Then, for which segment of our business, Fiery, Inkjet, and APPS, you will here from the General Manager about there forth, about the market, the competition, the growth rate. Why the growth we have seen in the last year is sustainable and what's the upsight in the business, beyond the continuity.But beyond having three both of those nice growth segment, a new look that you are going to see today is, how its all come together in front of customers and our claim is the value of EFI is more than the sum of the parts, because when a customer speak with an EFI, they see the entire portfolio more and more. So first, you are going to here from our CTO, Ghilad about how it’s all working together, or and a customer buy multiple products and we have more than that now. How does he get extra value from how – multiple products and how is that changing buying decisions going forward, and then ultimately Frank is going to talk about how his sales and marketing force are actually presenting EFI to customers, how they’re leveraging the unique unmatched portfolio when we go to market, and that’s normally something we don’t talk about on the conference call, we go segment by segment, but there is a lot of value in the combination of those segments that we put together as we touch on EFI. Each segment, each one of (inaudible) will take few questions from you guys and then I will take it out and Frank will then take questions about this section, we want to bring lunch then and then Vince is just going to over plan and talk about the long term model, how is that changing and if you look at the filing this morning we are restating the guidance, we feel good about our progress so far, so I will say right upfront and take a little bit from Vincent excitement, but more exciting comments from Vincent to come.
Now, we’ll take questions at the end and at 1’o clock we are going to go across the street to this building to one of the leading independent dealers in our space LDI, they sell equipment from multiple suppliers as well as the EFI products, you will see how they pitch to the market, how EFI product – sitting in what they do, I think we will give you a good insight, we talk a lot about the engine partners, but how customers see and where they go to buy as our partners do more and more indirect sales and they relying on people like LDI to get to the end users.So one slide on November 6, 2010 through today speak on; one, when we revealed last year we had few good quarters coming back from the recession, but the question on everybody’s mind including us was is this sustainable or is this just recovery from a really terrible ’09. Is this just the numbers compared it looks good, people will hold their buying decisions, I think we feel very comfortable to say this is sustainable. The strategy is working, but with the company we’ll put together as we confirm it in last few years. Is the right portfolio for that in the right segments of the printing industry to grow and with seven quarters of double-digits I think we answer at least that and we think there is more good news to come. The company is a lot more balanced and anytime in the history of EFI the areas that we got growing from the core business of the Fiery has 43% of recurring revenue and our goal is to continue to add to this. So and the balance is even within the segment and within geographies we are seeing more opportunities in emerging markets; we’re growing in emerging markets. We’re getting rely less on less single area, single market and that’s a pretty significant change if you look at the EFI a few years ago.
We are actually enjoying a very strong product momentum, the innovation path and everybody is going to talk about and Ghilad is going to put in picture one big picture for us. Really accelerated in last few years and we open a gap of innovation from the competition in every part of our business.The first, we say that because we’re passionate about what we do and with one investing but in the areas that we are investing we are the leader and we are the one that set the trend and we are opening a gap from the competition and we sell to professionals. That a very good and looking at what we sell compared to the competition and know how to evaluate very well. There is not a lot of stories you can tell when they can go to a Tradeshow and side by side bring the exact file EFI into equipment versus the competition. So we’re excited about the (inaudible) from each channel by where we are but I think that if there is top macros of this we hope that that help mitigate because customers when they buy, they like to buy the latest equipment, not the old equipment, especially if they feel that there’s a challenging environment, they want to have something that will be competitive for many years. So since you guys all like numbers, I’d like to compare a few numbers where we were last time to where we are today in a year. So we came in just after Q3 earnings announcement. The revenue was $129 million. Now we’re back a year later 14% more top line, we can argue to that even in the tougher environment than the year ago. So clearly, the momentum is going and what we’re doing is getting traction in the market.
Looking at the operating profit in dollars, a year ago, we reported about $11 million. This year, we reported $16.5 million, up 48%, the growth rate is very strong. We learn how to grow and continue to use leveraging our model. When I look at first call estimates, when we were here last year for 2011, keep in mind, we did not even issued Q1 guidance that time. It was $547 million for 2011. Now with three quarters actual and one outlook, one guidance 7% above what we expected a year ago, of course, when you look at EPS, the number is much bigger.So let's go with $0.88 a year ago, today the three quarter actual and one quarter to go it’s with the average in our range is about 23% above. So it’s not only numbers, we get recognition, I think this field was by far the largest field of getting recognition from the industry for our innovation. We talked to you in the conference call with GRAPH EXPO that independent group of judges give this innovation Must See ‘em, EFII received more award this year than any company in the history of this show. And as we were talking on the conference call we got product of the year award on our LED, VUTEk printers which Scott didn’t talk about. We continue to get a lot from our partner like Staples and we just got full very point certifications for (inaudible) matching for [envelope] first matching on the (inaudible). Now let’s talk about the industry. Since the day that Apple launched the iPad, I used one visual. Issac Newton, apple fell on the head, gravity, so I’m going to talk about the last deal. The apple that fell on the industry had the same emphasis, not exactly the same apple, but apple. The industry discovered gravity. Some pages I think (inaudible) those boarding cards, some of those spread sheets. This is an event on Vincent. He like to put a lot of numbers in one page, so I don’t if that’s going to go to be light, hopefully you cannot read, because you’re not suppose to see. Those have been to iPad. They are moving to iPad. The good news is it doesn’t impact infact business went out there, and the need to move to place where has a lot more value, but we’ve already though and they should need to perform to a much more profitable efficient business process automation, Mark is going to talk a lot about that.
So the business industry need to evolve, but every single business in our industry need to evolve, because if you stay as this, you’re not going to be in business and so you see customer saying hey what’s going, where is the value, what printing we can do and also our of the searching revenue for the aps business is because customer is saying I go to get my business. I can’t have that many people. I can’t have many of mistakes. If I do a redo of (inaudible), because I didn’t capture it correctly then I’m going to eat this margin. not going to be book to bill it's not as easy as it used to be.And it’s clear that the key thing the industry need is techonology, there’s no other, it's not about weather, it’s not about anything else other than technology. And we are a technology company as a center of that. So what’s the implication? Well, clearly, people looking for areas where print had more volume, we’ll talk about it packaging, out-of-home advertisement and things that not in our lifetime that will go on the iPod or I’d say electronics and we can give you example after example after example. On-demand personalized documents, people don't want to stock, you don't want it on the 10,000 run brochures, but you want to print when you go to a tradeshow, color brochure tied to the person that you point. When we see example of personalization everyday, EFI is bringing more and more, and focusing more and more personalized documents that connect with database. And the automation is a mandatory, the industry as a manufacturing industry is lagging so much behind other industries, but now it’s time to catch up, because we have no choice. All those implications are not and in this philosophy we predicted that, we escape to where it's going to be and the last seven quarters, I think we're seeing the benefits of that.
So you guys are familiar with slides, so I’d summarize within one slide, we believe that part of this personalization on-demand is digital printing. We want to lead the industry in the transformation, it’s happening in some segment of the industry it’s happening in a big way, three areas we’re focusing on as far as industry places for growth where printer is valued. It’s the short run business documents, Toby is going to talk a lot about that, signage, other form advertisement and growth area by sales, 70% is still bring the manual device tool, lot of room to grow, packaging is a gigantic market and packaging going to be printers in our lifetime and probably many years beyond that.And of course, part of this project, we want to help customers, it’s not just add value to print, being a lot more efficient, a lot more profitable and we do it with our business process automation out of the business. Why is this working? Well as I mentioned the only thing that can help the industry and every player in this industry, every site of the company is technology. They need technology to evolve to what their customers want. EFI is a fantastic technology play in this industry. But we’re much more than a technology play. We bring the Silicon Valley to this industry. We have build over the years a very strong business cadence, [rigor]. We have now Philippine daily reports. I can open my computer and I can see what was the revenue of each one of our line of business exactly in October, November for class fields. I can see the growth, I can see the OpEx and each one of our business and right now we’re looking at that. I’m not going to show you that, but we have a lot more visibility into print. We are doing monthly reviews, quarter reviews, we build a very strong (inaudible). And we do humbly believe we have the best team in the industry. We would see some of the people we normally don’t seen and he’ll know exactly what I meant to do.
