EFI Reports Record First Quarter With Revenue of $171M, Up 7%

EFI Reports Record First Quarter With Revenue of $171M, Up 7%

Growth Across All Business Segments Drives 24% Operating Income Increase and
Solid Cash Generation

FOSTER CITY, Calif., April 18, 2013 (GLOBE NEWSWIRE) -- Electronics For
Imaging, Inc. (Nasdaq:EFII), a world leader in customer-focused digital
printing innovation, today announced its results for the first quarter of
2013.

For the quarter ended March 31, 2013, the Company reported first quarter
record revenue of $171.4 million, up 7% compared to first quarter 2012 revenue
of $160.1 million. First quarter 2013non-GAAP net income was $15.8 million or
$0.33 per diluted share, which included an unfavorable non-operational
currency impact of $0.04 per diluted share, compared to non-GAAP net income of
$14.2 million or $0.30 per diluted share for the same period in 2012. GAAP net
income was $8.4 million or $0.17 per diluted share, compared to $6.2 million
or $0.13 per diluted share for the same period in 2012.

"The EFI team delivered a great first quarter with revenue growth above our
expectations, a solid increase in profitability, and very strong cash
generation," said Guy Gecht, CEO of EFI. "With new breakthrough products
across our portfolio and sales opportunities at trade shows around the globe,
we look for this robust demand to continue into the current quarter as EFI's
innovation continues to help customers drive growth and productivity in their
businesses."

EFI will discuss the Company's financial results by conference call at 2:00
p.m. PDT today. Instructions for listening to the conference call over the Web
are available on the investor relations portion of EFI's website at
www.efi.com.

About EFI

EFI™ (www.efi.com) is a worldwide provider of products, technology, and
services leading the transformation of analog to digital imaging. Based in
Silicon Valley with offices around the globe, the company's powerful
integrated product portfolio includes digital front-end servers; superwide,
wide-format, label, and ceramic inkjet presses and inks; production workflow,
web-to-print, and business automation software; and office, enterprise, and
mobile cloud solutions. These products allow users to produce, communicate and
share information in an easy and effective way, and enable businesses to
increase their profits, productivity, and efficiency.

Safe Harbor for Forward Looking Statements

Certain statements in this press release are forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Statements
other than statements of historical fact including words such as "anticipate",
"believe", "estimate", "expect", "consider" and "plan" and statements in the
future tense are forward looking statements. The statements in this press
release that could be deemed forward-looking statements include statements
regarding EFI's strategy, plans, expectations regarding its revenue growth,
product portfolio, productivity, future opportunities for EFI and its
customers, and any statements or assumptions underlying any of the foregoing.

Forward-looking statements are subject to certain risks and uncertainties that
could cause our actual future results to differ materially, or cause a
material adverse impact on our results. Potential risks and uncertainties
include, but are not necessarily limited to, unforeseen expenses; the
difficulty of aligning expense levels with revenue; management's ability to
forecast revenues, expenses and earnings; any world-wide financial and
economic difficulties and downturns; adverse tax-related matters such as tax
audits, changes in our effective tax rate or new tax legislative proposals;
the unpredictability of development schedules and commercialization of
products by the leading printer manufacturers and declines or delays in demand
for our related products; changes in the mix of products sold; the uncertainty
of market acceptance of new product introductions; intense competition in each
of our businesses, including competition from products developed by EFI's
customers; challenge of managing asset levels, including inventory and
variations in inventory levels; the uncertainty of continued success in
technological advances; the challenges of obtaining timely, efficient and
quality product manufacturing and supply of components; litigation involving
intellectual property rights or other related matters; our ability to
successfully integrate acquired businesses; the uncertainty regarding the
amount and timing of future share repurchases by EFI and the origin of funds
used for such repurchases; the market prices of EFI's common stock prior to,
during and after the share repurchases; any disruptions in our operations, the
difficulty to retain employees, and additional expenses that we may incur as a
result of our relocation from the Foster City campus; the compliance with the
new requirements regarding the "conflict minerals," if they are found to be
used in our products, and any other risk factors that may be included from
time to time in the Company's SEC reports.

The statements in this press release are made as of the date of this press
release. EFI undertakes no obligation to update information contained in this
press release.For further information regarding risks and uncertainties
associated with EFI's businesses, please refer to the section entitled "Risk
Factors" in the Company's SEC filings, including, but not limited to, its
annual report on Form 10-K and its quarterly reports on Form 10-Q, copies of
which may be obtained by contacting EFI's Investor Relations Department by
phone at 650-357-3828 or by email at investor.relations@efi.com or EFI's
Investor Relations website at www.efi.com.

Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial results prepared under
generally accepted accounting principles, or GAAP, we use non-GAAP measures of
net income (loss), as the case may be, and earnings per diluted share that are
GAAP net income (loss), as the case may be, and GAAP earnings per diluted
share adjusted to exclude certain recurring and non-recurring costs, expenses
and gains. A reconciliation of the adjustments to GAAP results for the three
months ended March 31, 2013and 2012is provided below. In addition, an
explanation of how management uses non-GAAP financial information to evaluate
its business, the substance behind management's decision to use this non-GAAP
financial information, the material limitations associated with the use of
non-GAAP financial information, the manner in which management compensates for
those limitations, and the substantive reasons management believes that this
non-GAAP financial information provides useful information to investors is
included under "About our Non-GAAP Net Income and Adjustments" after the
tables below.

These non-GAAP measures are not in accordance with or an alternative to GAAP
and may be materially different from other non-GAAP measures, including
similarly titled non-GAAP measures, used by other companies.The presentation
of this additional information should not be considered in isolation from, as
a substitute for, or superior to, net income (loss), as the case may be, or
earnings per diluted share prepared in accordance with GAAP.


Electronics For Imaging, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
                                                      
                                            Three Months Ended
                                            March 31,
                                            2013       2012
                                                      
Revenue                                      $171,359 $160,056
Cost of revenue                              77,499    72,389
Gross profit                                 93,860    87,667
Operating expenses:                                    
Research and development                     31,067     30,899
Sales and marketing                          32,736     30,917
General and administrative                   13,698     12,902
Amortization of identified intangibles       4,927     4,184
Restructuring and other                      1,902     1,084
Total operating expenses                     84,330    79,986
Income from operations                       9,530     7,681
Interest and other income (expense), net     (2,924)   570
Income before income taxes                   6,606     8,251
Benefit from (provision for) income taxes    1,756     (2,017)
Net income                                   $8,362   $6,234
                                                      
Fully Diluted EPS calculation                          
Net income                                   $8,362   $6,234
Net income per diluted common share          $0.17    $0.13
Shares used in diluted per share calculation 47,986    47,359



Electronics For Imaging, Inc.
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited)
                                                                   
                                                          Three Months Ended
                                                          March 31,
                                                          2013      2012
                                                                   
Net income                                                 $8,362  $6,234
Amortization of identified intangibles                     4,927     4,184
Stock based compensation – Cost of revenue                 469       298
Stock based compensation – Research and development        1,867     1,563
Stock based compensation – Sales and marketing             888       756
Stock based compensation – General and administrative      3,420     2,049
Restructuring and other                                    1,902     1,084
General and administrative ("G&A")                                  
Acquisition-related transaction costs                      19        451
Change in fair value of contingent consideration           (262)     —
Sublease income related to our deferred property sale      (720)     —
Depreciation expense related to our deferred property sale 410       —
Interest and other income (expense), net ("OI&E"):                  
Interest expense related to our deferred property sale     880       —
Relocation expenses related to deferred property sale      76        —
Tax effect of non-GAAP adjustments                         (6,487)   (2,457)
Non-GAAP net income                                        $15,751 $14,162
                                                                   
Non-GAAP net income per diluted common share               $0.33   $0.30
Shares used in per share calculation                       47,986   47,359



Electronics For Imaging, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                      
                                   March 31,           December 31,
                                   2013                2012
                                                      
Assets                                                 
Cash and cash equivalents           $298,251          $283,996
Short-term investments              83,210             80,966
Accounts receivable, net            126,497            135,110
Inventories                         62,164             58,343
Other current assets                86,428             74,877
Total current assets                656,550            633,292
Property and equipment, net         85,679             86,582
Goodwill                            216,530            219,383
Intangible assets, net              74,460             80,244
Other assets                        58,380             55,397
Total assets                        $1,091,599        $1,074,898
                                                      
Liabilities & Stockholders' equity                     
Accounts payable                    $72,222           $63,446
Deferred proceeds from property     181,096            180,216
transaction
Accrued and other liabilities       126,410            119,174
Income taxes payable                5,057              7,562
Total current liabilities           384,785            370,398
Contingent and other liabilities    7,654              17,742
Deferred tax liabilities            6,012              6,210
Long term taxes payable             31,017             29,755
Total liabilities                   429,468            424,105
Total stockholders' equity          662,131            650,793
Total liabilities and stockholders' $1,091,599        $1,074,898
equity
                                                      
Note: In accordance with ASC 805, we revised previously issued financial
information to reflect adjustments to the accounting for business
acquisitions as if they occurred on the acquisition date. Accordingly, we   
have increased goodwill and accrued and other liabilities by $1.1 million
at December 31, 2012 to reflect opening balance sheet adjustments related
to our acquisitions of Cretaprint, OPS, and Technique.
                                                      


