EFI announced its results for the fourth quarter of 2008. For the quarter ended Dec. 31, 2008, the company reported revenues of $135.3 million, compared to fourth quarter 2007 revenues of $152.0 million. The company also announced that in the fourth quarter of 2008, it will recognize a non-cash charge currently estimated in the range of approximately $100 million to $130 million related to the impairment of goodwill and long-lived assets.
Non-GAAP net income was $41.2 million or $0.73 per diluted share for the 12 months ended December 31, 2008, down from $78.0 million or $1.19 per diluted share for the same period in 2007.
“The deteriorating economic environment continued to impact our business during the quarter. In particular, our inkjet business was affected by a difficult credit environment and the global slowdown in advertising and marketing spend,” said Guy Gecht, CEO of EFI. “At the same time, the relative strength of our Fiery and software businesses helped to offset the impact from the equipment spending environment, once again proving the value of our diversified business model. We took significant measures to rationalize our spending to reflect the current business conditions while at the same time focusing on providing innovative tools to help our customers grow new sources of revenues, increase productivity, and identify areas where their costs can be trimmed.”
The company also announced that it closed the sale of certain real estate property in Foster City, CA, to Gilead Sciences, Inc. for a total purchase price of $137.5 million, subject to an escrow holdback of approximately 11 percent. The property sold included approximately 30 acres of land, which is entitled for development, the office building located at 301 Velocity Way consisting of approximately 163,000 square feet, and certain other assets related to the property.