EFI Continues To Grow Sales Revenues

Edited by the Printingtalk editorial team Jan 31, 2005

EFI's performance for the quarter ended December 31, 2004 has improved, with revenues at $81.2 million.

EFI's performance for the quarter ended December 31, 2004 has improved, with revenues at $81.2 million.

For the year ended December 31, 2004, sales grew by four per cent to $394.6 million from the $379.6 million achieved in the year ended December 31, 2003.

Pro forma net income was $3.1 million or $0.06 per diluted share in the fourth quarter of 2004, compared to $14.9 million or $0.24 per diluted share for the same period in 2003.

Pro forma net income for the year ended December 31, 2004 was $36.9 million or $0.62 per diluted share, compared to the $43.9 million or $0.76 per diluted share achieved during the same period in 2003.

GAAP net income was $0.8 million or $0.02 per diluted share in the fourth quarter of 2004, compared to $1.1 million or $0.02 per diluted share for the same period in 2003.

GAAP net income for the year ended December 31, 2004 was $38.0 million or $0.64 per diluted share, compared to $26.5 million, or $0.47 per diluted share for the same period in 2003.

Pro forma net income is computed by adjusting GAAP net income by the impact of amortisation of acquisition-related intangibles and other non-recurring charges and gains.

As of December 31, 2004, the company's total assets were $1.02 billion, up from the $1.01 billion reported as of December 31, 2003.

Total liabilities as of December 31, 2004 were $350.3 million, down $8.5 million when compared with $358.8 million for the previous year.

"We are continuing to see impressive growth in our software business, including closing several significant deals this quarter with Fortune 500 customers.

Our expanding product portfolio has enabled us to serve larger enterprises, where customers appreciate both the breadth of our product line and our commitment to open standards," said Guy Gecht, EFI's chief executive officer.

"Despite a challenging quarter, we are pleased that we achieved strong cash flow from operations and delivered our 16th consecutive quarter of gross margin improvements," he added.

For 2005, the company currently anticipates first quarter revenues to be even with the final quarter of 2004.

EFI expects pro forma earnings per share of $0.06 and a GAAP loss per share of $0.02.

Both the pro forma and GAAP EPS estimates exclude the 9.1 million shares related to the company's contingently convertible debt.

The inclusion of those shares and the add-back to pre-tax income of $1.3 million related to interest and amortisation of bond issuance expenses would be accretive to earnings, and as such are not to be included in the EPS calculation said the company.

The company added that it expects to recognise a charge of approximately $2.5 million related to a previously announced staffing reduction action taken early in the first quarter.