EFI's confidence grows in hitting billion dollar revenue target after record quarter

EFI has reported record results during the third quarter of 2014, which has increased its confidence in achieving one billion dollars in revenue by the end of 2016.

EFI ‘confident’ of hitting billion dollar revenue target after record quarter

For the quarter ended September 30, 2014, EFI reported record revenue of 197.7 million USD, up 11 percent compared to third quarter 2013 revenue of 178.8 million USD. Non-GAAP operating income was 30.8 million USD compared to 22.8 million USD for the same period in 2013, and non-GAAP net income was 20.6 million USD compared to non-GAAP net income of 18.7 million USD for the same period in 2013.

GAAP operating income was down slightly at 12.9 million USD, compared to 13.9 million USD for the same period in last year, while GAAP net income was 4.8 million USD compared to 16.1 million USD over same the period 12 months earlier.

For the nine months ended September 30, 2014, EFI reported revenue of 579.3 million USD, up nine percent year-over-year, with non-GAAP operating income reaching 82.2 million USD compared to 68.6 million USD for the same period in 2013.

EFI set itself a one billion dollar revenue target for the 2016 financial year towards the end of 2013.

In announcing the 2013 third quarter results, EFI chief executive officer Guy Gecht said: ‘In the third quarter the EFI team raised the bar on execution with revenues growing 11 percent to all-time record levels, increasing our confidence in achieving one billion dollars in revenue by the end of 2016.

‘We remain sharply focused on that goal as we are helping more and more customers around the world become increasingly competitive and productive.’

In an earnings call discussing its latest financial results, as transcribed and available on the Seeking Alpha website, EFI chief financial officer David Reeder said that all three of the company’s segments had contributed to its record performance, with Industrial Inkjet generating revenue of 95.5 million USD, up 10 percent year-on-year and nearly half of EFI’s total revenue. Revenue in this segment was driven by strong growth in the VUTEk, Jetrion and UV ink product lines, with UV ink volumes themselves increasing 26 percent year-on-year

The Fiery segment also showed continued strength, with revenues up nine percent year-on-year to 68.6 million USD, representing 35 percent of total revenue. The Productivity Software segment delivered revenue growth of 18 percent year-on-year to 33.6 million USD, representing 17 percent of total company revenue.

‘To summarize,’ Reeder said, ‘all three business segments performed exceptionally well delivering record revenue in the face of significant currency headwind.

‘Revenue grew 11 percent, operating profit grew 36 percent and earnings per share grew 10 percent. We enter the fourth quarter with the continued benefit of a refreshed product portfolio and expansion opportunities and on pace to deliver to our 2016 one billion dollar revenue target.’

Gecht said: ‘2014 is shaping up to be another good year for EFI and with nine quarters to go we are increasingly confident in achieving one billion dollars in revenue by the end of 2016.’