EFI CEO to resign

Guy Gecht, CEO of EFI, is stepping down from his role after leading the company for 19 years, while EFI has generated a revenue of US$500.9m for the first half of 2018, up five per cent year over year compared to US$475.7m for the same period the year before.

The company reported revenue of US$261.1m for Q2 2018, up six per cent compared to US$247m in the prior corresponding period.

Gecht will continue to serve as CEO until a successor is named and will remain on EFI’s board of directors afterwards. EFI says it has hired executive search firm Spencer Stuart to assist in the search.

Gecht says, “Stepping down as the leader of a great company is never an easy decision. With vast market opportunities, loyal customers and a robust product roadmap, reinforced by the unprecedented interest in Nozomi, EFI has never been better positioned for continued growth and success.

“I think this makes it the right time, after 19 years as CEO of this company, for me to hand the reins to the next leader. I will stay fully focused on leading the outstanding EFI team during the search period, and will assist in ensuring a smooth transition once the new CEO is in place. As a shareholder, board member and a lifelong fan, nothing will be more gratifying for me than to see my successor leading EFI to achieve its full potential.”

Gill Cogan, chairman of EFI’s board says, “We are grateful for Guy’s 19 years as CEO of EFI. Together with his team, Guy transformed EFI from a single product line and OEM business model to a diverse, worldwide leader driving the transition from analogue to on-demand digital imaging in industries that touch our lives every day.

“He led the expansion into productivity software and Industrial Inkjet, which drove EFI’s rapid growth to over US$1bn in annual revenues. Guy is only EFI’s third CEO in its 30-year history, which has brought a stability that the board truly appreciates. As a global company with industry-leading technology and products, there is an unmatched opportunity for a new CEO to lead the charge in the years ahead.”

[Related: Orora unveils Nozomi]

GAAP net income for Q2 2018 was US$3.8m compared to 2.8m in the pcp. Cash flow from operating activities was US$30.9m, up from US$24.1m for the same period the year before.

For the six months leading up to June 30, GAAP net income was US$0.2m, a drop from US$7.5m in the pcp. Cash flow from operating activities for the half was US$37.2m compared to US$39m in the pcp.

EFI has grown in the Apac region this year, generating a revenue of US$44.76m for the quarter, rising by 41 per cent from US$31.5m. For the half, it saw growth of 27 per cent, to US$79m from $62.2m.  Likewise, revenue rose in the Americas during the half, going to US$239.6m, up 7 per cent from US$223.9m, although it slipped for the Emea region, at US$182.18m for the six months, down four per cent from US$189.5m.  

Revenue for the Industrial Inkjet segment was at $156.4m for the quarter, up 10 per cent from US$141.6m. It also increased for the first half up to June 30, at US$298.64m, up 12 per cent from US$264.9m.

The productivity software sector grew by seven per cent to US$41.6m from US$39m for Q2, also rising by 15 per cent for the half to US$85.38m, from $74.1m in 2017.

Revenue for the Fiery workstation software dropped by 5 per cent in the quarter to $63m, down from US$66.2m in the pcp, while it made US$116.9m for the half, falling 15 per cent from US$136.6m the year before.

Gecht says, “This year continues to track well for EFI, with the team delivering record Q2 revenues and solid cash generation despite the significant impact of currency volatility during the quarter.

“I am especially pleased with the continued progress and increased sales pipeline for our Nozomi platform, validating EFI’s leadership role in the digital transformation of industries such as packaging and fashion, where colorful images matter.”

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