The US company, based in Hudson, New Hampshire, reported improved margins and lower operating expenses for the three months ending 31 March 2008, compared with the same period in 2007.

However, quarterly revenues were down $12.7m (£6.5m) to $52.4m, a fall of 19.5% year-on-year. The company blamed disruption to European operations from restructuring, US economic weakness and anticipation of Drupa 2008 for its lacklustre performance.

Despite the lower revenues, net income from continuing operations was $200,000 (1c per share), compared with a net loss of $900,000 (3c per share) in the first quarter of 2007.

The first-quarter results included $600,000 worth of pre-tax restructuring and other charges related to the business improvement plan, while first quarter 2007 included similar charges of $300,000.

"Despite a 19.5% revenue decline versus last year's first quarter, the company reported gross profit only slightly below first quarter 2007 levels, and positive earnings versus a loss in the same period a year ago," Presstek chairman and chief executive Jeff Jacobson said.

"First-quarter results demonstrate that our business improvement plan has been successful in enhancing profitability. We continue to expect that revenue in the second quarter of 2008 will exceed first-quarter levels, and gross profit and operating expenses will continue to reflect the ongoing positive impact of our business improvement plan."

Consolidated gross margin in the first quarter of 2008 was 34.5% versus 28.4% a year ago.

The company's higher margin consumables and service annuity businesses represented a greater proportion of total sales in the quarter, while operating expenses fell from $18.8m in 2007 to $17.3m in first quarter 2008, a 9.8% fall when excluding restructuring and other charges.

It announced it would sell its Lasertel property in Tucson, Arizona, and expects that transaction to complete in the third quarter. Lasertel recorded an operating loss in the first quarter of $1m.

Presstek is due to hold its annual shareholders meeting on 11 June in New York.