Electronics for Imaging, Inc. Earnings: Swing to a Profit but Still Misses Estimates

Electronics for Imaging, Inc. (NASDAQ:EFII) reported its results for the second quarter. Electronics For Imaging Inc. deals in color digital print controllers, super-wide format printers and inks and print management solutions.

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Electronics for Imaging Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $3.6 million (7 cents per diluted share) in the quarter. Electronics for Imaging, Inc. had a net loss of $2.5 million or a loss 6 cents per share in the year earlier quarter.

Revenue: Rose 18.5% to $141.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: EFII fell short of the mean analyst estimate of 11 cents per share. It beat the average revenue estimate of $136.2 million.

Quoting Management: “EFI again delivered a solid quarter with double-digit revenue growth in all three segments, record recurring revenues, the third consecutive quarter of double-digit operating margin, and strong cash generation,” said Guy Gecht, Chief Executive Officer. “Our results reflect our focus on the fastest growing segments of the printing industry, and our ability to provide business process automation that allows our customers to more efficiently run their businesses. With new innovative inkjet products beginning to ship this quarter, we believe that our Company is well positioned to maintain our growth momentum into the third quarter.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.5%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 32.2% from the year earlier quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 17 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

Gross margins grew 4.5 percentage points to 55.7%. The growth seemed to be driven by increased revenue, as the figure rose 18.5% from the year earlier quarter while costs rose 7.6%.

Competitors to Watch: Gerber Scientific, Inc. (NYSE:GRB), Canon Inc. (NYSE:CAJ), Xerox Corporation (NYSE:XRX), Sony (NYSE:SNE), Presstek, Inc. (NASDAQ:PRST), Hewlett-Packard Company (NYSE:HPQ) and Duoyuan Printing, Inc. (NYSE:DYP).

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(Source: Xignite Financials)