EFI Reports Record Q2 Revenue of $203M; Gecht Discusses Recent Acquisitions
FREMONT, Calif.—July 22, 2015—Electronics For Imaging, a world leader in customer-focused digital printing innovation, has announced its results for the second quarter of 2015.
For the quarter ended June 30, 2015, the company reported record second quarter revenue of $202.7 million, up 5 percent compared to second quarter 2014 revenue of $193.0 million. Non-GAAP net income was $22.9 million or $0.48 per diluted share, compared to non-GAAP net income of $21.0 million or $0.44 per diluted share for the same period in 2014. GAAP net income was $7.7 million or $0.16 per diluted share, compared to $6.9 million or $0.14 per diluted share for the same period in 2014.
For the six months ended June 30, 2015, the company reported revenue of $397.3 million, up 4 percent year-over-year compared to $381.7 million for the same period in 2014. Non-GAAP net income was $44.4 million or $0.92 per diluted share, compared to non-GAAP net income of $41.3 million or $0.86 per diluted share for the same period in 2014. GAAP net income was $13.0 million or $0.27 per diluted share, compared to $17.0 million or $0.35 per diluted share for the same period in 2014.
"Solid execution by our team led to a record June quarter for EFI, driven by strength across all of our business segments," said Guy Gecht, CEO of EFI. "We couldn't ask for a better setup as we begin integrating Reggiani and Matan, which we acquired early in the third quarter. These two acquisitions strengthen EFI's product offerings and capabilities, and most importantly, strategically expand our TAM as we enter the vast digital textile market."
EFI CEO Guy Gecht discusses with Printing Impressions Editorial Director/Editor-in-Chief Mark Michelson how the acquisitions of Matan and Reggiani will help drive new market opportunities for EFI and its customers.
Quarterly financial report announcements indicating record revenue increases have seemingly become quite commonplace for EFI. But EFI CEO Guy Gecht knows that it will take more than organic growth for EFI to reach his previously stated goal to reach the $1 billion in annual sales milestone by 2016. It will require EFI to continue to make wise acquisitions—two of the most recent that Gecht described briefly in a conference call yesterday with Printing Impressions Editorial Director/Editor-in-Chief Mark Michelson.
On July 1, EFI announced its acquisition of Italy-based Reggiani Machine. Reggiani provides an extensive lineup of industrial inkjet printers utilizing water-based inks for printing on fabric. The acquisition will rapidly enhance EFI’s position in the fastest-growing segment of the industrial inkjet printing space.
"This acquisition gives EFI an immediate leadership position in one of the world's largest industries undergoing the transformation from analog printing to digital. The textile printing market is just beginning that transition, which will enable manufacturers to shift from long-run to on-demand manufacturing, responding to the increasing demands of short runs and customizations,” Gecht was quoted as saying at the time of the acquisition announcement.
He subsequently told Printing Impressions that the industry-wide equipment and ink sales opportunity overall for that market space will be roughly $1.5 billion in the next two to three years. Gecht also revealed that several existing EFI wide-format graphic arts customers—upon hearing of the acquisition announcement—inquired about how Reggiani’s expertise in water-based ink technology might be applicable for the soft signage market.
On July 1, EFI also announced that it had acquired privately-held Matan Digital Printers for approximately $29 million in cash. “This acquisition gives EFI an even broader range of products to help our customers capture important opportunities in superwide-format display graphics printing," noted Gecht at the time. "Matan's strong R&D capability will further accelerate EFI's inkjet innovation, while filling a key spot in EFI's portfolio for a lower-acquisition cost line of roll-to-roll production printers focused on signage, banners, billboards and fleet graphics."
He further explained to Printing Impressions that adding Matan will enable EFI to offer a lower-cost, roll-to-roll option to its existing line of VUTEk inkjet printers. Although VUTEk reproduction quality remains higher, lesser quality needs for applications such as high-speed solvent fleet graphics may be better-suited for outputting on a lower priced Matan device, for example. He said Matan has also done a good job improving production speeds and in making in-line finishing capabilities available.
EFI is a global technology company, based in Silicon Valley, and is leading the worldwide transformation from analog to digital imaging. We are passionate about fueling customer success with products that increase competitiveness and boost productivity. To do that, we develop breakthrough technologies for the manufacturing of signage, packaging, textiles, ceramic tiles and personalized documents, with a wide range of printers, inks, digital front ends and a comprehensive business and production workflow suite that transforms and streamlines the entire production process.