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AnonymousInactiveEFI Reports Record Q1 2013 With Revenue of $171M, Up 7%
Growth Across All Business Segments Drives 24% Operating Income Increase and Solid Cash Generation
FOSTER CITY, Calif., April 2013 (GLOBE NEWSWIRE) — Electronics For Imaging, Inc. (Nasdaq:EFII), a world leader in customer-focused digital printing innovation, today announced its results for the first quarter of 2013.
For the quarter ended March 31, 2013, the Company reported first quarter record revenue of $171.4 million, up 7% compared to first quarter 2012 revenue of $160.1 million. First quarter 2013non-GAAP net income was $15.8 million or $0.33 per diluted share, which included an unfavorable non-operational currency impact of $0.04 per diluted share, compared to non-GAAP net income of $14.2 million or $0.30 per diluted share for the same period in 2012. GAAP net income was $8.4 million or $0.17 per diluted share, compared to $6.2 million or $0.13 per diluted share for the same period in 2012.
"The EFI team delivered a great first quarter with revenue growth above our expectations, a solid increase in profitability, and very strong cash generation," said Guy Gecht, CEO of EFI. "With new breakthrough products across our portfolio and sales opportunities at trade shows around the globe, we look for this robust demand to continue into the current quarter as EFI’s innovation continues to help customers drive growth and productivity in their businesses."
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 http://www.efi.com .
About EFI
EFI™ ( http://www.efi.com ) is a worldwide provider of products, technology, and services leading the transformation of analog to digital imaging. Based in Silicon Valley with offices around the globe, the company’s powerful integrated product portfolio includes digital front-end servers; superwide, wide-format, label, and ceramic inkjet presses and inks; production workflow, web-to-print, and business automation software; and office, enterprise, and mobile cloud solutions. These products allow users to produce, communicate and share information in an easy and effective way, and enable businesses to increase their profits, productivity, and efficiency.
Safe Harbor for Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as "anticipate", "believe", "estimate", "expect", "consider" and "plan" and statements in the future tense are forward looking statements. The statements in this press release that could be deemed forward-looking statements include statements regarding EFI’s strategy, plans, expectations regarding its revenue growth, product portfolio, productivity, future opportunities for EFI and its customers, and any statements or assumptions underlying any of the foregoing.
Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially, or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not necessarily limited to, unforeseen expenses; the difficulty of aligning expense levels with revenue; management’s ability to forecast revenues, expenses and earnings; any world-wide financial and economic difficulties and downturns; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; the unpredictability of development schedules and commercialization of products by the leading printer manufacturers and declines or delays in demand for our related products; changes in the mix of products sold; the uncertainty of market acceptance of new product introductions; intense competition in each of our businesses, including competition from products developed by EFI’s customers; challenge of managing asset levels, including inventory and variations in inventory levels; the uncertainty of continued success in technological advances; the challenges of obtaining timely, efficient and quality product manufacturing and supply of components; litigation involving intellectual property rights or other related matters; our ability to successfully integrate acquired businesses; the uncertainty regarding the amount and timing of future share repurchases by EFI and the origin of funds used for such repurchases; the market prices of EFI’s common stock prior to, during and after the share repurchases; any disruptions in our operations, the difficulty to retain employees, and additional expenses that we may incur as a result of our relocation from the Foster City campus; the compliance with the new requirements regarding the "conflict minerals," if they are found to be used in our products, and any other risk factors that may be included from time to time in the Company’s SEC reports.
The statements in this press release are made as of the date of this press release. EFI undertakes no obligation to update information contained in this press release. For further information regarding risks and uncertainties associated with EFI’s businesses, please refer to the section entitled "Risk Factors" in the Company’s SEC filings, including, but not limited to, its annual report on Form 10-K and its quarterly reports on Form 10-Q, copies of which may be obtained by contacting EFI’s Investor Relations Department by phone at 650-357-3828 or by email at investor.relations@efi.com or EFI’s Investor Relations website at http://www.efi.com .
Use of Non-GAAP Financial Information
To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use non-GAAP measures of net income (loss), as the case may be, and earnings per diluted share that are GAAP net income (loss), as the case may be, and GAAP earnings per diluted share adjusted to exclude certain recurring and non-recurring costs, expenses and gains. A reconciliation of the adjustments to GAAP results for the three months ended March 31, 2013and 2012is provided below. In addition, an explanation of how management uses non-GAAP financial information to evaluate its business, the substance behind management’s decision to use this non-GAAP financial information, the material limitations associated with the use of non-GAAP financial information, the manner in which management compensates for those limitations, and the substantive reasons management believes that this non-GAAP financial information provides useful information to investors is included under "About our Non-GAAP Net Income and Adjustments" after the tables below.
