Monday July 30 -- FOSTER CITY, Calif.-- EFI, the world leader in digital controllers, super-wide format printers and inks and print management solutions, announced today its preliminary results for the second quarter of 2007.
For the quarter ended June 30, 2007, the Company reported record revenues of $162.5 million, up approximately 18.3% when compared to second quarter 2006 revenue of $137.3 million.
Non-GAAP net income was $21.7 million or $0.33 per diluted share in the second quarter of 2007, compared to $18.2 million, or $0.28 per diluted share for the same period in 2006.
GAAP net income was $8.8 million or $0.15 per diluted share in the second quarter of 2007, compared to $11.8 million or $0.18 per diluted share for the same period in 2006.
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 that we exceeded both revenue and earnings expectations in Q2, driven by strength across all three of our major product lines," said Guy Gecht, CEO of EFI. "The record revenues allowed us to increase investment in our business, while still achieving 18% year over year earnings growth. We are increasing our revenue outlook for the full year driven by robust demand for new Fiery products along with VUTEk's strong sales pipeline, that has been led by the QS product line."
The Company also announced that it is currently targeting to become compliant with its SEC filings at the end of the third quarter. This date is subject to revision.
Information regarding SEC filings and financial statements
On June 29, 2007, the Company announced the completion of the independent investigation by a special committee of its board of directors into its historical stock option practices, and the remedial actions it is taking in response to the findings and recommendations of the special committee.
As previously announced, EFI is currently working on the anticipated restatement and plans to become current in its public filings with the Securities and Exchange Commission as soon as practicable. The financial statement effects resulting from the special committee's findings also remain subject to final review by EFI's independent registered public accounting firm.
Because the Company's work related to the restatement is ongoing, the preliminary results contained within this press release are subject to significant adjustment. Until the restatement is complete, the Company will be unable to file its Form 10-Q for the quarters ended September 30, 2006 and March 31, 2007 or its Form 10-K for the year ended December 31, 2006. The Company also expects to delay the filing of its Form 10-Q for the quarter ended June 30, 2007.
Outlook for Q3 2007
* For the third quarter of 2007, the Company expects revenues in the range of $157 million to $160 million.
* For the third quarter of 2007, the Company expects non-GAAP earnings per share of $0.35 to $0.37.
* The Company is increasing its previously announced year over year revenue growth from 10% to 12% to approximately 12% to 13%.
* For the full year 2007, the Company is reiterating its earnings growth range of 17% to 20%.
* For 2007, the Company expects a non-GAAP tax rate of 24% to 25%.
GAAP net income outlook includes an estimated charge related to the implementation of FAS 123R. This estimate is subject to change. Both the non-GAAP and the GAAP earnings estimates include the 9.1 million shares related to the Company's contingently convertible debt when dilutive to earnings.