30 May 2020

EFI closes acquisition of Radius Solutions

Efi

Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, today announced that it closed its previously announced acquisition of Radius Solutions, a leading provider of Print MIS solutions for the packaging industry.

Also as previously indicated, Radius Solutions will become part of the Advanced Professional Print Software (APPS) division of EFI. EFI intends to integrate a number of its award winning products including Fiery, VUTEk, Jetrion, Digital StoreFront, PrintFlow and Auto-Count, with the Radius product line. The Radius acquisition further strengthens EFI's growing product portfolio of software tools, UV Inkjet digital presses and inks, and MIS solutions for the packaging market.

Graphic Printing Technologies is Acquired by Amari Plastics plc

Gpt Logo

After just over two years of trading, which have already seen it become one of the UK’s leading wide format printing solutions providers, Graphic Printing Technologies (GPT) has announced its acquisition by Amari Plastics plc. The move gives GPT the commercial backing it needs to meet the next key phase of its business strategy, allowing it to expand its physical presence and market coverage.

Plans are already in place for GPT to move into a new and larger building, which will offer increased office and warehouse space, as well as boasting one of the UK’s largest and most advanced product showroom and demonstration facilities. GPT will also benefit from working with Amari Plastics’ established business management and administration systems.

Stuart Cole, General Manager of GPT, comments, “The key message to our customers, suppliers and the market in general is that this acquisition will allow us to not only maintain, but improve on the core principles of our business. GPT will still be in control of its own destiny and we will continue to provide the unrivalled service and support that has helped us grow to the position that made us attractive to Amari. The only real difference is that we now have the backing of a multi-national corporation, which means we will have much greater influence in the industry, particularly in terms of financial strength and business security.”

Robin Howard, Chief Finance Officer of Amari Plastics plc, comments, “GPT is an excellent acquisition for Amari Plastics and one that sits very neatly within our company portfolio. In a very short period, the company has grown to become a key player in the industry and have demonstrated exactly the sort of business acumen and approach we want to bring into our corporation. We will support GPT in its ongoing business objectives and fully expect the relationship to be hugely beneficial both in terms of profitability and market presence.”

The acquisition took place on Friday 2nd July and is effective immediately. Graphic Printing Technologies will trade under the same name, but as part of Amari Plastics plc, not as a limited company. Until the move to new premises, all phone numbers, contacts and emails will remain the same.

Stuart Cole concludes, “It was always our intention to build a business that would catch the attention of acquisitive organisations like Amari Plastics. My only real surprise is that it has come as soon as it has. However, this is very much due to the better than expected performance we have achieved in the market, despite operating through one of the worst recession in living memory. We have all worked really hard to achieve what we have so far and are very much looking forward to taking GPT on to the brand new levels that it was simply not possible to achieve on our own.”

Océ reports improved results

Oce Logo

Highlights second quarter:

  • Total revenues stable at € 676 million
  • Normalised operating income € 20 million (2009: - € 12 million)
  • Normalised net income € 7 million (2009: - € 14 million)
  • One-off items of € 103 million impacted net income
  • Net income - € 96 million

 

Comments by Rokus van Iperen, Chairman of the Board of Executive Directors:

"Customers continued to be cost conscious amidst ongoing economic uncertainty, especially in North America and Europe. Nevertheless certain markets showed clear signs of recovery, particularly Asia as well as the graphic arts market.

Océ realized revenues of € 676 million, exactly the same amount as last year. We significantly increased our EBIT, excluding certain Canon related one-off items. This improvement reflected the better utilization of the supply centers as well as our action program related to approximately 2000 job reductions in 2009 and 2010.

As already anticipated in the first quarter earnings release, Océ absorbed substantial one-off items in the second quarter, following completion of the offer by Canon. These one-off items amounted to € 103 million on reported net income and €48 million on free cash flow.

