EFI recovering after plunge

Electronics for Imaging (EFI) is seeing some recovery after its stock price plunged by 45 per cent at the beginning of August.

It fell to US$26.05 from US$47.66 in a single day from August 3 over to 4. It has since improved to US$31.81.

The stock fall came after EFI postponed a conference call for its Q2 earnings in order to undertake an independent review of the company’s earnings.

EFI’s statement noted that: “The assessment is related to certain transactions where a customer signed a sales contract for one or more large format printers and was invoiced, and the printer(s) were stored at a third party in-transit warehouse prior to delivery to the end user.

“In addition, EFI is in the process of completing an assessment of the effectiveness of EFI's current and historical disclosure controls and internal control over financial reporting.  EFI expects to report a material weakness in internal control over financial reporting related to this matter.  EFI also expects to report that EFI's disclosure controls were not effective in prior periods.”

The company is yet to reveal when it will release its Q2 results, and has said it may be unable to file its Form 10-Q for the second quarter of 2017 on a timely basis.

The crash came as a shock, as EFI has enjoyed stellar growth through the past decade, recording revenue of almost US$1bn in the last financial year.

EFI is one of the primary players in the graphic arts market, as almost all digital printers from the Japanese manufacturers use EFI rips. It is a leading player in wide format, ceramic printing, fabric printing, is pioneering a move into digital packaging, dominates the MIS market, and has workflow and web-to-print software. It was founded by legendary Israeli innovator Efi Arazi, who was also the founder of Scitex, well known in the 1980s for its page make-up systems.

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