EFI Provides Preliminary Q4 2007 Results and Q1 2008 Outlook
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Company Will Take Restructuring Charge in Q1
FOSTER CITY, Calif.--Jan. 9, 2008--EFI (Nasdaq: EFII), the world leader in customer-focused digital printing, today provided preliminary results for the fourth quarter of 2007 and outlook for the first quarter of 2008.
For the fourth quarter of 2007, ended December 31, the company expects revenues to be approximately $152 million, with non-GAAP earnings per share of $0.22-$0.24. The company expects GAAP earnings of $0.10 to $0.12.
The company attributed the results to weak demand for its high margin Fiery products. This resulted in increased pressure on gross margins which impacted profitability, as did higher than anticipated operating expenses of approximately $72 million.
"We are very disappointed with the results of our Fiery segment, which were weak across all our OEM partners," said Guy Gecht, CEO of EFI. "We are implementing significant steps to align our spending with this lower revenue and will take a restructuring charge in Q1 to reflect our reduced cost structure. While it will take some time, we are committed to taking the necessary steps to regain our traditional levels of profitability and growth."
Gecht continued, "Despite the shortfall, we are very pleased that our inkjet segment continues to perform well, posting growth of approximately 27% year-over-year in the fourth quarter. Our cost reduction plans will not impact our investment in this area, as we are seeing the benefits of strategically deploying assets to grow this business."
For the first quarter of 2008, the company expects to report revenues of approximately $133 million to $137 million. The results will be impacted by continued weakness in the Fiery business, compounded by normal seasonality coming off a lower Q4. However, the growth momentum in the inkjet segment is expected to continue in the first quarter at approximately 25% year-over-year.
The company will provide greater detail on its regularly scheduled fourth quarter conference call. The call is scheduled for Wednesday, January 23, 2007 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).
The call is being webcast by Thomson/CCBN and can be accessed at the investor relations portion of EFI's web site at www.efi.com.
About our Non-GAAP Net Income and Adjustments
To supplement our consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use a non-GAAP measure of net income that is GAAP net income adjusted to exclude certain recurring and non-recurring costs, expenses and gains. Our non-GAAP net income gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, non-GAAP net income is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with or an alternative for GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income by adjusting GAAP net income with the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, as well as non-recurring charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income prepared in accordance with GAAP.
About Electronics for Imaging, Inc. / EFI
EFI (www.efi.com) is the world leader in customer-focused digital printing innovation. EFI's award-winning solutions, integrated from creation to print, deliver increased performance, cost savings and productivity. The company's robust product portfolio includes Fiery® digital color print servers; VUTEk® superwide digital inkjet printers, UV and solvent inks; Jetrion® industrial inkjet printing systems; print production workflow and management information software; and corporate printing solutions. EFI maintains 23 offices worldwide.
CONTACT:
EFI
John Ritchie,
Chief Financial Officer,
650-357-3500
SOURCE: EFI
