Electronics For Imaging, Inc. (EFII) Q1 2012 Earnings Call April 19, 2012 05:00 pm ET Executives JoAnn Horne - IR Guy Gecht - CEO Vincent Pilette - CFO Analysts Ananda Baruah - Brean Murray Shannon Cross - Cross Research Keith Bachman - BMO Capital Market Morris Ajzenman - Griffin Securities Presentation Operator
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In addition, reference will be made to non-GAAP financial measures. Information regarding the reconciliation of the non-GAAP and GAAP measures can be found in the press release that was issued this afternoon on our website at the IR section at www.efi.com. There are also slides available that correspond to today’s comments.I’ll now turn the call over to Guy Gecht. Guy? Guy Gecht Thank you, JoAnn. Good afternoon and thank you for joining us today. Our string of record quarterly achievements continued in Q1. At $160 million in revenues Q1 marked our best March quarter ever and EFI's ninth consecutive quarter of double-digit revenue growth. Our Productivity Software and Industrial Inkjet businesses both posted an all-time record quarters as well as record recurring revenues. In this seasonally low and pre-drupa quarter, we could not be more pleased with the execution by the team. Our success in balancing the revenue drivers of the company is once again historic. While Fiery revenues came largely in line with normal, seasonally low expectations Industrial Inkjet revenues were up by 47% and Productivity Software grew 45% year over year. As we have long discussed, the Inkjet and Software businesses are becoming the key driver of the company as they now comprise more than 60% of our revenues. Not only do the Inkjet and Software segments bring fast growth with both short and long-term opportunities, more importantly we have direct control in these two segments over the rate of innovation and the activity in the field. I could not be more pleased with how this played out in this pre-drupa quarter, when customers have all the reasons in the world to wait with their buying decisions. We were aggressive and determined to start the year on a high note. While I don't have precise data yet we have strong indications that in those direct sales segments, our field team delivered the share gain in almost every category in which we compete. And perhaps the best part about our fast-growing Industrial Inkjet and Productivity Software segments is that every new sale lead to higher margin recurring revenues for years to come.
Before reviewing each segment business segment in more detail, I wanted to quickly highlight the completion of a very successful Connect User Conference. Our 13 th Annual Conference held in Las Vegas drew about 1200 attendees and featured more than a 160 educational sessions, user groups and demos of the latest EFI products. During the conference, we briefed you new products that could be formally introduced at drupa next month including One; the cloud-based Fiery Dashboard which enables shop owners to analyze their digital print operations and make better business decisions; Two, the new VUTEk HS100 a digital press targeted towards superwide screenprinting that is twice as fast as our current GS printer and better quality than anything currently available in the market and Three; Orion, our new inkjet printer operating system which will be available as an upgrade to all of our current GS customers.Of course we have not yet announced all of the new innovations. So stay tuned for more exciting announcement in the next couple of weeks. Now turning to our business segments. Starting with Industrial Inkjet which delivered a very strong quarter at $75 million posting outstanding growth at 47% and again exceeding our expectations with solid double-digit organic growth in all of our inkjet product lines. Perhaps the most encouraging data point is the 41% growth in UV ink volume. Our customers are clearly capitalizing on the growing opportunity for digital printing, for [platform] advertising and packaging applications. I can tell you first hand that I have met many customers around the globe in the past few months who tell me they are enjoying a very strong business environment. If I had to pick just one example, it will be [Marcos Sapia] the owner of a great company called [Outfix] in São Paulo Brazil. Marcos told me when I visited him in early March that he simply can't wait for drupa to get his second VUTEk GS. His first VUTEk GS unit is working literally 24/7 and he's turning business away because of capacity constraints. Read the rest of this transcript for free on seekingalpha.com