Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, has announced its results for the third quarter of 2009. For the quarter ended September 30, 2009, the Company reported revenues of $100.9 million, compared to third quarter 2008 revenue of $144.7 million.
GAAP net loss was $(12.2) million or $(0.25) per diluted share in the third quarter of 2009, compared to a GAAP net loss of $(3.6) million or $(0.07) per diluted share for the same period in 2008.
GAAP net income was $1.2 million or $0.02 per diluted share for the nine months ended September 30, 2009, compared to a GAAP net loss of $(8.9) million or $(0.17) per diluted share for the same period in 2008.
Non-GAAP net loss was $(2.6) million or $(0.05) per diluted share in the third quarter of 2009, compared to non-GAAP net income of $10.4 million or $0.20 per diluted share for the same period in 2008.
Non-GAAP net loss was $(13.1) million or $(0.26) per diluted share for the nine months ended September 30, 2009, compared to non-GAAP net income of $34.5 million or $0.61 per diluted share for the same period in 2008.
"We are pleased with the sequential revenue increases in all our lines of business, led by 22% growth in our inkjet business driven by several new inkjet product introductions," said Guy Gecht, CEO of EFI. "We will continue to bring industry-leading innovation to the market and expect our positive momentum to continue which combined with strict cost controls should result in our return to profitability in the current quarter."
Separately, the Company announced today that its Board of Directors has approved the use of the balance, in the amount of $70 million, of its previously authorized $100 million share repurchase program.
Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, today announced that its Board of Directors (the "Board") has approved the repurchase of up to $70 million worth of shares of its common stock through the use of a "modified Dutch auction" tender offer. This approval utilizes the balance of the previously authorized $100 million share repurchase program. EFI currently expects that it will commence the tender offer during the fourth quarter of 2009, at which time it will announce, among other things, the price range in which it will offer to purchase shares.
The tender offer will be financed from EFI's existing cash reserves. The funding of the $100 million share repurchase authorization represents the approximate after tax cash proceeds received from the sale of EFI's excess real estate holdings earlier this year.
"The decision by the Board and Management to immediately deploy the remaining balance of our $100 million repurchase program through a tender offer completes our goal of returning the cash generated from our real estate sale to our stockholders," said Guy Gecht, CEO of EFI. "We believe repurchasing our shares combined with bringing new innovative products to market will create value for our stockholders."
The tender offer announced in this press release has not yet commenced. This press release is for informational purposes only, and is not an offer to purchase or the solicitation of an offer to sell any shares of EFI common stock. The tender offer, if commenced, will be made solely by and subject to the terms and conditions set forth in the tender offer documents, including the Offer to Purchase and the Letter of Transmittal, that will be distributed to holders of EFI's common stock and filed with the Securities and Exchange Commission ("SEC"). Before any decision is made with respect to the tender offer, holders of EFI's common stock are urged to read the Schedule TO, including the Offer to Purchase, the Letter of Transmittal and other related materials when they become available and any other documents filed with the SEC because they will contain important information about the tender offer.
Holders of common stock will be able to obtain these documents as they become available free of charge at the SEC's website at www.sec.gov, or at the SEC's public reference room located at 100 F Street, N.E., Washington, DC 20549. In addition, holders of common stock may also request copies of the Schedule TO, the Offer to Purchase, the Letter of Transmittal and other related materials filed with the SEC free of charge by contacting EFI's information agent for the tender offer. The tender offer will not be made to, and tenders of EFI's common stock will not be accepted from or on behalf of holders, of EFI's common stock in any jurisdiction in which the making or acceptance of such tender offer is not permissible.
Sign & Digital UK 2010 will be held on 13 - 15 April at the NEC, Birmingham
Sign & Digital UK, co-located with Screenprint and The Digital Signage Showcase is the leading event for today''s vibrant UK visual communication industry. Spanning 3 days at the NEC, Birmingham, the exhibition attracts unprecedented levels of quality visitors from across the industry. The event offers a unique and unrivalled opportunity to keep pace with a huge range of the latest products and services, as well as the prospect of networking and meeting a broad mix of key industry buyers and decision makers.
