Longtime EFI CEO Guy Gecht is stepping down from the role. Executive recruitment company Spencer Stuart has been hired to find a replacement. Gecht – who will make the move once his successor is named – will remain a director and work with the new CEO for a smooth transition.
“With vast market opportunities, loyal customers and a robust product roadmap, reinforced by the unprecedented interest in Nozomi, EFI has never been better positioned for continued growth and success,” said Gecht. “I think this makes it the right time, after 19 years as CEO of this company, for me to hand the reins to the next leader. I will stay fully focused on leading the outstanding EFI team during the search period, and will assist in ensuring a smooth transition once the new CEO is in place. As a shareholder, board member and a lifelong fan, nothing will be more gratifying for me than to see my successor leading EFI to achieve its full potential.”
EFI chairman Gill Cogan said of Gecht’s decision: “Together with his team, Guy transformed EFI from a single product line and OEM business model to a diverse, worldwide leader driving the transition from analogue to on-demand digital imaging in industries that touch our lives every day. He led the expansion into productivity software and industrial inkjet, which drove EFI’s rapid growth to over $1bn in annual revenues. Guy is only EFI’s third CEO in its 30-year history, which has brought a stability that the board truly appreciates.”
The news comes as EFI posted results for the second quarter of 2018. Revenue for the period ended 30 June reached $261.1m, up 6% compared to second quarter 2017 ( $247m). GAAP net income was $3.8m compared to $2.8m for the same period in 2017. Non-GAAP net income was $22.6m, down 11% on the same quarter last year ($25.5m). Cashflow from operating activities was $30.9m compared to $24.1m during the same period in 2017.
For the six months ended 30 June, 2018, EFI reported revenue of $500.9m, up 5% year-over-year compared to $475.7m for the same period in 2017. GAAP net income was $0.2m compared to $7.5m for the same period in 2017. Non-GAAP net income was $39.8m compared to non-GAAP net income of $51.3m for the same period in 2017. Cashflow from operating activities for the six months ended 30 June 2018 was $37.2m compared to $39m during the same period in 2017.
“2018 continues to track well for EFI, with the team delivering record Q2 revenues and solid cash generation despite the significant impact of currency volatility during the quarter,” said Gecht. “I’m especially pleased with the continued progress and increased sales pipeline for our Nozomi platform, validating EFI’s leadership role in the digital transformation of industries such as packaging and fashion, where colorful images truly matter.”