The second quarter was marked by the successful completion of the transaction with Canon on 9 March 2010. In the second half of 2010, our compelling combination is expected to show the first commercial results via cross-selling of Canon products in Océ channels and vice versa."

Combination Canon and Océ

The priorities for 2010 regarding the combination Canon and Océ encompass the growth through cross-selling opportunities, the co-operation in technology and product development and the preparation of the next steps in integration.

In the second quarter Océ prepared the introduction of Canon hardware and software products. Océ is training sales and service forces on Canon products and is preparing marketing plans and distribution.

For the Wide Format business, a joint project has started to determine the cross sales opportunities in which both Canon and Océ can deliver a stronger portfolio of Wide Format products to their respective customers. Canon will also sell selected Océ high volume products in certain of their markets and channels.

As a first result of the product development cooperation Océ showed at the IPEX 2010 fair the Canon imagePRESS C7000 connected to Océ PRISMAprepare prepress software. Reactions on IPEX from customers, industry analysts and press on the new combination were very positive.

Océ Group results second quarter 2010

Following the completion of the offer by Canon, Océ anticipated substantial one-off items. The next paragraph contains a detailed explanation of these one-off items. This paragraph provides an overview excluding these one-off items.

Revenues

  • Total revenues in the second quarter amounted to € 676 million, in line with 2009. The organic decrease was 2% compared to the second quarter of 2009.
  • Our share of color continues to grow and now accounts for 33% of revenues, up from 30% in the same period last year.
  • Non-recurring revenues amounted to € 189 million, an increase of 2%. The organic decline was 1%.
  • Recurring revenues amounted to € 487 million, a decrease of 1%. The organic decrease was 2%.

Savings program

Our action program continued and was almost fully implemented. The increase of the normalized operating income was partly the result of the cost savings program. In the second quarter Océ realized a cost reduction of € 26 million, exclusive of inflation and restructuring cost. Year to date Océ also realized a headcount reduction of 460 FTEs compared to the fourth quarter of 2009 (first quarter 310 FTEs, second quarter: 150 FTEs).

Gross margin and operating income

In the second quarter of 2010 normalized gross margin, excluding normalization items, was 38.4% (2009: 35.4%). The increase was the result of several factors. Compared to the second quarter of 2009 the changes in currency exchange rates caused a positive hedge variance of € 3.1 million, leading to a gross margin increase of 0.4% point. The gross margin increase for DDS and WFPS in total amounted to 2.5% points. The increase was mainly due to the better utilization of the supply centers in Venlo and Poing and the aforementioned savings program.

Normalized operating expenses amounted to 35.4% (2009: 37.2%), thanks to the savings program. In constant currencies operating expenses declined by € 16 million. Compared to the second quarter of 2009, this includes a € 3 million release as a result of final settlement of share-based compensation. Net R&D capitalization amounted to € 11 million which is € 5 million lower compared to the second quarter of 2009 (€ 16 million).

On balance, normalized operating income amounted to € 20 million (2009: – € 12 million).

Operating income amounted to € 20 million (2009: – € 12 million).

Finance expenses and net income

Finance expenses (net) amounted to € 7 million (2009: € 7 million). As a result of the refinancing of Océ's debt by Canon, the finance expenses decreased compared to last year. In the second quarter this decrease was fully offset by foreign exchange effects.

On balance, net income was € 7 million (2009: – € 14 million).

Earnings per ordinary share for net income attributable to shareholders was € 0.07 (2009: – € 0.18).

Balance sheet and RoCE

The balance sheet total was € 2,336 million, compared to € 2,465 million at the end of the second quarter of 2009. Net Capital Employed was € 1,175 million, compared to € 1,218 million at the end of the second quarter of 2009. In relation to normalized operating income, RoCE amounted to 3.3% (2009: 3.5%).

The aforementioned balance sheet and Net Capital Employed amounts include the Canon related oneoff items.

