EFI revenues show slight improvement

EFI has released its financial figures for its fourth quarter ending 31 December 2017, which show revenues up slightly by 1 percent to $269.2 million over the same quarter from the previous year. There was an overall net loss according to generally accepted accounting practices, or GAAP, of $25.4 million, which is particularly disappointing given that EFI made a net income of $19.9 million for the same period in 2016. Cash flow from operating activities was $8.9 million, down 86% compared to $65.2 million during the same period in 2016.

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

The year-end figures are broadly on a par with the Q4 results, with revenue of $993.3 million, up 0.1% year-over-year compared to $992.1 million for the same period in 2016. GAAP net loss was $14.4 million or $(0.31) per diluted share, compared to GAAP net income of $44.9 million or $0.94 per diluted share for the same period in 2016. Cash flow from operating activities was $51.3 million, down 58% compared to $121.0 million during the same period in 2016. 

Much of the damage seems to come from a slump in revenue for the Fiery software, down 13 percent year on year to $61m with EFI forecasting a further 20 percent decline for the next quarter. This is inevitable given that we’re seeing a slowdown in the dry toner printer market including some inkjet presses replacing dry toner, which accounts for much of the demand for Fiery servers.

On the other hand, the industrial inkjet and productivity software segments reported modest growth with more optimistic forecasts for the next quarter. In particular EFI has put a great deal of effort into its Nozomi corrugated press and this is likely to start generating profits over the next year or so.

However, these figures are hardly the “record revenue” trumpeted by EFI’s press release but I guess that’s marketing for you. Guy Gecht, EFI’s CEO, commented: “We look this quarter as our first step in re-establishing a consistent track record and regaining credibility after the missteps of the past year.”

He added: “We still have a lot to do. We are doubling down on investment in our growth areas, providing expanded sales coverage, increasing the pace of new product development, and growing our services organization, among other initiatives. We’re also making organizational and personal changes and continue to add experienced talent at all levels.”

Gecht was also upbeat about Fujifilm’s proposed takeover of Xerox, and its consequent restructuring of the Fuji Xerox division, noting: “We view this deal as a good opportunity for us to do more with the new Xerox, and we will certainly propose to Xerox that as a first step, we extend the strategic arrangement we have regarding our production deals with partnership to the Fuji-Xerox territories, something we were unable to do in the past given the dynamics of this joint venture.”


Posted

in

,

by

Syndicate content

You can license the articles from Printing and Manufacturing Journal to reproduce in other publications. I generally charge around £150 per article but I’m open to discussing this for each title, particularly for publishers that want to use multiple stories. I can provide high res versions of images for print publications.

I’m used to working with overseas publishers and am registered for VAT with the UK’s HMRC tax authority but obviously won’t charge VAT to companies outside the UK. You can find further details and a licensing form from this page, or just contact me directly here.

Support this site

If you find the stories here useful then please consider making a donation to help fund Printing and Manufacturing Journal, either as a one-off or a repeat payment. Journalism is only really useful if it’s truly independent and this is the only such news source serving the print/ manufacturing sectors.

However, there are costs involved in travelling to cover events, as well as maintaining this site, not to mention the time that it takes to carry out research, check facts and interview people. So if you value this work, then please help to maintain it and keep it free to read.

Subscribe

Never miss a story – subscribe to Printing and Manufacturing Journal to receive an email notification every time an article is published here. It’s completely free of charge and you can cancel the subscription at any point without any hassle. There’s no need to provide any information other than an email address and subscribers details are not for sale so there’s no risk of any further marketing spam.

Related stories

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *