EFI Reports Revenue Decline in Q4 2009 Results
FOSTER CITY, CA—January 21, 2010—Electronics For Imaging, Inc. (Nasdaq: EFII), a world leader in customer-focused digital printing innovation, today announced its results for the fourth quarter of 2009. For the quarter ended December 31, 2009, the company reported revenues of $114.0 million, compared to fourth quarter 2008 revenue of $135.3 million.
GAAP net loss was $(3.4) million or $(0.07) per diluted share in the fourth quarter of 2009, compared to a GAAP net loss of $(104.5) million or $(2.03) per diluted share for the same period in 2008.
GAAP net loss was $(2.2) million or $(0.04) per diluted share for the twelve months ended December 31, 2009, compared to a GAAP net loss of $(113.4) million or $(2.16) per diluted share for the same period in 2008.
Non-GAAP net income was $2.3 million or $0.05 per diluted share in the fourth quarter of 2009, compared to non-GAAP net income of $6.7 million or $0.13 per diluted share for the same period in 2008.
Non-GAAP net loss was $(10.7) million or $(0.22) per diluted share for the twelve months ended December 31, 2009, compared to non-GAAP net income of $41.2 million or $0.74 per diluted share for the same period in 2008.
“Our results continue to show improvement as we delivered 13% sequential revenue growth driven by a strong rebound in our Fiery business posting 26% quarter over quarter growth. In addition, we delivered on our commitment to return to profitability and generate cash in the fourth quarter,” said Guy Gecht, CEO of EFI. “As we look to 2010, we will be focused on profitable growth while continuing to provide the print industries’ most innovative technology.”
EFI will discuss the Company’s financial results by conference call at 2:00 p.m. PDT today. Instructions for listening to the conference call over the Web are available on the investor relations portion of EFI’s website 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 non-GAAP measures of net income and earnings per diluted share that are GAAP net income and GAAP earnings per diluted share adjusted to exclude certain recurring and non-recurring costs, expenses and gains.
We believe that the presentation of non-GAAP net income and non-GAAP earnings per diluted share provides important supplemental information to management and investors regarding non-cash expenses, significant recurring and non-recurring items that we believe are important to understanding our financial and business trends relating to our financial condition and results of operations. Non-GAAP net income and non-GAAP earnings per diluted share are among the primary indicators used by management as a basis for planning and forecasting future periods and by management and our board of directors to determine whether our operating performance has met specified targets and thresholds. Management uses non-GAAP net income and non-GAAP earnings per diluted share when evaluating operating performance because it believes that the exclusion of the items described below, for which the amounts and/or timing may vary significantly depending upon the Company’s activities and other factors, facilitates comparability of the Company’s operating performance from period to period. We have chosen to provide this information to investors so they can analyze our operating results in the same way that management does and use this information in their assessment of our business and the valuation of our Company.
We compute non-GAAP net income and non-GAAP earnings per diluted share by adjusting GAAP net income and GAAP earnings per diluted share to remove the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expense, as well as restructuring related and non-recurring charges and gains and the tax effect of these adjustments. Such non-recurring charges and gains include project abandonment costs, goodwill and asset impairment charges, costs related to our stock option review completed in 2008, certain legal settlements, and our sale of certain real estate assets. Examples of these excluded items are described below:
• Amortization of acquisition-related intangibles. Intangible assets acquired to date are being amortized on a straight-line basis.
• Stock-based compensation expense is recognized in accordance with FASB Accounting Standards Codification, Topic 718, Stock Compensation.
• Non-recurring charges and gains, including:
- Restructuring related charges. We have incurred restructuring charges as we reduce the number and size of our facilities and the size of our workforce.
- Asset impairment costs consist of equipment and non-cancellable purchase orders incurred relating to a planned product that was cancelled.
- Gain on sale of building and land. On January 29, 2009, we sold a portion of the Foster City, California campus for a final amount of $137.3 million to Gilead Sciences, Inc., resulting in a gain on sale of approximately $80 million.
- Goodwill impairment. In the fourth quarter of 2008, we recognized a goodwill impairment charge of approximately $104 million.
• Tax effect of these adjustments.
These non-GAAP measures are not in accordance with or an alternative for GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures, used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income or earnings per diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income and non-GAAP earnings per diluted share should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
For more information on the non-GAAP adjustments, please see the table captioned “Reconciliation of GAAP Net Income to Non-GAAP Net Income” included in this press release.
EFI (www.efi.com) is a 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; Rastek UV wide-format inkjet printers; Jetrion® industrial inkjet printing systems; print production workflow and management information software; and corporate printing solutions. EFI maintains 23 offices worldwide.