But president and chief executive Yeoshua Agassi said the company hoped to achieve reasonable growth during the remainder of 2002, and he also saw some improvements in profitability.

As he issued the companys first-quarter 2002 results, Agassi said that although there had been some recovery in the market during the period, competitive pressures had not diminished.

Revenues for the first quarter fell 5% to 42m ($60.7m), with operating income at 1.5m.

The digital printing products provider managed to dramatically reduce its net loss by 92% to 698,000, as a result of cost-cutting measures put in place at the end of 2001.

Scitex Digital Printings (SDP) revenues fell 4% to 27m on the same period last year, with operating income down 36% to 1.9m.

During the first quarter it sold two VersaMark business colour presses (pictured) to Bristol-based DSTi Output through its reseller agreement with Xerox.

SDP also introduced its VersaMark Vantage, which has an entry-level price of under 690,000 ($1m).

Scitex Vision repeated SDPs trends, with revenues down 7% to 14.4m and operating income down 92% to 100,000.

The company introduced the Pressjet II and installed the first Superjet, a roll-fed digital printer that uses sister firm Aprions technology.

Scitex also closed the agreement dissolving the Karat joint venture between KBA and Scitex, with all responsibility for the Karat business transferred to KBA.

And it reduced its holding in Creo Products to 13% during the fourth quarter of 2001, and accounts for the Creo investment as "available for sale".

Aprion, the developer of drop-on-demand ink-jet systems in which Scitex holds a 43% stake, has made 11 installations to date, comprising beta sites and commercial sales.

Story by Andy Scott