Loading, Please Wait...

CST: 19/08/2019 19:06:40   

EFI Reports Fourth Quarter and Full Year 2018 Results

201 Days ago

FREMONT, Calif., Jan. 30, 2019 (GLOBE NEWSWIRE) -- Electronics For Imaging, Inc. (Nasdaq: EFII), a world leader in customer-focused digital printing innovation, today announced its results for the fourth quarter and year ended December 31, 2018.

For the three months ended December 31, 2018, the Company reported revenue of $256.9 million, down 5% compared to $269.2 million for the same period in 2017. GAAP net loss was $3.1 million compared to GAAP net loss of $26.3 million for the same period in 2017 or $(0.07) per diluted share compared to $(0.58) per diluted share for the same period in 2017. Non-GAAP net income was $20.5 million, down 14% compared to $24.0 million for the same period in 2017 or $0.46 per diluted share, down 12% compared to $0.52 per diluted share for the same period in 2017. Cash flow from operating activities was $33.4 million, 162% of non-GAAP net income compared to $8.9 million, 37% of non-GAAP net income during the same period in 2017.

For the year ended December 31, 2018, the Company reported revenue of $1.02 billion, up 2% compared to $993.3 million in for the year ended December 31, 2017. GAAP net loss was $1.0 million compared to GAAP net loss of $15.3 million for 2017 or $(0.02) per diluted share compared to $(0.33) per diluted share for 2017. Non-GAAP net income was $82.9 million, down 18% compared to $100.7 million or $1.83 per diluted share, down 14% compared to $2.14 per diluted share for 2017. Cash flow from operating activities for the year ended December 31, 2018 was $83.5 million, 101% of non-GAAP net income compared to $51.3 million, 51% of non-GAAP net income for 2017.

“After spending last week at our Connect User Conference meeting passionate customers who shared how critical our products are in enabling their businesses, my enthusiasm regarding EFI’s opportunity has only increased,” said Bill Muir, CEO of EFI.  “At the same time, these conversations reinforce the need to improve execution, evolve our go-to-market strategy and accelerate innovation to help drive our customers’ success.  To that end, we have recently launched initiatives that will create value for both our customers and EFI.  These steps include a thorough supply chain review to identify cost savings, value stream mapping exercises to analyze our R&D process and identify waste, and a comprehensive assessment of our go-to-market approach.  These are just the first in a series of initiatives we will implement over the coming months.   While the benefits won’t be reflected in our results until late in the year, I am confident we have the right strategy in place to match EFI’s technological expertise with the superior execution that will delight our customers,” concluded Muir.

Conference Call
EFI will discuss the Company’s financial results by conference call at 5:00 pm ET/2:00 pm PT 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™ is a global technology company, based in Silicon Valley, and is leading the worldwide transformation from analog to digital imaging. We are passionate about fueling customer success with products that increase competitiveness and boost productivity. To do that, we develop breakthrough technologies for the manufacturing of signage, packaging, textiles, ceramic tiles, and personalized documents, with a wide range of printers, inks, digital front ends, and a comprehensive business and production workflow suite that transforms and streamlines the entire production process. (www.efi.com)

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 “accelerate”, “address”, “ahead”, “anticipate”, “believe”, “consider”, “continue”, “develop”, "drive", “estimate”, “expect”, “further”, "initiative", "intend", “look”, “plan”, “progress” and "will" 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, introduction of new products, product portfolio, productivity, future opportunities for EFI and its customers, demand for products, the CEO transition, 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, intense competition in each of our businesses, including competition from products developed by EFI’s customers; our ability to remediate the material weaknesses identified in EFI’s internal control over financial reporting; the uncertainty of the outcome of the pending securities lawsuits against EFI; unforeseen expenses; fluctuations in currency exchange rates; the difficulty of aligning expense levels with revenue; management’s ability to forecast revenues, expenses and earnings; our ability to successfully integrate acquired businesses; changes in the mix of products sold; the uncertainty of market acceptance of new product introductions; 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; 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; the impact of changing consumer preferences on demand for our textile products; litigation involving intellectual property rights or other related matters; 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; 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 and are subject to revision until the Company will have filed its Annual Report on Form 10-K for the year ended December 31, 2018. EFI undertakes no obligation to update information contained in this press release. Amounts are subject to rounding.

