NEW YORK--Sept. 4, 2002--In a presentation to investors at the Salomon Smith Barney Tech2002 Industry Conference today, EFI management will affirm consensus estimates for the third quarter, ended September 30, 2002, of $92 million in revenues with pro forma earnings per share of $0.13. The company will also state that it anticipates achieving fourth quarter consensus estimates of $93 million in revenues and pro forma earnings per share of $0.14.
Pro forma earnings exclude the effect of the amortization of intangibles related to acquisitions, and for the third quarter will exclude charges related to the settlement of a 1997 class action lawsuit.
"We are encouraged by the growing demand for the Fiery products, especially in the stand alone color servers, and with the continuous execution of our plan to migrate our business model to design licensing in the lower end of the product line up," said Guy Gecht, Chief Executive Officer of EFI. "Despite the weak economic environment, we anticipate this momentum will continue into the fourth quarter, allowing us to offset our normal seasonal weakness in the December quarter."
Separately, the company announced that it has decided to settle all claims pending against the Company and certain of its current and former officers in the 1997 securities class action case, Steele v. Electronics for Imaging. The Company will incur a one-time charge to GAAP after-tax net income in the third quarter of 2002 of $3.1 million or $0.06 per share, including legal fees and costs related to the settlement.
While there has been no change in the company's view that the lawsuit had absolutely no merit, EFI determined that settling the suit is currently in the best interests of the company and its shareholders.
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