EFI Reports Q3 Results: Vutek Encouraging, Outlook Raised
Press release from the issuing company
FOSTER CITY, Calif.--Oct. 19, 2005-- EFI, the world leader in digital imaging and print management solutions for commercial and enterprise printing, announced today that for the quarter ended September 30, 2005, revenue was $142.1 million. For the nine months ended September 30, 2005, revenue was $323.1 million.
Pro forma net income was $21.8 million or $0.35 per diluted share in the third quarter of 2005, up compared to $8.9 million or $0.15 per diluted share for the same period in 2004.
Pro forma net income was $33.5 million or $0.56 per diluted share for the nine months ended 2005, compared to $33.8 million or $0.56 per diluted share for the same period in 2004.
GAAP net income was $18.5 million or $0.30 per diluted share in the third quarter of 2005, compared to net income of $16.1 million or $0.27 per diluted share for the same period in 2004.
GAAP net loss, reflecting a charge for in-process research and development and the amortization of intangibles, for the nine months ended September 30, 2005 was $15.4 million or $0.28 per diluted share compared to net income of $37.2 million or $0.61 per diluted share for the same period in 2004.
Pro forma net income is computed by adjusting GAAP net income by the impact of amortization of acquisition-related intangibles, stock-based compensation and other non-recurring charges and gains.
As of September 30, 2005, the Company's total assets were $1.04 billion, up from the $1.02 billion reported as of December 31, 2004. Total liabilities as of September 30, 2005 were $375.1 million, up from the $350.3 million reported as of December 31, 2004.
"Our Fiery controller business exceeded our expectations, as we continue to experience stronger than anticipated customer demand for Fiery technology across our OEM partners. We are also very encouraged by the performance of our VUTEk superwide digital inkjet printing business in its first full quarter as part of EFI," said Guy Gecht, Chief Executive Officer of EFI. "In addition to the positive impact on the fourth quarter, we anticipate this demand to continue throughout 2006, balanced by the normal first half seasonality."
The Company also stated that it is raising its expectations for Q4. It expects revenues in the range of $140 million to $143 million and pro forma earnings per share of $0.33 to $0.35. GAAP earnings are estimated to be $0.23 to $0.25 per share. Both the pro forma and the GAAP earnings estimates for Q4 include the 9.1 million shares related to the Company's contingently convertible debt.
Reconciliation of pro forma to GAAP EPS estimates
Pro forma EPS estimate $0.33 $0.35
Amortization of acquisition-related intangibles $(0.15) $(0.15)
Amortization of stock based compensation $(0.01) $(0.01)
Tax effect of pro forma adjustments $0.06 $0.06
GAAP EPS estimate $0.23 $0.25
The amortization and values of acquisition-related intangibles from the VUTEk acquisition are based on preliminary valuations and are subject to change.
The company also announced that David Peterschmidt will be leaving its board of directors due to the increasing demands of his role as CEO at Openwave. Mr. Peterschmidt, who has served on the board since 2003, noted: "It has been a privilege to serve as a director for EFI for the past two years. As the current business level indicates, I believe that the company is well-positioned for continued growth and profitability with its experienced management team and track record of technological innovation and industry leadership."
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