ELECTRONICS FOR IMAGING INC

CIK:0000867374|SEC Filings

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 223,715	$ 239,866
Cost of revenue	113,896	120,759
Gross profit	109,819	119,107
Operating expenses:
Research and development	39,737	38,279
Sales and marketing	45,871	46,680
General and administrative	24,982	19,421
Amortization of identified intangibles	9,978	12,138
Restructuring and other	2,416	4,654
Total operating expenses	122,984	121,172
Loss from operations	(13,165)	(2,065)
Interest expense	(6,918)	(4,954)
Interest and other income, net	1,572	1,289
Loss before income taxes	(18,511)	(5,730)
Provision (benefit) for income taxes	152	(2,135)
Net loss	$ (18,663)	$ (3,595)
Basic net loss common share (in usd per share)	$ (0.44)	$ (0.08)
Net loss per diluted common share (in usd per share)	$ (0.44)	$ (0.08)
Shares used in basic per-share calculation (in shares)	42,614	45,030
Shares used in diluted per-share calculation (in shares)	42,614	45,030

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (18,663)	$ (3,595)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	17,217	17,106
Deferred taxes	(11,736)	10,638
Provisions for bad debt and sales-related allowances	(467)	(1,219)
Provision for inventory obsolescence	2,355	1,650
Stock-based compensation expense	9,274	6,770
Non-cash accretion of interest expense on convertible notes and imputed financing obligation	4,802	3,802
Change in fair value of contingent consideration, including accretion	2,006	(1,459)
Payment of contingent obligations	(464)	(26)
Net change in derivative assets and liabilities	714	1,271
Other non-cash charges	577	386
Changes in operating assets and liabilities	(24,491)	(29,031)
Net cash provided by (used in) operating activities	(18,876)	6,293
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	102,006	7,318
Purchases, net of proceeds from sales, of property and equipment	(2,711)	(4,214)
Businesses purchased, net of cash acquired	0	(252)
Net cash provided by investing activities	99,295	2,852
Cash flows from financing activities:
Proceeds from issuance of common stock	4,754	5,010
Purchases of treasury stock and net share settlements	(2,470)	(17,601)
Repayment of acquisition-related debt	(1,437)	(254)
Contingent consideration payments related to businesses acquired	(2,252)	(698)
Net cash used in financing activities	(1,405)	(13,543)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash equivalents	180	332
Increase (decrease) in cash, cash equivalents, and restricted cash equivalents	79,194	(4,066)
Cash, cash equivalents, and restricted cash equivalents at beginning of period	348,861	202,876
Cash, cash equivalents, and restricted cash equivalents at end of period	$ 428,055	$ 198,810

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 388,246	$ 309,052
Short-term investments	0	102,349
Accounts receivable, net of allowances of $30.9 million and $32.3 million, respectively	242,121	241,841
Inventories	141,880	134,348
Income taxes receivable	2,731	4,926
Assets held for sale	2,800	2,800
Other current assets	50,094	44,623
Total current assets	827,872	839,939
Property and equipment, net	80,749	77,613
Restricted cash equivalents	39,809	39,809
Goodwill	391,200	390,109
Intangible assets, net	65,157	74,722
Deferred tax assets	44,317	39,449
Operating lease right-of-use assets	34,582	0
Other assets	41,588	37,393
Total assets	1,525,274	1,499,034
Current liabilities:
Accounts payable	133,340	148,587
Accrued and other liabilities	76,024	79,323
Deferred revenue	75,716	60,547
Convertible senior notes, net – current	338,234	334,274
Operating lease liabilities – current	8,764	0
Income taxes payable – current	6,307	5,077
Total current liabilities	638,385	627,808
Convertible senior notes, net – noncurrent	120,035	118,688
Operating lease liabilities – noncurrent	26,991	0
Contingent and other liabilities – noncurrent	3,380	7,179
Deferred tax liabilities	3,207	3,770
Income taxes payable – noncurrent	15,786	15,481
Total liabilities	807,784	772,926
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value; 150,000 shares authorized; 55,898 and 55,347 shares issued, respectively	559	553
Additional paid-in capital	835,227	821,205
Treasury stock, at cost; 13,018 and 12,927 shares, respectively	(491,553)	(489,083)
Accumulated other comprehensive loss	(13,608)	(12,814)
Retained earnings	386,865	406,247
Total stockholders’ equity	717,490	726,108
Total liabilities and stockholders’ equity	$ 1,525,274	$ 1,499,034