Electronics For Imaging plunges on lowered expectations
Electronics For Imaging, Inc. (Nasdaq: EFII) shares are spiraling downward after the printer and print supply firm announced that its fourth-quarter results will be lower than analysts’ expectations. The Foster City, Calif.-based company said its fourth-quarter revenue was damaged by weak server demand and higher-than-anticipated operating expenses of about $72 million.
“We are very disappointed with the results of our Fiery segment, which were weak across all our OEM partners. We are implementing significant steps to align our spending with this lower revenue and will take a restructuring charge in Q1 to reflect our reduced cost structure,” CEO Guy Gecht said in a statement. “While it will take some time, we are committed to taking the necessary steps to regain our traditional levels of profitability and growth.”
The company projects fourth-quarter earnings in the range of $0.22 to $0.24 per share on revenue of approximately $152 million. Wall Street analysts, on average, expect earnings of $0.37 per share on $163.1 million in revenue.
In afternoon trading, EFII shares are plunging 32.24%, or $6.18, at $12.99. Over the last 52 weeks, shares have ranged from $12.35 to $30.20.
