Electronics for Imaging, Inc. (NASDAQ:EFII) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 05:00 pm ET


Electronics for Imaging, Inc. (NASDAQ:EFII) Q4 2014 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good afternoon. My name is Kerry, and I will be your conference operator. At this time, I would like to welcome everyone to the Electronics For Imaging Fourth Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I would now like to turn the call over to your host Ms. JoAnn Horne, Investor Relations. You may begin.

JoAnn Horne

Thank you, operator, and thank you everyone for joining us today to discuss EFI's fourth quarter and full-year 2014 results. Leading the call will be Guy Gecht, Chief Executive Officer; and EFI's Interim Chief Financial Officer and Chief Operating Officer, Marc Olin. (Forward-Looking Cautionary Statements)

Now I'll turn the call over to Guy Gecht. Guy?

Guy Gecht

Thank you, JoAnn. Welcome everyone and thank you for joining us today. We're delighted to report another solid quarter, and more importantly another great year for EFI, and we did it despite significant currency headwinds that impacted both our top and bottom lines, as well as headwind from the continued lackluster compaction markets.

Guy Gecht

I would let Marc walk you through the quarterly data, but today, I would like to talk to you about the order ahead, the strengths in our business, especially in the Fiery, VUTEk, Jetrion product lines and how this business strengths combined with our M&A pipeline, shapes our initial thoughts for 2014. I will also discuss I will these factors position us to deliver on our stated revenue and EPS goals for 2016. Lastly, I will talk briefly about (inaudible) connect is a conference last week.

So let me start with the strengths in the Fiery business, and how we continue our performance was key to EFI's success in the fourth quarter. Fiery delivered an exceptional quarter was $11 million, up $75 million up 16% year-over-year. The main driver for the Fiery over performance in the last couple of quarters was a higher attachment rate, especially with newer digital engines launched by our partners.

There are three main reasons for the significant jump in our market share. First, the new engines are faster, better, and more versatile. And as such, the digital front end is becoming a more significant consideration for end-user customers and partners. Second, giving us scale and focus on the Fiery DFE, we are outspending and out innovating the competition with new capabilities in color management, speed, and still pleasant. The third reason is that we see better traction in the market for the EFI ecosystem, where a customer that already uses EFI productivity software or an EFI Inkjet printer is much more likely to choose the Fiery with their new additional press.

Let me turn now to the industrial Inkjet segment, where we had a very strong double-digit growth in our VUTEk and Jetrion brands, which was offset by the continued weakness in the Cretaprints due primarily to ongoing softness in the global compaction market, especially in China. The net result was