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.

Impact of the Tax Cuts and Jobs Act of 2017
In December 2017, the Tax Cuts and Jobs Act, which has wide-ranging impacts on EFI including, but not limited to, a Deemed Repatriation Transition Tax and the revaluation of U.S. deferred tax assets and liabilities, was enacted. We recorded a $27.4 million charge in the fourth quarter of 2017 as a provisional estimate related to the aforementioned items. In the first quarter of 2018, we also recorded an additional $1.2 million charge related to the state tax impact associated with the Deemed Repatriation Transition Tax. In the third quarter of 2018, we recorded a benefit of $0.7 million, consisting of an additional U.S. tax charge of $0.4 million and a reduction of the anticipated state tax charge of $1.1 million. In the fourth quarter of 2018, we have recorded a benefit of $0.3 million related to the remeasurement of our U.S. deferred tax assets and liabilities as a result of the filing of our 2017 U.S. federal tax return. The SEC staff issued Staff Accounting Bulletin (“SAB”) 118, which allows companies to record a provisional estimate of the income tax effects in the quarter in which it can make reasonable estimates of the effects of the new law, and our adjustments will be finalized with the filing of our Form 10-K.

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, operating income, and earnings per diluted share that are GAAP net income or GAAP net loss, GAAP operating income, and GAAP earnings per diluted share adjusted to exclude certain costs, expenses, and gains. A reconciliation of the adjustments to GAAP results for the three months and year ended December 31, 2018 and 2017 is 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.

Our non-GAAP measures, including ex-currency 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, revenue, gross profit, operating expenses, net income or earnings per diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that 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.

 
Electronics For Imaging, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
       
  Three Months Ended
December 31,
  Year Ended
December 31,
  2018   2017   2018   2017
Revenue $ 256,949     $ 269,163     $ 1,015,021     $ 993,260  
Cost of revenue 131,590     140,946     516,448     486,804  
Gross profit 125,359     128,217     498,573     506,456  
Operating expenses:              
Research and development 40,240     39,157     159,941     157,358  
Sales and marketing 46,050     44,679     183,498     173,697  
General and administrative 19,483     25,714     76,576     92,953  
Amortization of identified intangibles 10,490     12,510     45,291     47,339  
Restructuring and other 3,104     2,141     13,581     7,562  
Total operating expenses 119,367     124,201     478,887     478,909  
Income from operations 5,992     4,016     19,686     27,547  
Interest expense (5,430 )   (4,967 )   (20,169 )   (19,505 )
Interest income and other income, net 334     1,286     1,604     4,088  
Income before income taxes 896     335     1,121     12,130  
Provision for income taxes 3,960     26,680     2,092     27,475  
Net loss $ (3,064 )   $ (26,345 )   $ (971 )   $ (15,345 )
               
Diluted Earnings Per Share              
Net loss per diluted common share $ (0.07 )   $ (0.58 )   $ (0.02 )   $ (0.33 )
Shares used in diluted per-share calculation 43,583     45,805     44,429     46,281  
                       


 
Electronics For Imaging, Inc.
Reconciliation of GAAP Net Loss to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited)
       
  Three Months Ended December 31,   Year Ended December 31,
  2018   2017   Ex-Currency
2018
  2018   2017   Ex-Currency
2018
Net loss $ (3,064 )   $ (26,345 )   $ (3,064 )   $ (971 )   $ (15,345 )   $ (971 )
Cost of revenue related to fair value inventory adjustments 19     123     19     50     1,383     50  
Ex-currency adjustment         631             1,209  
Stock based compensation – Cost of revenue 1,055     576     1,055     3,770     2,561     3,770  
Stock based compensation – Research and development 3,520     1,621     3,520     13,037     9,177     13,037  
Stock based compensation – Sales and marketing 2,193     1,407     2,193     8,960     6,583     8,960  
Stock based compensation – General and administrative 8,035     387     8,035     19,514     8,211     19,514  
Amortization of intangible assets 10,490     12,510     10,490     45,291     47,339     45,291  
Restructuring and other 3,104     2,140     3,104     13,581     7,562     13,581  
General and administrative:                      
Acquisition-related transaction costs 262     237     262     1,193     2,057     1,193  
Changes in fair value of contingent consideration (9,626 )   4,285     (9,626 )   (21,486 )   6,472     (21,486 )
Revenue recognition accounting review costs and litigation and other settlements 316     1,776     316     1,987     6,878     1,987  
Asset impairment charges 527     880     527     527     880     527  
Interest income and other income (expense), net:                      
Non-cash interest expense related to our convertible notes 3,914     3,338     3,914     14,203     13,051     14,203  
Foreign exchange fluctuation related to contingent consideration     4         8     49     8  
Loss on investments 634         634     634         634  
Balance sheet currency remeasurement impact         (65 )           (1,710 )
Tax effect of non-GAAP adjustments (854 )   21,054     (961 )   (17,362 )   3,853     (17,268 )
Non-GAAP net income $ 20,525     $ 23,993     $ 20,984     $ 82,936     $ 100,711     $ 82,529  
                       
