Electronics For Imaging Inc. (EFII) recently posted fourth quarter net loss of $3.4 million or 7 cents per share, compared to a loss of $104.5 million or $2.03 per share in the year-ago period, which included a goodwill and asset impairment charge of $111.9 million. The quarterly result also came in behind the Zacks Consensus Estimate for a loss of 6 cents per share.

Electronics For Imaging designs and markets products that support color and black-and-white printing on a variety of peripheral devices. Its products incorporate hardware and software technologies that transform digital copiers and printers from many leading copier manufacturers into fast, high-quality networked printers.

During the quarter, the company recorded a 15.7% decline in revenues to $114.0 million from $135.3 million in the year-ago quarter. The decrease was primarily caused by a 24.4% reduction in the Fiery product line to $53.1 million, coupled with a 2.0% decrease in the Inkjet business to $46.8 million.

Electronics For Imaging’s gross profit reduced 21.7% year over year to $59.6 million, while gross margin slipped by 400 basis points (bps) to 52.3%. The reduction in gross margin was mainly attributable to sluggish Inkjet margins caused by higher freight costs. Research and Development expense decreased 22.4% to $26.6 million, while Selling and Marketing expense reduced by 8.1% to $26.4 million primarily due to cost-cutting efforts of the management.

Electronics For Imaging also benefitted from the absence of a goodwill and asset impairment charge $111.9 million in the year-ago quarter. Accordingly, the company recorded a smaller operating loss of $5.4 million, compared to a loss of $116.2 million in the year-ago period.

At quarter end, Electronics For Imaging had cash, equivalents and short-term investments of $204.2 million, compared to $189.4 million in the year-ago period. During the quarter, the company deployed $70 million to buy back 5.5 million shares at an average price of $12.75.

Looking ahead, Electronics For Imaging expects revenues to decline during the first quarter of 2010 mainly on account of seasonal fluctuations. The Zacks Consensus Estimate for both the first quarter and full-year 2010 is currently pegged at a loss of 10 cents per share, which has remained constant over the past 2 months.

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