Revenues for the quarter ending 30 June 2009 came in at $US90 million ($A109m), compared with $US186m in Q2 2008, producing a GAAP net loss of $US13.3m, or 27 cents per diluted share.
EFI chief executive Guy Gecht said in a conference call that the main disappointment for the quarter was the delay in shipping its Vutek GS 3200. Despite strong initial orders, the intricate technology involved meant delays to the final calibration of some units of the $US600,000 printer.
“It is difficult to predict when this printer will be finalised for broad shipment and revenue recognition,” said Gecht. “While we are hoping it is a matter of a few weeks, at this point we will not take the risk of providing a specific date.”
However, Gecht said the inkjet business improved sequentially both in revenues and margin, and said that the company has plans to add six new Vutek products to its roster, including an entry-level product priced at $US70,000 and its first 5 metre device, which will be available in the fourth quarter.
The Jetrion division also performed well with greater than 50 per cent year-on-year growth.
The company also made a number of cost-cutting measures, reducing operating expenses by roughly 22 per cent, but this wasn’t enough to offset the slowdown elsewhere. In March this year, EFI closed its Sydney, London, Paris and Milan offices in a bid to reduce administration costs.
Sales of its Fiery engine were hit by a move towards lower-end products, while its applications division saw revenues up 7 per cent in the US, but 35 per cent down in Europe.
The Q2 figures also included the cost of streamlining the company’s ink manufacturing business, consolidating production of UV ink and outsourcing solvent ink to Nazdar.
Gecht added that problems for customers in accessing finance had also impacted the quarter’s results.
Shares in EFI were down 11 per cent on the Nasdaq at the time of writing to $US11.
Read the original article at www.printweek.com.
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