Electronics For Imaging, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
                                                          
                                        Three Months Ended
                                        March 31,
                                        2013               2012
                                                          
Cash flows from operating activities:                      
Net income                              $8,362           $6,234
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization            7,158              6,139
Deferred taxes                           (5,366)            602
Tax benefit from employee stock plans    1,885              127
Excess tax benefit from stock-based      (2,013)            (385)
compensation
Stock-based compensation                 6,644              4,666
Provision for (releases of) inventory    1,842              (35)
obsolescence reserves
Provision for allowance for bad debts    1,337              201
and sales-related allowances
Contingent consideration payments        (618)              —
related to business acquired
Other non-cash charges and adjustments   306                2,231
Changes in operating assets and          3,081              (9,814)
liabilities
Net cash provided by operating           22,618*            9,966
activities*
                                                          
Cash flows from investing activities:                      
Purchases of short-term investments      (12,288)           (20,415)
Proceeds from sales and maturities of    9,860              29,298
short-term investments
Purchases, net of proceeds from sales,   (2,269)            (1,307)
of property and equipment
Businesses purchased, net of cash        —                 (29,106)
acquired
Proceeds from notes receivable of        —                 5,216
acquired business
Net cash used for investing activities   (4,697)            (16,314)
                                                          
Cash flows from financing activities:                      
Proceeds from issuance of common stock   7,621              6,094
Purchases of treasury stock and net      (11,567)           (1,680)
settlement of restricted stock
Repayment of debt assumed through        (354)              (5,547)
business acquisitions
Contingent consideration related to      (349)              —
business acquired
Excess tax benefit from stock-based      2,013              385
compensation
Net cash used for financing activities   (2,636)            (748)
                                                          
Effect of foreign exchange rate changes  (1,030)            706
on cash and cash equivalents
Increase (decrease) in cash and cash     14,255             (6,390)
equivalents
Cash and cash equivalents at beginning   283,996            120,058
of year
Cash and cash equivalents at end of      $298,251         $113,668
period
                                                          
* If we excluded $5.5 million of taxes paid during the current quarter related
to the sale of our corporate headquarters facility, then our net cash provided
by operating activities would be $28.1 million for the three months ended
March 31, 2013.

                                                          

Electronics For Imaging, Inc.
Revenue by Operating Segment and Geographic Area
(in thousands)
(unaudited)
                                      
                            Three Months Ended
                            March 31,
                                      
Revenue by Operating Segment 2013       2012
Industrial Inkjet            $80,303  $75,092
Productivity Software        27,729    24,069
Fiery                        63,327    60,895
Total                        $171,359 $160,056
                                      
Revenue by Geographic Area             
Americas                     $93,897  $82,181
EMEA                         50,046    55,126
APAC                         27,416    22,749
Japan                        7,219     6,952
ROW                         20,197    15,797
Total                        $171,359 $160,056

                About our Non-GAAP Net Income and Adjustments

Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial results prepared in
accordance with GAAP, we use non-GAAP measures of net income and earnings per
diluted share that are GAAP net income and GAAP earnings per diluted share
adjusted to exclude certain recurring and non-recurring costs, expenses, and
gains.

We believe that the presentation of non-GAAP net income and non-GAAP earnings
per diluted share provides important supplemental information regarding
non-cash expenses and significant recurring and non-recurring items that we
believe are important to understanding financial and business trends relating
to our financial condition and results of operations. Non-GAAP net income and
non-GAAP earnings per diluted share are among the primary indicators used by
management as a basis for planning and forecasting future periods and by
management and our Board of Directors to determine whether our operating
performance has met specified targets and thresholds. Management uses non-GAAP
net income and non-GAAP earnings per diluted share when evaluating operating
performance because it believes the exclusion of the items described below,
for which the amounts and/or timing may vary significantly depending on the
Company's activities and other factors, facilitates comparability of the
Company's operating performance from period to period. We have chosen to
provide this information to investors so they can analyze our operating
results in the same way that management does and use this information in their
assessment of our business and the valuation of our Company.

Use and Economic Substance of Non-GAAP Financial Measures

We compute non-GAAP net income and non-GAAP earnings per diluted share by
adjusting GAAP net income and GAAP earnings per diluted share to remove the
impact of recurring amortization of acquisition-related intangibles and
stock-based compensation expense, as well as restructuring related and
non-recurring charges and gains and the tax effect of these adjustments. Such
non-recurring charges and gains include acquisition-related transaction
expenses and the costs to integrate such acquisitions into our business,
changes in the fair value of contingent consideration, corporate headquarters
relocation expenses, and imputed interest expense and depreciation, net of
accrued sublease income, related to the sale of our corporate headquarters
facility and related land.

