan is a streamlining and prioritization of company resources to focus on the most promising and profitable opportunities. According to the company, this will result in "the discontinuance of certain programs." Reserves for asset write-offs and accruals amounting to approximately $5.0 million will be booked in the current quarter.
The majority of the repositioning is expected to be fully implemented by June 30, 2002.