EFI Spins Off Its MWA Product Line to MWA Intelligence, LLC
FOSTER CITY, Calif.--(BUSINESS WIRE)--June 1, 2006--EFI (Nasdaq:EFII), the world leader in digital controllers, superwide format printers and inks, and print management solutions, today announced the sale of its Mobile Workforce Automation product line for $10 million to a newly formed company backed by MWA Intelligence, Inc. EFI will retain a 5 percent interest in the new company which will remain under existing management. The company expects the transaction to have an immaterial impact on its second quarter 2006 results. For the remainder of 2006, the sale of MWA will result in a reduction of revenues of approximately $5 million and a $0.02 reduction in earnings.
The company intends to use the proceeds from the sale to buy back its shares over the next 30 days.
MWA Intelligence, Inc., was formed by Opus Acquisition Group, LLC, Greyrock Capital Group and other investors to create the newly formed company and to manage the MWA product line. The MWA product line includes EFI's Mobile Workforce Automation solution (formerly known as Automated Dispatch Systems or ADS) and other related products.
"This decision benefits both EFI's and MWA's customers, enabling EFI to further focus on strategic growth opportunities in digital printing while giving MWA independence and dedicated resources to capitalize on the opportunities in the mobile field service, tracking and remote diagnostic tools marketplace," said Guy Gecht, EFI CEO.
"MWA Intelligence, Inc. is strategically focused on expanding its service management, mobile workforce automation, and remote and intelligent asset diagnostics solution portfolio around the world," said Michael T. Stramaglia, MWA CEO. "While EFI is a well-respected and innovative company, the MWA business is now at a point where given the right resources and focus along with the strong backing of MWA Intelligence, Inc., we can establish a successful independent workforce and assets management company. MWA Intelligence provides the resources necessary to further develop our technology, customer support and worldwide reach."
EFI (www.efi.com) is the world leader in digital controllers, superwide format printers and inks, and print management solutions for commercial and enterprise printing. EFI's award-winning technologies offer integrated document management tools from creation to print, including high fidelity color Fiery® print servers that can output up to 2000 ppm; VUTEk superwide digital inkjet printers and UV and solvent inks capable of printing on flexible and rigid substrates; powerful print production workflow and management information software solutions for increased performance and cost efficiency; and an array of corporate printing solutions. EFI's integrated solutions connect seamlessly, delivering unbeatable performance, cost savings and increased productivity. EFI maintains 22 offices worldwide.
About MWA Intelligence, Inc.
MWA Intelligence, Inc. is a privately held investment group backed by Greyrock Capital Group and other investors.
Safe Harbor for Forward Looking Statements
The statements, "The company expects the transaction to have an immaterial impact on its second quarter 2006 results" and "For the remainder of 2006, the sale of MWA will result in a reduction of revenues of approximately $5 million and a $0.02 reduction in earnings," and "The Company intends to use the proceeds from the sale to buy back its shares over the next 90 days" 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. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ materially, including, but not necessarily limited to, the following: (1) Management's ability to forecast revenues and control expenses, especially on a quarterly basis, continues to be a challenge. Unexpected declines in revenue without a corresponding and timely decline in expenses could have a material adverse effect on results of operations; (2) current world-wide financial/economic difficulties continue including variations in foreign exchange rates; (3) variations in growth rates or declines in the printing and imaging market across various geographic regions may cause a material impact in our results; (4) changes in historic customer order patterns, including changes in customer and channel inventory levels may cause a material impact in our results; (5) changes in the mix of products sold leads to variations in results; (6) market acceptance of new products and contribution to EFI's revenue cannot be assured; (7) delays in product delivery can cause quarterly revenues and income to fall significantly short of anticipated levels; (8) competition and/or market factors in the various markets may pressure EFI to reduce prices on certain products; (9) competition with products internally developed by EFI's customers may result in declines in EFI sales and revenues; (10) excess or obsolete inventory and variations in inventory valuation may cause a material impact in our results; (11) continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments may not be assured; (12) timely and qualitative execution in the manufacturing of products may not be assured; (13) litigation involving intellectual property or other matters may cause a material impact in our results; (14) our ability to adequately service our debt; (15) our ability to successfully integrate acquired businesses with our own without operational disruption to their business or ours, loss of sales, unexpected costs or adverse impact on relations with customers or suppliers; (16) our financial results as filed on Form 10-Q and Form 10-K may differ from the results included in our earnings press releases due to the complexity in accounting rules and (17) other risk factors listed from time to time in the Company's SEC reports. EFI undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with EFI's business, please refer to the section entitled "Factors That Could Adversely Affect Performance" of EFI's SEC filings, including, but not limited to, its annual report on Form 10-K and 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 email@example.com or EFI's Investor Relations website at http://www.efi.com.
NOTE TO EDITORS: EFI is a registered trademark of Electronics For Imaging, Inc. in the U.S. Patent and Trademark Office and/or certain other foreign jurisdictions. All other trademarks mentioned in this document are the property of their respective owners.