Presstek Repositions Lasertel Subsidiary

HUDSON, NH, June 13 -- Presstek Inc. plans to streamline its Lasertel operations in order to focus in the short term on laser diodes supplied to Presstek as well as on opportunities that match the current level of resources employed. The company also indicated that the general slowdown in the telecommunications market appears to have reached those segments of the market Lasertel was previously targeting. As a result of these factors, the company is planning to implement cost reductions at Lasertel that will principally affect nonproduction areas of operation.
"During the quarter Lasertel has been working diligently to refine its processes for Presstek and other markets," said Robert Hallman, president and CEO of Presstek. "In the last few days we have learned that the slowdown in the telecommunications market is broader than we had expected, and this has delayed anticipated purchase orders for the metropolitan applications targeted by Lasertel. As a result of these delays, together with unexpectedly large expenses related to process improvements, we now expect Lasertel to record losses of approximately $3 million for the second quarter of this year."