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EFI Provides Preliminary Results for First Quarter

Wednesday, April 08, 2009

Press release from the issuing company

FOSTER CITY, Calif., -- Electronics For Imaging, Inc., the world leader in customer-focused digital printing, today announced its expected preliminary results for the three months ended March 31, 2009. Based on preliminary data, the Company expects first quarter revenues to be approximately $95 to $96 million. The Company anticipates reporting non-GAAP loss per share in the range of $(0.08) to $(0.10) and GAAP earnings per share in the range of $0.52 to $0.58. The Company had not previously provided specific guidance for Q1.

Preliminary GAAP results include estimated charges related to non-cash stock based compensation expense, amortization of acquisition-related intangibles, certain tax charges, asset impairment charges, project abandonment costs, as well as non-recurring charges and gains, such as our sale of certain real estate assets.

"Our Q1 revenue was impacted by the deteriorating spending environment as well as the difficulty for customers to obtain financing," said Guy Gecht, CEO of EFI. "As previously committed, we took aggressive actions to reduce our operational costs to reflect these lower revenue levels. Given the current market demand, we are implementing further steps to realign our cost structure while focusing on gaining market share through leveraging our industry leading products."

The Company noted that while none of the product lines were immune to the impact of the global economy, the inkjet business was most affected by the slowdown.

The Company expects Q1 non-GAAP operating expenses to be approximately $60 million, a decrease of approximately 13% year-over-year, and 11% sequentially. The better than expected non-GAAP operating expense levels were due to the implementation of accelerated cost control measures taken during the quarter. Further steps to realign costs are expected to result in Q2 non-GAAP operating expenses down approximately 20% year-over-year and 5% sequentially. These steps include employee salary reductions of 5%, senior management team salary reductions of 10% to 15%, as well as additional headcount reductions, among other initiatives.

The Company will provide its full financial results and hold its regularly scheduled Q1 2009 conference call on April 29, 2009 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A webcast of the conference call will be available at the Investor Relations portion of EFI's web site 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 a non-GAAP measure of net income that is GAAP net income adjusted to exclude certain recurring and non-recurring costs, expenses and gains. Management believes that our non-GAAP net income provides investors with useful information because it gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, non-GAAP net income is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with or an alternative for GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income by adjusting GAAP net income with the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, asset impairment charges, project abandonment costs, as well as non-recurring charges and gains, such as our sale of certain real estate assets. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income prepared in accordance with GAAP.




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