So the team is a differentiator in our business, a team is a big factor, we continue to hire the best, in our industry a lot of people wants to work for EFI. That portfolio Ghilad and Frank will talk all about that becoming a rate differentiator. It’s helping customers and are now demanding it more and more we are seeing that the portfolio input buying decision, so Fiery for Inkjet specifically.And we are adding more recurrent revenue everyday even in the Fiery, its sounds that recurring revenue. We want to get sustainable growth, it’s very nice to start the quarter we have two of the three segments at 42% of the revenue committed guaranteed. So with that I want as Toby comments talk about all the existing things we are doing in the Fiery business. And I will come back at the end for Q&A. So thank you. Toby Weiss Good morning everyone, it’s great to be back here in New York. My name is Toby Weiss, I am the General Manager of EFI’s Fiery Division. And I have the pleasure of talking to you for the next 20, 25 minutes about the Fiery business. I understand there will be some new ways in a little bit as downstairs we have somewhat of a newsworthy IPO today. So I want to walk you through what is a Fiery. The Fiery addressable market, how we can grow the Fiery business, how we have been growing the Fiery business, why that is working? Why the growth is sustainable, and then some upside growth accelerators as well in the business and then something, at the end of the presentation I will take 10 minutes for questions and answers and then I will hand things over to our next General Manager Scott Schinlever to talk about our VUTEk, Inkjet business.
Well let’s start off with what is the Fiery and certainly everyone in print industry knows what a Fiery is, but for those people who aren’t in the print industry, Fiery controllers sometimes called DFEs digital front end is an appliance, is a software intensive, combination software and hardware appliance that derives high-end digital copiers, color printers, and digital presses, including of course EFI’s inkjet digital presses.It provides a high-speed data processing job management and color management as well as the a whole bunch of specialty applications and workflow tools. Why is this important, why high-speed data processing is important our high-speed data processing is important, because more and more customers are moving to short run and personalized print, actually brought a sample with me today, I apologize the people on the webcast are not going to be able to see it. But this is a postcard that kept mailed out, some of the pictures are some basketballs on the front and that flows from the audience. So to the basketballs actually have not the normal names of the basketballs on them, but this particular basketball has tended out to be a model family, this particular basketball to the Coporo family. So it's a personalized printer and of course, we address this personalized, the image is personalized, there is customized Coporo’s personalized do our role. So when you receive that postcard, it's obviously a lot more impactful with postcard your name on. It’s got especially URL, a QR code that’s almost in a click on and then on the back-end of course, someone can measure, Toby actually clicked on that code, I can hide into web marketing campaign, so on and so forth. Will this need to be a personalized short runs very data intensive computing intensive process. Printers, high-speed digital printers are in the 80, 90, 120 page per minute range. We have to be able to print two of those a second required some extraordinarily fast and efficient processing. Of course, you have to be able to do that with accurate color and if you’re printing out brochures, anything else for your customer, you want to make sure that when you hand them a 1000 brochures, they’re all identical colors. You also need to make sure its accurate color? Coca Cola is very particular about Coca Cola Red, Home Depot is very particular about Home Depot Orange.
So these are very, very important applications in fact, just yesterday, I was at a customer here in New York City with 800 designers all working on (inaudible) and all doing very sophisticated color matching between clothing that they sell in their retail stores of course, with the print. We want to make sure that color has been incredibly accurate, because if someone is going to go shopping for a purple shirt, you want to make sure that purple in your print is identical to the purple in the store.Read the rest of this transcript for free on seekingalpha.com