FOSTER CITY, Calif. April 23, 2008 -- EFI, the world leader in customer-focused digital printing, announced today its results for the first quarter of 2008. For the quarter ended March 31, 2008, the Company reported revenues of $136.6 million, compared to first quarter 2007 revenue of $147.8 million.
Non-GAAP net income was $11.8 million or $0.20 per diluted share in the first quarter of 2008, compared to $19.6 million or $0.30 per diluted share for the same period in 2007.
GAAP net loss was $(5.4) million or $(0.10) per diluted share in the first quarter of 2008, compared to $2.1 million or $0.04 per diluted share for the same period in 2007.
Non-GAAP net income is computed by adjusting GAAP net income by the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, as well as other non-recurring charges and gains.
"We are pleased to report revenue and earnings at the high end of our range due to the better than expected performance of our Fiery business," said Guy Gecht, CEO of EFI. "At the same time, challenging economic conditions in the US resulted in growth rates in our inkjet business below our expectations. Despite this environment, our inkjet businesses still grew a robust 11% over the prior year, fueled by approximately 20% growth in international markets. We expect to see continued sequential improvement in both our Fiery and inkjet businesses during the current quarter."
The Company also announced today that it is exercising its right to redeem all $240 million outstanding principal amount of its 1.50% Convertible Senior Debentures due 2023 (the "Securities") on June 2, 2008 (the "Redemption Date").
The redemption of the Convertible Senior Debentures will reduce the number of shares used in the calculation of earnings per share by approximately 9.1M shares effective as of the redemption date.
The redemption price for the Securities is 100% of the principal amount, plus accrued and unpaid interest (including contingent interest, if any) and additional interest amounts, if any, to, but not including, the Redemption Date. This press release does not constitute a notice of redemption of the Securities. The redemption is made solely pursuant to EFI's Notice of Redemption, dated May 2, 2008, which will be delivered by the trustee under the indenture to the holders of the Securities.
The Securities may be converted at any time before 5:00 p.m., New York City time, on May 30, 2008, the business day prior to the Redemption Date, in accordance with the terms and conditions set forth in the indenture and the Securities. The Securities are convertible into EFI's common stock at a rate of 37.8508 shares of common stock per $1,000 principal amount of Securities, subject to adjustment in certain circumstances.
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