In response to the announcement of downbeat preliminary results for the fourth quarter, shares of Electronics for Imaging (NASDAQ:EFII), a company focused on digital printing technology, cratered 16% as of 11:05 a.m. EST on Wednesday.
Here's a look at the numbers that Electronics For Imaging (EFI) expects to report in the fourth quarter:
- Revenue is expected to land between $255 million and $257 million. For context, Wall Street was expecting $280.7 million in total revenue.
- Earnings per share are expected to be in the range of -$0.20 to breakeven.
- Non-GAAP earnings per share are expected to be $0.45 to $0.47. That's also well short of the $0.60 in non-GAAP EPS that market watchers were expecting.
Management blamed the poor results on "weakening economic conditions" in its direct businesses and delayed customer spending on capital equipment and software.
Bill Muir, EFI's CEO, stated, “Though we entered the quarter with a robust pipeline and our Inkjet sales progress through mid-December was tracking ahead of the prior year, the last few weeks of the quarter were exceptionally weak.”
CEO Muir stated that he was "very disappointed in the quarter" but that he remained upbeat about the company's market position and opportunity ahead.
He also reaffirmed that management remains committed to addressing the company's weak spots and intends to "deliver the results our customers, shareholders and employees deserve.”
EFI plans to share the full quarterly details with investors on Jan. 30 after the market closes. Investors will want to tune in to learn more about management's action plan to get the business back on track.