Shares of Electronics for Imaging Inc. (EFII) were falling hard in premarket trading Wednesday after the company revised lower its fourth-quarter guidance.
The stock was down 17.7% to $22.37 a share by the close of trading on Wednesday.
Electronics for Imaging, a digital printing technology company, said revenue in the fourth quarter is now expected at $255 million to $257 million. The company had initially guided for fourth-quarter revenue of between $275 million to $285 million when it released its third-quarter results.
Adjusted earnings-per-share for the fourth quarter are now expected to be between 45 cents and 47 cents, down from the initial estimate of between 57 and 65 cents. Operating cash flow is now expected to be between $30 million and $33 million.
The company said in a press release it is being "impacted by weakening economic conditions experienced across its direct businesses, with customers delaying spend on capital equipment and software."
CEO Bill Muir said that "late in the quarter we began seeing a substantial shift in buying behavior versus the prior year in many of the industries we serve." He added, "This was felt most significantly in the Americas. Customers became increasingly concerned about economic trends and many decided to defer capital expenditures until they had greater clarity on the economic environment."