EFI Reports Solid Q4: High demand for S-series Fiery servers
Press release from the issuing company
FOSTER CITY, Calif.--Jan. 27, 2004-- Electronics For Imaging (EFI), the world leader in digital imaging and print management solutions for commercial and enterprise printing, announced today that, for the quarter ended December 31, 2003, revenues were $107.9 million as compared to $90.7 million for the same quarter in 2002. For the twelve months ended December 31, 2003, revenues were $379.6 million as compared to $350.2 for the same period in 2002.
GAAP net income was $1.1 million or $0.02 per diluted share in the fourth quarter of 2003, compared to $7.9 million, or $0.14 per diluted share for the same period in 2002. For the twelve months ended December 31, 2003, GAAP net income increased to $26.5 million or $0.48 per diluted share, from net income of $16.0 million, or $0.29 per diluted share, for the same period in 2002.
Pro forma net income was $14.9 million or $0.27 per diluted share in the fourth quarter of 2003, an increase of 71% when compared to $8.7 million, or $0.16 per diluted share for the same period in 2002. For the twelve months ended December 31, 2003, pro forma net income increased 99% to $43.9 million or $0.80 per diluted share, from pro forma net income of $22.1 million, or $0.40 per diluted share in 2002.
For the fourth quarter 2003 and the twelve months ended December, 31 2003, we computed pro forma net income by adjusting GAAP net income by the write-off of in-process research and development and the amortization of acquisition-related intangibles as well as charges related to the Company's prior minority interest in Printcafe, and gains, net of expenses, related to intellectual property litigation.
As of December 31, 2003, the company's total assets were $1.01 billion, up from $727.1 million reported as of December 31, 2002. Total liabilities as of December 31, 2003 were $358.8 million, up from $93.0 million as of December 31, 2002.
"We are delighted to report our best quarterly pro forma results in over three years, driven by exceptional demand in our server business, especially for our new, high performance S-series Fiery servers," said EFI CEO Guy Gecht. "We finished 2003 with an encouraging level of business activity and we've started 2004 with a strong growth outlook. In addition to our core server business, we see great opportunities in our newest market-- Professional Printing Applications-- in which we have a compelling portfolio of high value print management and workflow software solutions that increase productivity, competitiveness and profitability."
The Company currently anticipates the following results in the first quarter of 2004:
Revenue in the range of $102 to $104 million.
GAAP diluted earnings per share of $0.16 to $0.17 after the amortization of acquisition-related intangibles.
Pro forma diluted earnings per share of $0.20 to $0.21.
Pro forma diluted earnings per share of $0.19 to $0.20 including the potential share count dilution and reduction of interest expense and amortized issuance costs related to our convertible debt, and excluding the amortization of acquisition-related intangibles.
In the second quarter of 2003, EFI issued $240 million of convertible debentures with a coupon rate of 1.50%. The quarterly pre-tax interest expense related to the bonds is $0.9 million and the related quarterly pre-tax amortization of issuance costs is $0.3 million. Under certain circumstances, (see below "Events that could cause our debt to convert") our debt may be converted to approximately 9.1 million shares of common stock. During the quarter in which the debt holder has the right to convert, the associated shares will be considered outstanding for that entire quarter, and the full 9.1 million shares will be included in the calculation of our diluted earnings per share. Also, once the debt holder has right to convert, the interest expense and the amortized issuance costs, net of associated taxes, related to the bonds would be excluded from the calculation of diluted earning per share. Whether the bonds become convertible is a function of EFI's stock price and is outside the control of the company
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