Free cash flow

Free cash flow in the second quarter decreased to – € 12 million (2009: € 17 million), due to lower free cash flow from inventories and trade and other receivables, which was partly compensated by higher free cash flow from creditors.

The cash flow from investing activities was – € 22 million (2009: – € 27 million).

One-off items

As already announced in the first quarter earnings release disclosed on 2 April 2010, Océ anticipated substantial one-off items in the second quarter as a consequence of the change of control following completion of the offer by Canon on 9 March 2010. The table above provides an overview of the one-off items in the second quarter income statement.

The gross margin includes a total of € 16 million one-off costs following Océ's decision to depreciate tooling and inventories due to changes in the product portfolio from certain OEM suppliers to Canon.

The one-offs recorded under operating expenses amounted in total to € 27 million due to the fact that Océ impaired intangible assets related to supply contracts with certain OEM suppliers as well as to the future harmonization of Océ IT systems with Canon. Additionally, Océ incurred advisory fees related to the Canon transaction.

Océ, through Canon Inc., has refinanced both the multicurrency revolving credit facilities and the United States Private Placements.

The total one-off finance expenses related to the refinancing amount to € 40 million. The refinancing by Canon does not include financial covenants or commitment fees and is at more favourable interest margins than the aforementioned facilities. The positive effect from the refinancing is not included in the abovementioned one-off items and will be visible in finance expenses from the third quarter onwards.

The income tax effect of in total € 20 million results from the abovementioned items and from changes in the valuation of tax assets and liabilities. For example, as a consequence of the change of control, some of the tax assets in Germany and the United States were (partially) forfeited due to local tax laws.

For the second quarter the total effect of one-off items on reported net income amounted to –€ 103 million resulting in a cash flow effect of in total –€ 48 million.

In the second quarter the cash flow effect from the one-off items related mainly to finance expenses as a result of the refinancing. These expenses were recorded in cash flow from operating activities such as changes in trade and other liabilities and interest paid.

SBUs results second quarter

This paragraph provides an overview of the development in the Strategic Business Units, excluding the Canon related one-off items described in the previous paragraph.

Digital Document Systems (DDS)

Revenues in DDS amounted to € 374 million. Organically, revenues declined by 3%. The share of color increased to 28% of revenues (2009: 25%) driven by Océ's production color continuous feed systems. Based on 2009 product placement data Océ led in this segment with a market share of 26% including inkjet and toner-based technologies, in the US and Western Europe. In the first half of 2010 Océ received a significant number of orders in this segment, also for its newest product, the Océ JetStream 1000. The Océ JetStream 1000 is perfectly suited for transaction, direct mail, TransPromo, digital book and manual printing and produces 1010 A4 duplex pages per minute.

Non-recurring revenues amounted to € 122 million. Organically, revenues declined by 4%.

Recurring revenues amounted to € 252 million. Organically, revenues declined by 3%. The market deterioration resulted in lower print volumes and subsequently lower revenues in Office and black & white continuous feed. DDS grew its revenues in production cutsheet and continuous feed color.

Normalized operating income amounted to € 3 million (2009: – € 18 million). EBIT improvement was realized thanks to cost savings and better utilization in the Venlo and Poing supply centers.

Wide Format Printing Systems (WFPS)

Compared to the second quarter of 2009 the WFPS revenues showed recovery. This was mainly driven by revenue development of Technical Document Systems in the United States and Asia. Although the non-recurring revenues showed recovery, the recurring revenues were still lagging behind due to decreasing volumes and price pressure.

Revenues in WFPS amounted to € 185 million. Organically, revenues were in line with the prior year. The share of color increased to 47% (2009: 45%) for example as result of the newly-introduced Océ ColorWave 300 and Océ CS2400 color systems for the Technical Documentation market. To further strengthen its color portfolio for the wide format Graphics Art market, Océ launched in June the high-speed Océ Arizona 550 XT flatbed printer which has double the speed of the Océ Arizona 350 XT system.

