EFI posts lower Q2 results due to delayed shipments

EFI has announced its second-quarter results, citing a delay in commercial availability of its new hybrid printer for the lower results.

Revenues for the quarter ending 30 June 2009 came in at $90m (£54.7m), compared with $186m in Q2 2008, producing a GAAP net loss of $13.3m, or 27cents per diluted share.

EFI chief executive Guy Gecht said in a conference call that the main disappointment for the quarter was the delay in shipping its Vutek GS 3200. Despite strong initial orders, the state-of-the-art technology involved meant delays to the final calibration of some units of the $600,000 printer.

"It is difficult to predict when this printer will be finalised for broad shipment and revenue recognition," said Gecht. "While we are hoping it is a matter of a few weeks, at this point we will not take the risk of providing a specific date."

However, Gecht said the inkjet business improved sequentially both in revenues and margin, and said that the company has plans to add six new Vutek products to its roster, including an entry product priced at $70,000 and its first 5 metre device, which will be available in the fourth quarter.

The Jetrion division also performed well with greater than 50% year-on-year growth.

The company also made a number of cost-cutting measures, reducing operating expenses by roughly 22%, but this wasn't enough to offset the slowdown elsewhere.

Sales of its Fiery engine were hit by a move towards lower-end products, while its applications division saw revenues up 7% in the US, but 35% down in Europe.

The Q2 figures also included the cost of streamlining the company's ink manufacturing business, consolidating production of UV ink and outsourcing solvent ink to Nazdar.

Gecht added that problems for European customers in accessing finance had also impacted the quarter's results.

Shares in EFI were down 11% on the Nasdaq at the time of writing to $11.

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