Electronics for Imaging ( EFII) raised its projections for second-quarter earnings, citing strong demand for its color-embedded products and improved gross margins.

"Our margins and profitability continue to increase as we move toward more of a software and design license-based business," said Guy Gecht, the company's chief executive, in a statement Wednesday.

The desktop-publishing software designer expects to earn 15 cents to 16 cents per share in the quarter ending June 30, excluding costs of amortization of intangibles related to acquisitions. The outlook was raised from the company's mid-April prediction for quarterly earnings of 14 cents per share.

Including amortization, the company expects to earn 13 cents or 14 cents per share for the quarter, up from 5 cents per share for the same quarter last year.

Shares of Electronics for Imaging were up 0.8%, or 16 cents, at $21.40 in morning trading on the Nasdaq.