Non-recurring revenues amounted to € 67 million. Organically, revenues increased by 7%

Recurring revenues amounted to € 118 million. Organically, recurring revenues declined by 3%.

Normalized operating income was € 12 million (2009: € 2 million) thanks to cost savings and better utilization of the Venlo supply center.

Océ Business Services (OBS)

Revenues in OBS amounted to € 117 million. Organically, revenues decreased by 2%. Revenue growth in Europe continued. The United States is facing a decline in the traditional Mail business, which could only partly be compensated through growth in new services.

Normalized operating income amounted to € 5 million (2009: € 4 million). The improvement in operating income is the result of improving gross margin and tight operational expense management.

Outlook

In 2010 customers are anticipated to remain cost conscious amidst ongoing economic uncertainty. Nevertheless, customers are expected to invest in systems and services that directly add value to their business. Therefore Océ will continue to introduce innovations for all market segments.

Canon and Océ will continue to work towards creating the best combination in the printing industry. The priorities for 2010 remain unchanged and encompass the growth through cross-selling opportunities, the co-operation in technology and product development and the preparation of the next steps in integration. In the second half of 2010, we expect the first commercial results via cross-selling of Canon products in Océ channels and vice versa.

Océ anticipated substantial one-off items following completion of the offer by Canon. The largest part of these one-off items is included in this second quarter earnings release.

 

Inca Digital celebrates 10 years of breaking inkjet records

Inca Dr Linda Bell

In 2000 Inca was formed and launched the world’s first UV digital flatbed printer. Ten years later the company looks forward to the next decade

“The future for Inca Digital is very exciting,” says Dr Linda Bell, CEO, as the company celebrates its 10th birthday. “Since 2000, when we launched the world’s first flat-bed wide-format UV inkjet printer, we have consistently developed ground-breaking and record-breaking printers. That pioneering spirit is still very much at our core and continues to drive our programme of inkjet innovation.”

Over the last 10 years Inca has developed a range of market-leading printers, and many of the early models are still in operation today. The first Inca Eagle machine was launched in 2000 and the high-speed Turbo in 2004, setting a new speed benchmark. The Spyder 320 was launched a year later, and in 2007 Inca created a step change with the revolutionary Onset: the world’s fastest digital UV flatbed printer capable of production speeds up to 750 sqm/hr equivalent to 155+ full bed sheets an hour. In 2009, this was followed by the Onset S20. The Onsets broke the speed barrier and their ability to produce quality volume graphics quickly and cost-effectively have transformed production environments and users businesses around the world; their impact has become known as the ‘Onset Effect’.

The company has grown significantly since 2000 and today an estimated 21 million square metres of material is printed on Inca printers around the world every year.

Looking to the future, Dr Bell says: “We are in great shape and the next 10 years will see a new phase in the company’s growth as we continue to move up the curve. We will keep pushing the boundaries of speed and performance of our equipment and work even more closely with our customers to add value, and help them to widen their capabilities and competitiveness. Corporately, we are investing to expand our skills into a broader range of markets by exploring new applications for Inca inkjet and we will continue to develop our international presence and infra-structure.”

Ken Kisner Named President of INX Digital.

 

Ken Kisner Inx

Ken Kisner has been named President of INX Digital International Co. The announcement was made today by Rick Clendenning, INX Digital CEO, and Dr. Kotaro Morita, INX Digital Chairman, after a recent Board meeting in Europe. Mr. Kisner, 42, has more than 20 years expertise in the digital imaging market and will now serve as President, Chief Operating Officer and Chief Technology Officer.

“Ken, who most recently served as President of INX Digital Americas and has demonstrated tremendous leadership for a long time, is the right choice for President of our global resources and organization,” Clendenning said. “He understands the aspects of our business and did an excellent job in helping us bring together all of the companies that comprise INX Digital over the last couple of years. Under Ken’s direction, INX Digital is well prepared for today’s business environment and our future growth expectations.”