These non-GAAP measures are not in accordance with or an alternative to GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures, used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income (loss), as the case may be, or earnings per diluted share prepared in accordance with GAAP.
Electronics For Imaging, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2013 2012 Revenue $ 171,359 $ 160,056 Cost of revenue 77,499 72,389 Gross profit 93,860 87,667 Operating expenses: Research and development 31,067 30,899 Sales and marketing 32,736 30,917 General and administrative 13,698 12,902 Amortization of identified intangibles 4,927 4,184 Restructuring and other 1,902 1,084 Total operating expenses 84,330 79,986 Income from operations 9,530 7,681 Interest and other income (expense), net (2,924) 570 Income before income taxes 6,606 8,251 Benefit from (provision for) income taxes 1,756 (2,017) Net income $ 8,362 $ 6,234 Fully Diluted EPS calculation Net income $ 8,362 $ 6,234 Net income per diluted common share $ 0.17 $ 0.13 Shares used in diluted per share calculation 47,986 47,359 Electronics For Imaging, Inc. Reconciliation of GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2013 2012 Net income $ 8,362 $ 6,234 Amortization of identified intangibles 4,927 4,184 Stock based compensation – Cost of revenue 469 298 Stock based compensation – Research and development 1,867 1,563 Stock based compensation – Sales and marketing 888 756 Stock based compensation – General and administrative 3,420 2,049 Restructuring and other 1,902 1,084 General and administrative ("G&A") Acquisition-related transaction costs 19 451 Change in fair value of contingent consideration (262) — Sublease income related to our deferred property sale (720) — Depreciation expense related to our deferred property sale 410 — Interest and other income (expense), net ("OI&E"): Interest expense related to our deferred property sale 880 — Relocation expenses related to deferred property sale 76 — Tax effect of non-GAAP adjustments (6,487) (2,457) Non-GAAP net income $ 15,751 $ 14,162 Non-GAAP net income per diluted common share $ 0.33 $ 0.30 Shares used in per share calculation 47,986 47,359 Electronics For Imaging, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2013 2012 Assets Cash and cash equivalents $ 298,251 $ 283,996 Short-term investments 83,210 80,966 Accounts receivable, net 126,497 135,110 Inventories 62,164 58,343 Other current assets 86,428 74,877 Total current assets 656,550 633,292 Property and equipment, net 85,679 86,582 Goodwill 216,530 219,383 Intangible assets, net 74,460 80,244 Other assets 58,380 55,397 Total assets $ 1,091,599 $ 1,074,898 Liabilities & Stockholders’ equity Accounts payable $ 72,222 $ 63,446 Deferred proceeds from property transaction 181,096 180,216 Accrued and other liabilities 126,410 119,174 Income taxes payable 5,057 7,562 Total current liabilities 384,785 370,398 Contingent and other liabilities 7,654 17,742 Deferred tax liabilities 6,012 6,210 Long term taxes payable 31,017 29,755 Total liabilities 429,468 424,105 Total stockholders’ equity 662,131 650,793 Total liabilities and stockholders’ equity $ 1,091,599 $ 1,074,898 Note: In accordance with ASC 805, we revised previously issued financial information to reflect adjustments to the accounting for business acquisitions as if they occurred on the acquisition date. Accordingly, we have increased goodwill and accrued and other liabilities by $1.1 million at December 31, 2012 to reflect opening balance sheet adjustments related to our acquisitions of Cretaprint, OPS, and Technique. Electronics For Imaging, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2013 2012 Cash flows from operating activities: Net income $ 8,362 $ 6,234 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7,158 6,139 Deferred taxes (5,366) 602 Tax benefit from employee stock plans 1,885 127 Excess tax benefit from stock-based compensation (2,013) (385) Stock-based compensation 6,644 4,666 Provision for (releases of) inventory obsolescence reserves 1,842 (35) Provision for allowance for bad debts and sales-related allowances 1,337 201 Contingent consideration payments related to business acquired (618) — Other non-cash charges and adjustments 306 2,231 Changes in operating assets and liabilities 3,081 (9,814) Net cash provided by operating activities* 22,618* 9,966 Cash flows from investing activities: Purchases of short-term investments (12,288) (20,415) Proceeds from sales and maturities of short-term investments 9,860 29,298 Purchases, net of proceeds from sales, of property and equipment (2,269) (1,307) Businesses purchased, net of cash acquired — (29,106) Proceeds from notes receivable of acquired business — 5,216 Net cash used for investing activities (4,697) (16,314) Cash flows from financing activities: Proceeds from issuance of common stock 7,621 6,094 Purchases of treasury stock and net -
AuthorApril 25, 2013 at 8:32 AM
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