These excluded items are described below:

  *Recurring charges and gains, including:

    *Amortization of acquisition-related intangibles. Intangible assets
      acquired to date are being amortized on a straight-line basis.
      Post-acquisition non-competition agreements are amortized over their
      term.
    *Stock-based compensation expense recognized in accordance with ASC 718,
      Stock-based Compensation.

  *Non-recurring charges and gains, including:

    *Restructuring and other consists of:

   - Restructuring charges incurred as we consolidate the number
  and size of our facilities and, as a result, reduce the size of our
  workforce.

  - Acquisition-related executive deferred compensation costs,
  which are dependent on the continuing employment of a former shareholder of
  an acquired company, are being amortized on a straight-line basis.

   - Expenses incurred to integrate businesses acquired during
  the periods reported and anticipated acquisitions.

  *Certain G&A and OI&E expenses, including:

    *Acquisition-related transaction costs associated with businesses
      acquired during the periods reported and anticipated transactions.
    *Changes in fair value of contingent consideration. Our management
      determined that we should analyze the total return provided by the
      investment when evaluating operating results of an acquired entity. The
      total return consists of operating profit generated from the acquired
      entity compared to the purchase price paid, including the final amounts
      paid for contingent consideration without considering any
      post-acquisition adjustments related to changes in the fair value of the
      contingent consideration. Because management believes the final purchase
      price paid for the acquisition reflects the accounting value assigned to
      both contingent consideration and to the intangible assets, we exclude
      the GAAP impact of any adjustments to the fair value of
      acquisition-related contingent consideration from the operating results
      of an acquisition in subsequent periods. We believe this approach is
      useful in understanding the long-term return provided by our
      acquisitions and that investors benefit from a supplemental non-GAAP
      financial measure that excludes the impact of this adjustment.
    *Imputed net expenses related to sale of building and land. On
      November1, 2012, we sold our 294,000 square foot building located at
      303 Velocity Way in Foster City, California, which serves as our current
      corporate headquarters, along with approximately fouracres of land and
      certain other assets related to the property, to Gilead Sciences, Inc.
      for $179.7 million. We will continue to use the facility for up to one
      year from the date of the sale of the property, for which rent is not
      required to be paid. This constitutes a form of continuing involvement
      that prevents gain recognition. Until we vacate the building, the
      proceeds from the sale will be recognized as deferred proceeds from
      property transaction on our Condensed Consolidated Balance Sheet, which
      is currently $181.1 million, including imputed interest costs. Imputed
      sublease income of $0.7 million and imputed depreciation of $0.4 million
      are included in General and Administrative expenses. Imputed interest
      expense of $0.9 million is included in Interest and other income
      (expense), net, as of March31, 2013.
    *Expenses incurred during the period related to the upcoming relocation
      of our corporate headquarters facility are included in Interest and
      other income (expense), net.

  *Tax effect of non-GAAP adjustments

    *After excluding the items described above, we apply the principles of
      ASC 740, Income Taxes, to estimate the non-GAAP income tax provision in
      each jurisdiction in which we operate.
    *To facilitate comparability of our operating performance between 2013
      and 2012, we have excluded the following from our non-GAAP net income
      for the three months ended March 31, 2013:

  - Interest accrued on prior year tax reserves of $0.1
  million,

  - Tax charge of $0.3 million resulting from the filing of tax
  returns by foreign subsidiaries for periods prior to their acquisition by
  EFI.

   -Tax benefit of $3.4 million from the retroactive renewal of
  both the 2012 U.S. federal research and development tax credit and certain
  international tax provisions on January2, 2013. The tax benefit for these
  items had been previously recognized in our non-GAAP net income for the year
  ended December 31, 2012

Usefulness of Non-GAAP Financial Information to Investors

These non-GAAP measures are not in accordance with or an alternative to GAAP
and may be materially different from other non-GAAP measures, including
similarly titled non-GAAP measures, used by other companies. The presentation
of this additional information should not be considered in isolation from, as
a substitute for, or superior to, net income or earnings per diluted share
prepared in accordance with GAAP. Non-GAAP financial measures have limitations
as they do not reflect certain items that may have a material impact upon our
reported financial results. We expect to continue to incur expenses of a
nature similar to the non-GAAP adjustments described above, and exclusion of
these items from our non-GAAP net income and non-GAAP earnings per diluted
share should not be construed as an inference that these costs are unusual,
infrequent, or non-recurring.

CONTACT: Vincent Pilette
         Chief Financial Officer
         EFI
         650-357-3500

         Investor Relations:
         JoAnn Horne
         Market Street Partners
         415-445-3235

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