Non-GAAP net income per diluted common share $ 0.46     $ 0.52     $ 0.47     $ 1.83     $ 2.14     $ 1.82  
Shares used in diluted per share calculation 44,528     46,345     44,528     45,307     47,066     45,307  
                                   


 
Electronics For Imaging, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
       
  December 31, 2018   December 31, 2017
Assets      
Current assets:      
Cash and cash equivalents $ 309,052     $ 170,345  
Short-term investments 102,349     148,697  
Accounts receivable, net of allowances of $32.3 million and $32.2 million, respectively 241,841     244,416  
Inventories 134,348     125,813  
Income taxes receivable 4,926     4,565  
Assets held for sale 2,800     4,200  
Other current assets 44,623     41,799  
Total current assets 839,939     739,835  
Property and equipment, net 77,613     98,762  
Restricted cash equivalents 39,809     32,531  
Goodwill 390,109     403,278  
Intangible assets, net 74,722     123,008  
Deferred tax assets 39,449     45,083  
Other assets 37,393     15,504  
Total assets $ 1,499,034     $ 1,458,001  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 148,587     $ 123,935  
Accrued and other liabilities 79,323     98,090  
Deferred revenue 60,547     55,833  
Convertible senior notes, net – current 334,274      
Income taxes payable 5,077     5,309  
Total current liabilities 627,808     283,167  
Convertible senior notes, net – non-current 118,688     318,957  
Imputed financing obligation related to build-to-suit lease     13,944  
Noncurrent contingent and other liabilities 7,179     28,801  
Deferred tax liabilities 3,770     11,652  
Noncurrent income taxes payable 15,481     20,169  
Total liabilities 772,926     676,690  
Total stockholders’ equity 726,108     781,311  
Total liabilities and stockholders’ equity $ 1,499,034     $ 1,458,001  
               


 
Electronics For Imaging, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
   
  Year Ended
December 31,
  2018   2017
Cash flows from operating activities:      
Net loss $ (971 )   $ (15,345 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 65,557     65,647  
Deferred taxes (11,381 )   8,753  
Provision for bad debts and sales-related allowances 7,034     12,416  
Provision for inventory obsolescence 6,016     6,312  
Stock-based compensation, net of cash settlements 45,281     26,532  
Contingent consideration payments related to businesses acquired (22,185 )   (5,906 )
Non-cash accretion of interest expense on convertible notes and imputed financing obligation 15,239     14,981  
Other non-cash charges and credits 1,230     9,598  
Net change in derivative assets and liabilities (2,286 )   2,938  
Changes in operating assets and liabilities, net of effect of acquired business (20,029 )   (74,631 )
Net cash provided by operating activities 83,505     51,295  
Cash flows from investing activities:      
Purchases of short-term investments     (87,623 )
Proceeds from sales and maturities of short-term investments 46,624     233,633  
Purchases of restricted cash investments*     5,115  
Purchases, net of proceeds from sales, of property and equipment (12,290 )   (13,754 )
Proceeds from sale of held-for-sale building and land 1,130      
Businesses and technology purchased, net of cash acquired and dispositions 697     (29,559 )
Net cash provided by investing activities* 36,161     107,812  
Cash flows from financing activities:      
Proceeds from issuance of convertible senior notes 150,000      
Debt issuance costs (3,750 )    
Proceeds from issuance of common stock 10,522     12,074  
Purchases of treasury stock and net share settlements (113,510 )   (101,844 )
Repayment of acquisition-related debt (11,209 )   (11,094 )
Contingent consideration payments related to businesses acquired (2,503 )   (25,018 )
Repayment of short-term obligations (754 )    
Net cash provided by (used for) financing activities 28,796     (125,882 )
Effect of foreign exchange rate changes on cash and cash equivalents (2,477 )   4,196  
Increase (decrease) in cash and cash equivalents* 145,985     37,421  
Cash, cash equivalents, and restricted cash at beginning of year* 202,876     165,455  
Cash, cash equivalents, and restricted cash at end of year* $ 348,861     $ 202,876  
               