With over 21 years experience, this exhibition has continually evolved to give visitors a true insight into the industry today and in the future, which is why it can boast to be the biggest, most visited and longest established visual communications event in the UK.
The '09 show was again a great success - here are some of the things that have been said about Sign & Digital UK 09:
Mike Lewis, sales and marketing coordinator – Hybrid Services/Mimaki: “So far the show has been absolutely fantastic. We have been busy from day one, have taken lots of orders already. We shall definitely be booking again!
Allan Ashman, Managing Director - Atech: “We were delighted when our first client walked on the stand and signed the order form for two products straight away.”
Brett Newman, Head of Product Development - Roland DG ( UK ): “We took orders from the very first day and I think within a couple of hours of the show opening, which is great! That’s obviously what we are here to do and because of the class of people coming through the door, they’re purposefully coming to make a purchasing decision here at the show. Will we be rebooking? Of course! We’ve done this show forever; it is as simple as that.”
Dean Carpenter, Director, Laserite: Sign & Digital UK has delivered to us a significant number of high quality leads, several of which have already turned into sales.”
Janice Fairfield - Fairfield Displays & Lighting Ltd: “The 2009 Sign & Digital show was well planned and has been a great success for us.We will definitely be back next year.”
Mark Dale, Director - PFS: “The interest we have had was on a more serious level than at any other show.”
Phil Kneale, Sales and Marketing Director - Graphtec (GB): Graphtec (GB)’s stand was kept busy all three days at Sign & Digital UK. It was our best Sign & Digital UK show in 10 years, despite the recession. Customers came with money in their pockets.
Amy Le Corney, marketing manager - Robert Horne Group: “We’ve so far sold a couple of laminators, and a couple of printers, and we’ve got some really good leads for some more hardware later on that we hope to close in the next couple of weeks. Sign & Digital UK is a key exhibition for Robert Horne, so we will definitely re-book for next year.”
Sarah Janes of Neschen: “The show has been lively, informative and above all busy.
"In the face of continuing tough market conditions we increased operating margin, reflecting the strength of our franchise businesses and the effectiveness of our operating model," said Dean A. Scarborough, president and chief executive officer of Avery Dennison. "The combination of fixed-cost reductions and increasing variable margins positions the Company for strong profit growth when markets improve."
"While the rate of volume decline in the third quarter improved compared with the first half of the year, this was largely due to a slowdown in inventory reductions," Scarborough said. "Our end-markets remain soft, and we continue to be cautious about the pace of their recovery."
"I want to note the excellent performance of our employees in such uncertain times," Scarborough said. "They have maintained their focus on serving our customers, operating our businesses, and laying the groundwork for the future. This has been hard work, and they've done a tremendous job."
For more details on the Company's results for the quarter, see the Company's supplemental presentation materials, "Third Quarter 2009 Financial Review and Analysis," posted at the Company's Web site at www.investors.averydennison.com, and furnished under Form 8-K with the SEC.
Third Quarter, 2009 Results by Segment All references to sales reflect comparisons on an organic basis, which exclude the impact of acquisitions and foreign currency translation. All references to operating margin exclude the impact of restructuring, asset impairment charges, lease cancellation costs, and other items.
Pressure-sensitive Materials (PSM) * Roll Materials sales declined, reflecting weakness in end-markets. Sales continued to decline in the more economically sensitive Graphics and Reflective Products division. * Operating margin increased as productivity offset the impact of reduced fixed-cost leverage, while the effects of pricing and raw material trends continued to cover the cumulative impact of 2008 inflation.
Retail Information Services (RIS) * The decline in sales primarily reflected reduced demand for apparel in the U.S. and in Europe, and caution on the part of retailers. * The decline in operating margin reflected reduced fixed-cost leverage, pricing, and other factors that more than offset the benefit of restructuring and productivity actions. * The Company is continuing initiatives to reduce fixed costs in light of current market conditions, while introducing new products and improving value-added services to increase its share of this large market.
