Management Turnover as Change Agent

Friday, May 18, 2007

Updated Information to Presstek's Selection of New CEO

Earlier today I was contacted by a representative for Presstek regarding my May 11 piece concerning the firm's selection of its new CEO, Jeff Jacobson. In the piece, I stated, "... the company found itself mired in an SEC investigation of its accounting methods. " Presstek's representative indicated I did not get the facts exactly right.

According to Presstek's representative:

The company did not have any accounting errors in the reporting of our 2006 results. In rebuilding our product line, we incurred certain costs and, in reviewing them with our auditors, were unsure of the best method of accounting to use in reporting them.

We decided to ask the SEC to review the situation and they agreed with our actions. This review process, however, caused delays in our filing the financial forms required of all public companies and also triggered a routine notification from the NASDAQ stock exchange warning us that failure to file our reports would result in Presstek being delisted from the NASDAQ stock exchange. As soon as the SEC provided its opinion, we promptly completed our filings, eliminating any risk of NASDAQ delisting. Due to these accounting issues, our auditors advised us that we needed to increase our accounting capabilities for the future, a process that our new Chief Financial Officer has well underway."

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