EFI to Spin-Off Jetrion Label-Printer Line
In an October 26th earnings call, a transcript of which was provided by Seeking Alpha, Electronics for Imaging (EFI) CEO Guy Gecht said that the firm will be exiting the label-printer market.
‘We expect to spin-out the operational part of our jet label printer line but we are keeping the IP (intellectual property) and ink at EFI,” commented Gecht in the earnings call.
‘In the last few weeks of the quarter, we were in an intensive discussion with one of the firms that contacted us in the past with an interest in taking over the product line. With a strategic shift away from labels, our team slowed the pursuit of new deals. So, we ended up with no label-printer sales compared to 4 million USD in the third quarter of last year.’
EFI is said to see opportunities in corrugated digital printing, including with its Nozomi single-pass LED inkjet press for high-speed corrugated board production.
Gecht noted that the company’s industrial textile business achieved double-digit growth during the third quarter and it is making “significant progress” in the rollout of Nozomi.
Gecht said the first model is set to produce one million square meters in October, about 247 acres of output in one month from one machine alone.
“We have customers for 2017 units who wish to remain anonymous for now,’” Gecht said. ‘All we can say at this point that one unit will be out first in Asia-Pacific and one will be the second installation in the US at an integrated corrugated producer. So, the four units we planned to recognize in the fourth quarter are all identified.
“As planned, we are on track to manufacture two units per month exiting the year and we’re confident we can make 24 units next year. Our working assumption is that we will recognize 60 million USD in printers and ink revenue from these units during 2018 with the balance of the revenue recognized in 2018.
“We’re particularly gratified to finally see the results of our years of investment in this great new opportunity. We have the foresight few years ago to begin investing in the corrugated packaging segment because we were confident it will be the next and potentially the most significant opportunity for industrial inkjet and it’s great to hear our customers validate that strategy and tell us we made the right choice and executed on this path.”
Update: EFI reports that partner Xeikon will take over sales, service, and support for Jetrion label printers – see our story here.
- October 2017: Xeikon to Provide Sales, Service, Support for EFI’s Jetrion Label-Printer Line
- October 2017: Net Income, Earnings per Share Down Sharply for EFI’s Third Quarter
- October 2017: EFI Acquires Escada Systems in Bid to Expand Offerings for Package-Printing Market
- September 2017: After Delay, EFI Reports ‘Record’ Second-Quarter Revenue
- August 2017: Nasdaq Sends EFI Warning on Failure to File Quarterly Report
- August 2017: Shareholder Class-Action Lawsuit Filed Against EFI
- April 2017: EFI Reports Robust Net Income for First-Quarter 2017
- February 2017: Xerox Sells FreeFlow Print Server Business to EFI
- October 2016: EFI Revenue up 7 Percent, Net Income up 76 Percent
- July 2016: EFI Second-Quarter Revenue up 21 Percent to $264 Million, But Net Income Slides
- June 2016: EFI Acquires Optitex in Bid to Extend Marketshare in Textile-Printing Industry
- April 2016: EFI: Record First-Quarter Revenue of $234 Million, up 20 Percent
- January 2016: ‘Record Revevue’ for EFI’s Fourth-Quarter, but Net Income Down