(October 23, 2008) EFI, the world leader in customer-focused digital printing, announced today its results for the third quarter of 2008. For the quarter ended September 30, 2008, the Company reported revenues of $144.7 million, compared to third quarter 2007 revenue of $158.3 million.
GAAP net (loss) was $(3.6) million or $(0.07) per diluted share in the third quarter of 2008, compared to net income of $8.1 million or $0.13 per diluted share for the same period in 2007.
GAAP net (loss) was $(8.9) million or $(0.17) per diluted share for the nine months ended September 30, 2008, compared to net income of $19.8 million or $0.32 per diluted share for the same period in 2007.
Non-GAAP net income was $10.4 million or $0.20 per diluted share in the third quarter of 2008, compared to $22.3 million or $0.34 per diluted share for the same period in 2007.
Non-GAAP net income was $34.5 million or $0.61 per diluted share for the nine months ended September 30, 2008, down 46% from $63.6 million or $0.96 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 and in-process research and development, stock based compensation expenses, certain tax charges, as well as other non-recurring charges and gains.
"We are pleased with our revenue results in light of the difficult economic environment, which negatively impacted demand and limited our inkjet customers' ability to obtain necessary financing," said Guy Gecht, CEO of EFI. "At the same time, we are delivering on our commitment to use our real estate assets to help rebuild shareholder value. In the current environment we are cautious regarding the short term outlook, yet remain excited about the long-term opportunity for our business, particularly our inkjet products."
Outlook for Q4 2008
For the fourth quarter of 2008, the Company expects revenues in the range of $135 million to $145 million.
For the fourth quarter of 2008, the Company expects GAAP earnings per share of $(0.05) to $0.03.
For the fourth quarter of 2008, the Company expects non-GAAP earnings per share of $0.12 to $0.20.
For the fourth quarter of 2008, the Company expects a non-GAAP tax rate of approximately 22% - 23%.
GAAP net income outlook includes an estimated charge related to non-cash stock based compensation expense, the amortization of acquisition related intangibles, charges associated with facility closures, and headcount reductions related to the Pace acquisition. This estimate does not include anticipated charges and amortization of acquisition related intangibles for the acquisition of Raster Printers which is expected to close in the fourth quarter of 2008. This estimate is subject to change.
EFI will discuss the Company's financial results by conference call at 2:00 p.m. PDT today. Instructions for listening to the conference call over the Web are available on the investor relations portion of EFI's website 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, as well as non-recurring charges and gains. 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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