EFI Provides Update on Assessments and Review
Also provides Q3 2017 guidance and information on upcoming investor events
Electronics For Imaging, Inc. (Nasdaq:EFII), a world leader in customer-focused digital printing innovation, provided an update on the ongoing assessments related to the timing of revenue recognition and its controls and an update on the independent review.
Although the assessments and the review are not yet complete, significant additional progress has been made, and based on the work so far, the Company does not currently expect to report any material error that would require a restatement of any of its previously-reported financial results for any period. As part of the controls assessment, the Company expects to report material weaknesses in internal control over financial reporting and to report that the Company's disclosure controls were not effective in prior periods.
The Company plans to host a conference call to discuss the second quarter results and third quarter outlook after filing its quarterly report on Form 10-Q for the period ended June 30, 2017, which the Company plans to do promptly following completion of the assessments and the review.
Q3 2017 Guidance
For the third quarter of 2017, the Company currently anticipates revenue of $255 million to $260 million, GAAP earnings per diluted share of $0.02 to $0.07, and non-GAAP earnings per diluted share of $0.55 to $0.60 which includes $0.05 negative impact from the commercialization of the new Nozomi corrugated inkjet printer in the quarter.
The anticipated growth rates for the business segments are mid to high single-digit growth for inkjet, which assumes one Nozomi unit being recognized in the third quarter, low single-digit growth for software and low to mid-single digit growth for Fiery. The Company expects an impact in cash from operations from the monies spent on the assessments, the review and related activities.
The Company's CEO Guy Gecht and CFO Marc Olin will participate in the Citibank 2017 technology conference and in a webcast at 1:25 p.m. on Thursday, September 7, 2017. The Company is not intending to make further comments on its previously-announced assessments, the review, or its financial results for the second quarter of 2017 until the Company files its quarterly report on Form 10-Q for the period ended June 30, 2017.
Factory and Customer Visits
The Company continues to expect to host investors at its previously-scheduled European factory and customer visits, which will include Nozomi, Cretaprint and Reggiani installations and factory tours on September 13 and 14, 2017.