*Restricted Cash. ASU 2016-18, Statement of Cash Flows: Restricted Cash, which we adopted in Q1 2018, requires that the statement of cash flows explain the change in cash, cash equivalents, and restricted cash equivalents. Therefore, restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown above. This presentation is required to be presented retrospectively to prior periods.

 
Electronics For Imaging, Inc.
Revenue by Operating Segment and Geographic Area
(in thousands)
(unaudited)
       
  Three Months Ended
December 31,
  Year Ended
December 31,
  2018   2017   2018   2017
Revenue by Operating Segment              
Industrial Inkjet $ 154,014     $ 162,802     $ 607,559     $ 570,688  
Productivity Software 42,445     45,269     168,284     156,561  
Fiery 60,490     61,092     239,178     266,011  
Total $ 256,949     $ 269,163     $ 1,015,021     $ 993,260  
               
Revenue by Geographic Area              
Americas $ 128,650     $ 134,571     $ 502,820     $ 487,968  
EMEA 93,844     94,975     364,908     369,610  
APAC 34,455     39,617     147,293     135,682  
Total $ 256,949     $ 269,163     $ 1,015,021     $ 993,260  
               
Revenue Ex-Currency Adjustment $ 4,288     $ (7,346 )   $ (11,579 )   $ (5,694 )
Total $ 261,237     $ 261,817     $ 1,003,442     $ 987,566  
                               

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 or GAAP net loss, and GAAP earnings per diluted share adjusted to exclude certain costs, expenses, gains, and losses.

We believe that the presentation of non-GAAP net income, non-GAAP operating income, and non-GAAP earnings per diluted share provides important supplemental information regarding certain costs, expenses, gains, and significant 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, non-GAAP operating 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, non-GAAP operating 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 our activities and other factors, facilitates comparability of our 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, non-GAAP operating income, and non-GAAP earnings per diluted share by adjusting GAAP net income or GAAP net loss, non-GAAP operating income, and GAAP earnings per diluted share to remove the impact of amortization of intangible assets, stock-based compensation expense, restructuring and other expenses, acquisition-related transaction costs, costs to integrate such acquisitions into our business, incremental cost of revenue due to the fair value adjustment to inventories acquired in business acquisitions, changes in the fair value of contingent consideration including the related foreign exchange fluctuation impact, revenue recognition and accounting review costs, litigation and other settlements and non-cash interest expense related to our $345 million of 0.75% convertible senior notes and $150 million of 2.25% convertible senior notes (“Notes”). We use a constant non-GAAP tax rate of 19%, which we believe reflects the long-term average tax rate based on our international structure and geographic distribution of revenue and profit.

Ex-Currency. To better understand trends in our business, we believe it is helpful to adjust our statement of operations to exclude the impact of year-over-year changes in the translation of foreign currencies into U.S. dollars. This is a non-GAAP measure that is calculated by adjusting revenue, gross profit, and operating expenses by using historical exchange rates in effect during the comparable prior year period and removing the balance sheet currency re-measurement impact from interest income and other income, net of expenses, including removal of any hedging gains and losses. We refer to these adjustments as “ex-currency”. Management believes the ex-currency measures provide investors with an additional perspective on year-over-year financial trends and enables investors to analyze our operating results in the same way management does. The year-over-year currency impact can be determined as the difference between year-over-year actual growth rates and year-over-year ex-currency growth rates.

These excluded items are described below:

  • Cost of revenue related to fair value adjustment of the Free Flow Print Server business (“FFPS”). Inventory acquired in an acquisition must be recorded at fair value rather than historical cost in accordance with ASC 805, Business Combinations. The fair value of FFPS inventory reflects the manufacturing cost plus a portion of the expected gross profit. In 2017, we adjusted our cost of revenue to reflect the expected gross profit that was included in the inventory valuation under ASC 805. We believe this adjustment is useful to investors to understand the gross profit trends of our ongoing business.

