EFI Preliminary Q1 Report Strong, Company Increases Full Year Guidance
Press release from the issuing company
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 first quarter of 2007.
For the quarter ended March 31, 2007, revenue was $147.0 million, up approximately 10% when compared to first quarter 2006 revenue of $134.3 million.
Non-GAAP net income was $18.8 million or $0.29 per diluted share in the first quarter of 2007, compared to $18.0 million, or $0.28 per diluted share for the same period in 2006.
GAAP net income was $3.7 million or $0.06 per diluted share in the first quarter of 2007, compared to $12.3 million or $0.19 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 our Q1 revenue and earnings expectations, due largely to the benefits of our diversified product portfolio," said Guy Gecht, CEO of EFI. "The strong demand for our Fiery products drove our results this quarter. This allowed us to accelerate investments in our growing inkjet business, while still reporting increased profitability. We look for this trend to continue for the balance of the year, allowing us to increase our full year outlook."
Information regarding SEC filings and financial statements
In October 2006, the Company announced that a Special Committee of its Board of Directors had commenced an independent investigation of EFI's historical stock option granting practices. This investigation may result in, among other things, a determination by the Company that its historical accounting treatment of stock options was incorrect. Such a determination could require restatement of the Company's reported historical results. Similarly, because the investigation remains ongoing, the preliminary results contained within this press release are also subject to significant adjustment.
Until the Special Committee investigation is complete, the Company will be unable to file its Form 10-Q for the quarter ended September 30, 2006 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 March 31, 2007. The Company intends to work diligently to complete and file all required periodic reports with the SEC following completion of the investigation.
Outlook for Q2 2007
* For the second quarter of 2007, the Company expects revenues in the range of $154 million to $157 million.
* For the second quarter of 2007, the Company expects non-GAAP earnings per share of $0.31 to $0.33.
* For the full year 2007, the Company is increasing its previously announced revenue outlook of approximately 10% year over year growth to a range of 10% to 12% year over year growth.
* For the full year 2007, the Company expects earnings growth in the range of 17% to 20%, raising the lower end of its previously announced 15% to 20% range.
* For 2007, the Company expects to maintain a non GAAP tax rate of 24%.
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