INX Digital International and INX International Ink now represent the combined digital resources of their parent company, Sakata INX of Japan, and operate facilities in the United States, China and Europe. INX Digital International manufactures and distributes inkjet inks and toners for a variety of industrial markets. The company is well known for its Graphic Arts products used for billboards, banners, vehicle and building wraps and other large format output. Several new lines of products include dry and liquid toner, and a variety of customized industrial inkjet inks including textile products and UV curable technologies.

“I’m deeply honored and look forward to the challenges ahead of us. This is an exciting time to be involved with digital printing, and we are well positioned to help drive new technologies into regional markets with our strategic manufacturing locations in the U.S., Czech Republic, China and India,” said Kisner. He is a member of NAPIM, the Specialty Graphics Imaging Association, Print Industry Networking Group, Digital Printing and Inkjet Printing Professionals.

INX Digital International Co. is a leading global manufacturer of inkjet inks for wide format, super-wide and new generation digital printers, and a supplier of printing parts and related services. As the digital arm of INX International Ink Co., it offers a full palette of digital ink systems, advanced technologies and integrated services including chemistry, hardware and software, engineering design, and integration and media. For more information, visit the Web site at www.INXdigital.com .

 

Avery Dennison Redefines its Role in the Graphics Marketplace

Avery Dennison Logo

‘We have redefined our role in the graphics marketplace’, says Jelle Kroes, General Manager, Avery Dennison Graphics and Reflective Products Europe, speaking from the FESPA 2010 exhibition in Munich, Germany.   ‘As global providers of large-format graphic solutions at all levels of the visual communications industry, we are today actively engaged in a dialogue with our end users – the brand owners, retailers, corporate identity and design consultancies, and architects.    That dialogue is aimed at establishing how best we can serve their needs in terms of application solutions.   It’s also  – of course – aimed at ensuring that the distributors and converters with whom we have an established, and valued, partnership  can meet those needs appropriately.   The strength of a global company is that it can, in the old terminology, think and act globally – but source expert local implementation.’

Market dynamics

Mr Kroes continues:  ‘Self-adhesive films have a major contribution to make in today’s signage and visual communications market.   They represent between five and ten per cent of the overall European market for all kinds of graphic media:  over €1 billion.   And usage is still increasing, thanks to new and emerging applications like vehicle wrapping.

Driving the market:  the end users

Avery Dennison is convinced that, today, the decision makers in terms of graphic solutions are, indeed, the end users.   Says Frank Jonker, Manager, Product Marketing, for Avery Dennison Graphics and Reflective Products Europe:   ‘A company that wants to use its corporate identity across a variety of media – from buildings and commercial vehicles to promotional billboards and window graphics – is – rightly – only interested in theconsistency and appearance of their brand image.   It’s got to perfectly match the corporate image (and colours), and perform to durability specifications.    With our distributors and our open and extensive network of first-class converters, distributors, and graphics applicators in Europe and around the globe, we are very well placed to exceed  those end-user needs.’

Initiatives at all levels

Avery Dennison is actively developing a portfolio of user services tareting  converters and graphics applicators.   Says Frank Jonker:  ‘This reflects our understanding of the growing importance of partnerships thoughout the supply chain for delivering the best possible outcome for the end user.    In parallel, we are today involved in creating ‘live’ communication with end users in key target segments to enhance awareness of the enormous possibilities with self-adhesive films, so we can continue to grow the overall market.   Central to this strategy are ‘discovery meetings’ with end users, design agencies and corporate identity consultancies around the globe to identify unmet needs – and inspire innovation.’

Summing up, Mr Kroes concludes:  ‘Our new strategy empowers the concept of our stand at FESPA 2010.   Major international industry showcases like FESPA have a key rôle to play in developing that strategy.  They can be key enablers in developing partnerships throughout the value chain.’