Company Address:
Baldwin Technology Company, Inc.
2 Trap Falls Rd., Suite 402

Shelton, CT
06484
USA
 Phone:
(203) 402-1000
 Website:
www.baldwintech.com
 Ticker:
BLD
 Exchange:
NYSE Amex
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2 Trap Falls Rd., Suite 402 • Shelton • CT • 06484 • USA • www.baldwintech.com
Investor Contact: Frank N. Hawkins, Jr. or Julie Marshall · Hawk Associates Inc. · (305) 451-1888 · www.hawkassociates.com
Baldwin Reports 2010 FYQ1 Net Sales $36.2 Million. Net Income $3.9 Million Includes Gain on Settlement of Patent Infringement Action. Company Secures $1.2 M for Newspaper Press Equipment in Japan.
ALERT: Financial results for the second fiscal quarter ended December 31, 2009 will be released February 10, 2010 before the market opens.

The company will host a conference call on the same day at 11:00 AM Eastern Time to review the financial results and respond to questions and comments.

To participate, call (800) 619-4043 any time after 10:50 AM Eastern Time. The number for local and international calls is (415) 228-5043. The passcode is “Baldwin Q2.”

A webcast will be available at www.baldwintech.com.

Baldwin Technology Company is a leading supplier of process automation technology for the printing and publishing industry worldwide. The company provides an extensive range of market-leading technologies, products, systems and related consumables that enhance the quality of printed products, improve the economics and reduce the environmental impact of the printing process.

Baldwin maintains product development, manufacturing and sales and service facilities in 10 countries. During fiscal year 2008, 53% of Baldwin's revenues were generated in Europe, while 26% of its revenues were from Asia and the remaining 21% from the Americas.

The company’s products and systems make it easier to clean key areas of the press, manage temperature, chemistry, ink and water balances, protect against paper breaks and speed the curing and drying of printed materials. Products are priced from less than $100 to approximately $75,000.

The company sells and markets its products through dealers, distributors and direct sales representatives around the world. Providing a balanced revenue base, approximately 48% of Baldwin’s net sales are to OEM press manufacturers and 52% are sales made directly to printers and publishers. Manufacturers incorporate the company’s products into their own printing systems prior to sale. Printers and publishers use Baldwin products to improve the performance and economics of their printing operations. The company’s products help all parties meet the increasingly demanding requirements of environmental regulations and safety issues.

Baldwin has more than 100 patents relating to its advanced pressroom technology and has received several GATF Intertech awards and Fogra certifications. It also relies on unpatented proprietary technologies and processes, including engineering required to adapt its products to a wide range of models of printing presses. R&D has been important in establishing and maintaining the company’s position as a market leader.

Established in 1918, Baldwin went through a management-led buyout in 1985. The company's initial public offering was in 1987 on the American Stock Exchange (now NYSE Amex)

Most of Baldwin’s business is driven by offset printing, the largest sector of the domestic and international printing markets. Offset printing is used for printing books, magazines, business forms, catalogs, greeting cards, packaging and newspapers.

Differentiators

Mergers and Alliances



In 2009 Baldwin added four new alliance partners including Q.I. Press Controls, Swedish in-line stiching company Tolerans, German ink supply specialist Betz Technologies and industry-leading provider of UV/IR curing systems, Nordson UV. Since 2006, Baldwin has concluded mergers or partnerships with a number of companies including Falk (Germany) for filtration technology, Oxy-Dry (U.S., Germany) for brush cleaning technology, Robatech (Switzerland) for gluing systems, Hildebrand Systems (Switzerland) for paper dust removal, Thermal Care/AWS (U.S.) for dampening conditioning and temperature control and Eltex Electrostatic (Germany) for UV technology for newspaper applications.

These relationships have played a valuable role in driving revenue growth by expanding Baldwin’s product lines and enhancing the company’s competitive technological advantages. This has further strengthened the company’s position as a global leader in the $1 billion process automation equipment sector of the printing equipment market and the $0.75 billion specialty chemicals sector of the consumables market in which the company operates.

In the Americas, Baldwin operates in North, Central and South America through its U.S. subsidiaries and a dealer network in Latin America. In Europe, the company operates through subsidiaries in the U.K., Germany, France, Sweden and Italy. In Asia, Baldwin operates through subsidiaries in China, India, Japan and Australia. All subsidiaries are wholly owned except for two, of which Baldwin holds 90% and 80% interests. Recent News
Baldwin FY 2010 Second Quarter Earnings Release and Conference Call Scheduled
Baldwin Secures $1.2M Order for Newspaper Press Equipment
Baldwin and PRISCO Extend Marketing and Distribution Alliance
Baldwin Announces $3.9 Million Net Income
Baldwin FY 2010 First Quarter Earnings Release and Conference Call Scheduled

    Risk Factors
  • Exchange rate risk
  • Growth of international printing industry
  • Political and economic risk in certain international markets
  • Infringement of intellectual property rights

The Outlook Still facing a continuing slump in the global printing industry, Baldwin said in its FQ1'10 report that its 2009 cost reductions and restructurings are complete and are providing the anticipated benefits. Year-over-year operating expense was lowered by 25% and the adjusted headcount decreased by 21%. The company strengthened its position by expanding its network of alliances and by making inroads with its technology in the growing emerging markets.

Cash flow from operations in the quarter was ($1.2) million compared to ($2.1) million in the first quarter of the prior year. Operating expenses during the quarter were $11.1 million, net of a non-recurring cost of $0.9 million investigation expense compared to $14.8 million in the same quarter last year. Aggressive working capital management generated $1.9 million in cash from working capital during the quarter. The company continues to control cost levels to fit current business conditions and is minimizing investment in working capital.

In October, Baldwin received $9.6 million in full settlement of its suit with technotrans, resolving a long-standing dispute between the parties concerning patent infringement, patent validity and the alleged amount of damages to Baldwin. The proceeds were used to reduce net debt of $16.2 million at September 30, 2009 to $6.7 million in October, 2009 thereby strengthening the balance sheet and providing Baldwin with sufficient liquidity to carry out its operating plan.

With evidence that the global recession for the printing industry may be easing, Baldwin is expanding its alliance relationships working to take advantage of growth opportunities in emerging markets and food blends. The company has expanded its Oxy-Dry Food Blends manufacturing facility in Illinois and continues to benefit from growth in that operation. In November, Baldwin released a new product application of its process automation technology in the packaging industry that managment says has opened up opportunities in a new market segment. The company also extended its marketing and distribution alliance with PRISCO for an additional five years.

Management
President and CEO-
Karl S. Puehringer

Vice President, Chief Financial Officer and Treasurer-
John P. Jordan

Chairman-
Gerald A. Nathe

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