EFI releases disappointing first quarter results

EFI has announced its preliminary results for the first quarter of 2017, showing a rare blip with revenue down 2 percent on the same period last year from $234.1 million to $228.7 million.

Guy Gecht, CEO of EFI, speaking at the company’s Drupa 2016 press briefing.

Not surprisingly, net income was also down 2 percent at $25.8 million as against last year’s figure of $26.3 million. However, when these figures are adjusted according to generally accepted accounting principles (GAAP), then net income rises to $5.5 million, up some 160 percent from last year’s $2.1 million.

Cash flow from operating activities was $14.9 million, up 66% compared to $9.0 million during the same period in 2016.

EFI has suggested that the major problem was related to sales of its Vutek wide format printers, though it’s also worth noting that the revenues for EFI’s Fiery and industrial inkjet also fell while its MIS software revenues rose.

There’s good reason to believe that EFI will improve its results through this year. It has successfully integrated Matan and sold out of the first batch of its new 3m and 5m printers. The Fiery business will pick up following last year’s acquisition of the Xerox FreeFlow DFE and the development of its Nozomi single pass corrugated press is still on track.

Guy Gecht, CEO of EFI, commented: “To address the challenges we faced in Q1 we are taking steps to better execute on our pipeline, while further leveraging the solid growth in the textile printing business, the start of the Nozomi beta rollout and our new product introductions in the back half of the year.” 


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