  • Amortization of intangible assets. Intangible assets acquired to date are being amortized on a straight-line basis.

  • Stock-based compensation expense recognized in accordance with ASC 718, Stock Compensation.

  • Restructuring and other consists of:

    •  Restructuring charges incurred as we consolidate the number and size of our facilities and reduce the size of our workforce.

    •  Integration-related expenses were $1.1 and $4.3 million for the three months and year ended December 31, 2018, respectively, and $1.2 and $2.2 million for the year ended December 31, 2017, respectively. We have made numerous acquisitions in recent years, which have required significant information technology investment to integrate them into our business.

  • Acquisition-related transaction costs associated with businesses acquired during the periods reported and anticipated transactions of $0.3 and $1.2 million for the three months and year ended December 31, 2018, respectively, and $0.2 and $2.1 million for the three months and year ended December 31, 2017, respectively.

  • 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 our 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, including the related foreign exchange fluctuation impact. 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.

  • Revenue recognition accounting review costs and litigation and other settlements . As described in “Item 9A, Controls and Procedures” of our annual report on Form 10-K, for the year ended December 31, 2017, as amended, our management concluded that we had material weaknesses in our internal control over financial reporting as of December 31, 2017 related to revenue recognition practices and the valuation of certain textile digital inkjet printer inventories. Therefore, we did not maintain effective internal control over financial reporting or effective disclosure controls and procedures, both of which are requirements of the Securities Exchange Act of 1934, as of that date. We have also incurred costs from time to time settling litigation and other matters. The review of our revenue recognition practices has required that we expend significant management time and incur significant accounting, legal, and other expenses, along with litigation and other settlements, which totaled $0.3 and $2.0 million during the three months and year ended December 31, 2018, and $1.8 and $6.9 million for the three months and year ended December 31, 2017, respectively.

  • Asset impairment charges . Our management approved a plan to sell approximately 31.5 acres of land and the related buildings (“facility”) located in Meredith, New Hampshire during the fourth quarter of 2017. Assets previously recorded within property and equipment, net were reclassified to assets-held-for sale within other current assets on our Condensed Consolidated Balance Sheets as of December 31, 2018 and 2017. As of December 31, 2017, we estimated the fair value of the facility based on the expected sales proceeds, less cost to sell, was less than the carrying amount of the assets. As a result, an impairment loss of approximate $0.9 million was recognized for the three and twelve months ended December 31, 2017.

    We recorded asset impairment charges of $0.5 million in the year ended December 31, 2018 representing an additional impairment on our held-for-sale asset in Meredith, New Hampshire and equipment that is no longer in use or recoverable.

  • Non-cash interest expense on our convertible notes . Our Notes may be settled in cash on conversion. We are required to separately account for the liability (debt) and equity (conversion option) components of the Notes in a manner that reflects our non-convertible debt borrowing rate. Accordingly, for GAAP purposes, we are required to amortize a debt discount equal to the fair value of the conversion option as interest expense on our Notes.

  • Loss on Investments . During the fourth quarter of 2018, we recognized $0.6 million loss on available-for-sale short-term investments that we intend to sell in 2019 and which we determined to be other-than-temporarily impaired per the accounting guidance.

  • Tax effect of non-GAAP adjustments. We use a constant non-GAAP tax rate of 19%, which we believe reflects the long-term average tax rate based on our international structure and geographic distribution of revenue and profit. The long-term average tax rate is calculated in accordance with the principles of ASC 740, Income Taxes, to estimate the non-GAAP income tax provision in each jurisdiction in which we operate after excluding the tax effect of the non-GAAP items described above, and $(0.3), $(0.7), $1.2 and $27.4 million of tax charges (benefits) recognized in Q4 18, Q3 18, Q1 18, and Q4 17, respectively, as a result of the 2017 Tax Act, which was enacted on December 22, 2017.
   
For more information :

Marc Olin
Chief Financial Officer
EFI
650-357-3500
Investor Relations:

JoAnn Horne
Market Street Partners
415-445-3235
   

Is your business listed correctly on America’s largest city directory network of 1,000 portals?