Office and Consumer Products (OCP) * The decline in sales reflected weak end-market demand, led by slower corporate purchase activity. The sales decline was partially offset by strong back-to-school sales, due in part to expanded distribution and consumer trade-up to more durable binders. * Operating margin declined as the benefit of productivity actions was more than offset by the impact of reduced fixed-cost leverage.
Other specialty converting businesses * The decline in sales is primarily attributable to lower volume of products sold to the housing and construction industries. * The increase in operating margin reflected restructuring and productivity improvements that more than offset reduced fixed-cost leverage.
Consolidated Items and Actions * In the fourth quarter of 2008, the Company began a restructuring program expected to reduce costs across all segments of the business. The Company is targeting $160 million in annualized savings by mid-2010 (estimating $75 million benefit, net of transition costs, in 2009). The Company estimates that it will incur approximately $130 million of total restructuring charges associated with these actions, with approximately $110 million to be incurred in 2009. In addition to the savings from these new actions, the Company expects approximately $40 million of carryover savings in the year from previously implemented actions.
At the end of the third quarter of 2009, the Company achieved run-rate savings representing approximately 70 percent of its restructuring target.
* The effective tax rate in the third quarter was negative 7 percent, while the adjusted tax rate was positive 7.5 percent. The effective and adjusted tax rates for the full year are expected to be in the low single-digits and low double-digits, respectively. The ongoing annual tax rate is expected to be in the low 20 percent range, varying significantly from quarter to quarter.
More than 35 Chinese manufacturers and suppliers have already confirmed their stand bookings at Ipex 2010, adding more than 1,600 sqm of floor space to the international event which will take place from 18th – 25th May 2010 at the NEC in Birmingham, UK.
Comments Trevor Crawford, Ipex 2010 Events Director, “For many Chinese manufacturers, Ipex 2010 will mark their second or third show which demonstrates the overall growth of their international graphic arts offerings and highlights the importance of Ipex as the number one global graphic arts exhibition in 2010. Equally, a number of Chinese suppliers less well known internationally will use Ipex as a global launch pad. We’ve already exceeded the number of exhibitors from China that participated in 2006, having currently 30 companies contracted compared to 27 in 2006. Demand remains high and we expect the overall numbers of exhibitors from this region to significantly rocket in 2010.”
Of all Chinese manufacturers confirmed so far, joint venture companies Shanghai Electric (Group) Corporation (SEC) & Goss International Corporation have secured the biggest footprint with 1,000 square metres of floor space. They will use Ipex’s international role to promote the merged business.
Shanghai Electric Printing and Packaging Equipment Manufacturing (SPPM) Group's Chairman Mr. Chen Da Xiong says, "As an important business unit of Shanghai Electric Group, SPPM has become an international leading supplier to the sheetfed, web offset and packaging printing sectors. We’ve attended several Ipex shows in previous years and are extremely pleased with the ROI achieved. Ipex 2010 is the ideal platform for us to showcase our strong capabilities and demonstrate our growing product portfolio and differentiating technologies to the international graphic arts community.”
Ipex Organisers are working in close partnership with PEIAC, the Printing and Printing Equipment Industries Association of China, to help exhibitors maximise their participation at the show. Comments Wang Demao, Vice Chariman Executive of PEIAC: “As organisers of two international exhibitions, China Print and Print China, we understand the tremendous contribution to the development of global printing industries made by Ipex over the years. That’s why we are lending our support once again to Ipex 2010 by organising for Chinese companies to exhibit their products at the show. We estimate that the total Chinese exhibition area will reach 2000 square metres.”
Other leading Chinese major players already confirmed and allocated on the floorplan include post-press manufacturer JMD Machinery Corporation Ltd with almost 170 square metres, as well as printing, packaging and consumables suppliers UP Group with 135 square metres. Others include Shanghai Eureka Machinery, Shanghai Hongjing Printing and Packaging Machinery, The Second Film Factory of Lucky Group, Shanghai PrintYoung, Chengdu Xingraphics, Zhejing Zhengrun Machinery and Zhejiang Konita New Materials to name but a few.
