MINNEAPOLIS – Most credit union members only see the printed checks they receive through their credit union, and some may even recognize the names of the largest check printers for credit unions – companies like Liberty, Harland and Clarke American. But few of them – and perhaps even just as few credit union staff – are familiar with the technology companies used by check printers to print the checks.
At a time in the U.S. economy when many businesses are reporting losses and laying employees off, one such technology company-Check Technology-was celebrating not just the start of the new year, but also the outcome of the company's remarkable year of performance in 2001.
This is a rundown of the fourth quarter 2001 showing for Check Technology, a global leader in the design and manufacture of advanced print-production systems for financial, security, forms and commercial printers.
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In November, the company reported sales of $10.2 million for the fourth quarter ended Sept. 30, 2001, a 21% increase from $8.5 million for the same period in 2000. Fourth quarter operating income for the company was $1.5 million, up from $21,000 for the same period the previous year.
Fourth-quarter net income was $1.0 million, or $0.16 per share, compared with a net loss of $95,000, or $0.02 per share a year earlier.
In addition, revenue from maintenance, spare parts and supplies increased 26%. Check Technology attributed the increase to the growing number of installation of the company's flagship product – the advanced ImaggiaT document digital printing system.
In other fourth quarter developments, Check Technology introduced the ImaggiaT II.
Capping these achievements, Check Technology finished 2001 with the signing of a definitive purchase agreement with Xerox Corp. to acquire the North American assets of Delphax Systems, a Xerox company, in a cash transaction.
Located in Toronto, Ontario, Delphax employs more than 200 people in the development, manufacture and distribution of print engines, print management software and a wide range of digital printing systems that use the company's proprietary electron-beam imaging technology.
Delphax supplies the sophisticated high-speed Gemini print engine that drives Check Technology's Imaggia system.
Jay Herman, Check Technology's chairman and CEO described the Delphax deal as "a most significant event in our company's history."
Check Technology's CFO Rob Barniskis, said, "2001 has been quite a ride for the company. There's been a lot of discussion about the demise of the check, but checks have not died off."
"We're the guys behind the check printing scene," Barniskis said
Founded in 1981 by a group of engineers and venture capitalists, Check Technology currently has more than 450 of its advanced print-production systems installed and is doing business in 50 countries. It includes among its clients check printing company Harland, which it signed a large equipment contract with in January 2000.
"Initially our plan was to create a digital printer. Then we took that idea a step further and decided to create a machine specifically geared to the check product," Barniskis explained. In 1982, CTC developed the ChecktronicT prototype to serve the check printing market. It sold its first Checktronic Model 200 print system in 1984, and two years later it sold its 100th Checktronic system.
The company opened its first overseas subsidiaries in France and Australia in 1987.
From 1988 to 1992, Check Technology continued to introduce upgraded models of its Checktronic system. Then in 1993, it began developing the company's Imaggia system.
In 1995, it debuted the Imaggia MG20T digital print system prototype, the fastest digital cut-sheet printer at 228 pages per minute throughput and 18-3/4 inch by 22-inch media size. It made its first major multi-system order of Imaggia MG20 systems in the U.S. in 2000.
One year later, it already debuted a prototype for the Imaggia II.
"Traditionally, check printers have used offset printing. They like dealing with stacks of paper, not rolls of paper," said Barniskis. "With Imaggia, they can print with large sheets of paper which means more volume and provide dynamic collation. So instead of having a pressman working on an offset printer, Imaggia is labor and production saving.
"Digital printing brings the added element of variable check printing," Barniskis added.
Barniskis is not daunted by the on-going talk about the demise of check printing. One of the advantages of digital check printing is that the first check costs the same as the last. So as check orders get smaller, digital printing will provide a wider cost factor. As the check printing market goes through changes, the opportunity for digital printing is tremendous." -
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