EFI reports record third quarter revenue; on course for a billion dollar revenue for the year

For the quarter ended September 30 2016, the company reported record third quarter revenue of 245.6 million dollars, up 7% compared to third quarter 2015 revenue of 228.7 million dollars. For the nine months ended September 30 2016, the company reported revenue of 725.4 million dollars, up 16% year-over-year compared to 626.0 million dollars for the same period in 2015.

“Our balanced business model was again the story in the third quarter. We are delighted with the strong organic growth in our industrial inkjet and productivity software segments, coupled with a rebound in cash from operations,” said Guy Gecht, CEO of EFI.

“We are entering the home stretch of 2016 with a robust pipeline of opportunities to partner with customers around the world in transforming and growing their businesses,” he added.

The business reported industrial inkjet revenue of 143 million dollars, up 17% year-on-year, productivity software revenue of 40 million dollars, up 25% year-on-year, and Fiery revenue of 63 million dollars, down 15% year-on-year. The Fiery drop was attributed to one unspecified partner.

“We went into the quarter expecting product delays from a couple of partners and deferred buying decisions as customers wait for some of the new engines they saw at Drupa. Even with these issues, all but one of our partners came in largely flat with third quarter 2015,” said Gecht.

EFI now requires fourth quarter sales of at least 274.6 million dollars to hit its 1 billion dollar target. In fourth quarter last year it recorded sales of 256.5 million dollars.

“The Fiery shortfall in the second half will make it challenging to achieve the 1 billion dollar revenue targets. We’ll push hard to pass this milestone despite all the challenges. If we achieve the high end of the fourth quarter guidance we will successfully hit 1 billion dollar in revenue,” said Gecht.