Electronics For Imaging (EFI), a world leader in customer-focused digital printing innovation, is postponing the conference call at which it anticipated discussing second quarter 2017 preliminary financial results “in order to enable the company to complete an assessment of the timing of recognition of revenue. 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 its 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 added that it expects that the total aggregate revenue for the periods under review will not be materially different from the aggregate revenue that was previously reported for those periods, “taking into account any revenue from the prior periods that might be moved into the current or upcoming periods.” The Audit Committee of EFI’s Board of Directors is conducting an independent review related to the matter and has retained independent professionals to assist in that review. A subsequent press release will be issued announcing a new date and time for the distribution of earnings information for the second quarter of 2017. Also, EFI may be unable to file its Form 10-Q for the second quarter of 2017 on a timely basis. Market response was swift, with the stock losing 45% last Friday. The stock closed at $26.05, down from $47.66.
EFI postpones conference call and delays release of Q2 financial results as its stock plunges
