EFI CEO Guy Gecht talks about the next earnings period and industry trends at EFI Connect
Published on April 21, 2010
Cary Sherburne: Hi, Cary Sherburne, I’m Senior Editor at WhatTheyThink.com and I'm here with Guy Gecht CEO of EFI. And Guy next week you know, there’s just the two of right, you know, and you’re going to do your earnings release next week and can’t you just give me a little insight?
Guy Gecht: Just the two of us and a small little camera. You know what, I’ll tell you that but keep it to yourself. Next week when we announce our quarterly results we’re going to clearly say that Q1 started on January 1st, and ended on March 31st. And I think – I don’t know how people are going to react to this but we’re going to go with that statement.
Cary Sherburne: That’s startling news.
Guy Gecht: Startling news and then of course we’re going to say how much product we sold and how much profit we made if we made and I would leave that to next week because otherwise people are not going to attend if I tell you everything today.
Cary Sherburne: We could the video until next week. I could buy some stock or sell come stock.
Guy Gecht: Exactly. Just to see who’d be paying attention.
Cary Sherburne: Right, that’s right. Well, I hope you have a really good earnings report next week. We’ll be watching, listening to the web x.
Guy Gecht: Yeah we got erning list I think that – I heard from many customers that the business is doing a lot better than a year ago. It’s always good news for us and for many technology vendors and for this industry. I was also very encouraged with the energy behind, I’m going to evolve my business. I’m going to get into new things. I’m going to go deeper in some areas. Standing still and waiting for the economy to be a lot better is no option for me.
People are very resolve and I’m going to evolve my business, which is good to hear.
Cary Sherburne: You know we’ve been interviewing a lot of customers here at Connect and several of them have seen double digit improvement in the first quarter over last year. That’s very encouraging.
Guy Gecht: Very encouraging. We love to do that. We all know that we’re tied to our customers. If they go to a business we go with them if they do a good job.
Cary Sherburne: But you know the ones that are seeing the growth are the ones that have made the right investments. They have an MIS, they have a customer facing web store. You know, they’re taking all the touches out of the process that they can. They’re using products like Print Flow and those are the people that are being successful.
Guy Gecht: You talked about it and we talked about it. I think that the business has changed. The profit that you made ten years ago is no longer available the same way. You’ve got to go with new services. You got a lot more efficient. You got to know what you’re doing. You have to had data. You have to automate. You have to get a lot of the many processes from your old business. You’ve got to be a different level – working a different level of business and offer a different level of services to customers to grow in this environment.
Cary Sherburne: Yeah and that’s the ones that survive. That’s the ones that are seeing double digits even in this shaky...
Guy Gecht: That’s what we’re seeing too. I mean, if somebody is investing in the right things, if they implement the right changes they get closer to the customers via the web, they’re adding value. They have more margin, more volume to print. They’re doing a lot better than people that stayed in the same business in five or ten years ago.
Cary Sherburne: Also the people that are reskilling their employees or hiring different skills in their workplace.
Guy Gecht: Absolutely, reskilling employees, learning. There’s over 120 seminars here. Well attended. The other thing is Cary, is digital printing is making a difference. People are making good money out of it. It’s strong. There’s more jobs moving in. The jobs are getting smaller and smaller but bigger numbers. The turnaround time is faster and faster. This is the turning point for digital printing.
Cary Sherburne: It’s an exciting time to be in the industry.
Guy Gecht: Absolutely. It’s an exciting time to be in Vegas. Good to see you here.
Cary Sherburne: Yeah.
Guy Gecht: Thanks for coming.
Cary Sherburne: What happens in Vegas stays in Vegas except at Connect.
Guy Gecht: Exactly.
Cary Sherburne: All right, thanks guy.
Guy Gecht: Take care.
Cary Sherburne: Right.
Forrest Leighton: So it's a matter of adjusting to based on where they are. We had one example where one of the -- I think John actually went into one of the folks down in, I think it was, the southeast and their business was off significantly from the year before and they didn't know why. So it was really taking a fundamental look at the business, at who their customers were, what vertical markets they were focused on. The 80/20 rule: 80 percent of your business coming from 20 percent of your customers. Of that 20 percent what are the markets that they're hitting and then what are the applications that our digital printing can help to drive and help to bring more revenue for. So there are fundamental approaches to the business.
Cary Sherburne: That's great. That's really important. Good work.