Hou Kang, the marketing manager of Longma Aluminium Group of China, which has secured over 40 square metres of floor space at Ipex says that, “Ipex 2010 plays an important part in the company’s export strategy because of its international reach.”
Zhejiang Zhengrun Machinery Co. Ltd will be exhibiting at Ipex 2010 for the first time. Deputy general manager, Wu Yingyi has booked a 60 square metre stand at Ipex. He comments: “Ipex has a wide influence in the global graphic arts world. As a prosperous Chinese company we’ve stepped outside our home borders and today successfully export to 30 other countries. Ipex offers the ideal opportunity to expand our business and relationships even further.”
Pre-registration for all those wishing to attend Ipex 2010 is now officially available via www.ipex.org/register and will result in a £30 saving off the entrance fee. The immediate wave of registrations has been very encouraging and is tracking ahead of the 2006 cycle. So far, registrations have been received from over 80 countries, reinforcing the importance of Ipex on a global scale. The show organisers have confirmed that there will be free fast-track entry for all pre-registered visitors.
As it continues to build its international community, FESPA announces the addition of the Mexican association Amerografics to its member base, only weeks after the Sri Lanka Association of Printers and the Nepal Printers Association join as FESPA associate members.
As an associate member, the members of Amerografics will benefit from a variety of FESPA educational resources and training initiatives, as well as participating in a growing number of international projects and events, including research studies, conferences, industry summits and exhibitions. FESPA will benefit by forging stronger links with Mexican, and wider Latin American, printing professionals.
FESPA’s firm commitment to Mexican printers is clear from the events that it runs in the country. The organisation held its first successful sign, screenprinting and digital imaging exhibition in the country last August, which was followed by a second FESPA Mexico 2009 event. Attracting over 8,500 visitors to both exhibitions, FESPA Mexico has been established as the region’s leading trade show. In July 2009, FESPA also held its inaugural FESPA Summit in Mexico. With over 70 delegates, which included printers and suppliers, the one-day summit in Mexico City comprised presentations and workshops on topics including the economic outlook in Mexico, environmental considerations with the introduction of a new law about printing on recyclable materials, and current and future technological developments.
Founded in December 2008, Amerografics currently consists of screen, signage, digital and textile printers. With an office located in the District Federal of Mexico and another in Guadalajara, the association undertakes a wide range of activities on behalf of its members. Its aim is to strategically manage activities to improve the relationship between manufacturers and suppliers with the print community, as well as promote the exchange of knowledge and information amongst industry peers. Amerografics organises various events in Latin America to strengthen links in the community and offer educational training on topics, such as innovative printing. It is active in encouraging social responsibility and planet-friendly practices. It seeks to support and develop the printing industry by engaging in open dialogue with relevant political authorities, in addition to representing the rights and interests of members, both nationally and internationally, before governmental bodies. It has already established relations with The Secretary of Economy and the Federal Electoral Institute (IFE) that presented at the Mexico Summit in July.
Mr. Francesco Brocchi, President of Amerografics says: “We are thrilled to be part of FESPA’s global community. FESPA played an integral part in founding Amerografics, recognising the strong need to bring together Mexican printers to support them, as well as developing the industry at both a national and global level. Being a member of FESPA enables us to offer our members additional support with a wider range of educational and training resources, and access to a number of services that FESPA provides, including its world-class summits and exhibitions.”
Nigel Steffens, CEO of FESPA, comments: “We are delighted that Amerografics has become a member of FESPA. The Mexican printers that we meet are highly engaged, motivated and ready to proactively pursue market opportunities. We see FESPA playing a key role in the positive development of the printing industry in Mexico and more widely in Latin America. We’re confident that our partnership with Amerografics will be mutually beneficial and look forward to collaborating with these new members in the coming months.”
Large Format Review provides daily breaking news on digital printer technology as used for commercial production of print for wide-format sign and display, dye-sublimation textile and fabric printing, packaging and industrial applications. We also cover 3D print and additive manufacturing.