EFI stocks have began to recover after a shock price plunge last week of 45 per cent, where they fell to to US$26.05 from US$47.6.
They have since improved to US$31.81.
The stock fall came after EFI postponed a conference call for its Q2 earnings in order to undertake an independent review of the company’s earnings.
In a statement, EFI notes: “The assessment is related to certain transactions where a customer signed a sales contract for one or more large format printers and was invoiced, and the printer(s) were stored at a third party in-transit warehouse prior to delivery to the end user.
“In addition, EFI is in the process of completing an assessment of the effectiveness of EFI’s current and historical disclosure controls and internal control over financial reporting. EFI expects to report a material weakness in internal control over financial reporting related to this matter. EFI also expects to report that EFI’s disclosure controls were not effective in prior periods.”
The company adds that it may not be able to file its Form 10-Q for the second quarter of 2017 on a timely basis. The stock drop came as a shock, as EFI has enjoyed stellar growth through the past decade, recording revenue of almost US$1bn in the last financial year.
Founded by legendary Israeli innovator Efi Arazi, and one of the primary players in the graphic arts market, especially through its Fiery rips, EFI has gone from strength to strength in the past decade. A leader in wide format, ceramic printing, fabric printing, where it has pioneered the move into digital packaging, EFI also dominates the MIS market, and has workflow and web-to-print software.