Electronics For Imaging (EFII) 8-K EFI REPORTS Q2 2008 Results

Exhibit 99.1

For more information:	Investor Relations;
John Ritchie	JoAnn Horne
Chief Financial Officer	Market Street Partners
EFI	415-445-3239
650-357-3500

EFI REPORTS Q2 2008 Results

Foster City, Calif. – July 29, 2008 – EFI (Nasdaq: EFII), the world leader in customer-focused digital printing, announced today its results for the second quarter of 2008. For the quarter ended June 30, 2008, the Company reported revenues of $143.8 million, compared to second quarter 2007 revenue of $162.4 million.

GAAP net income (loss) was $(0.1) million or $(0.00) per diluted share in the second quarter of 2008, compared to $9.6 million or $0.15 per diluted share for the same period in 2007.

GAAP net income (loss) was $(5.3) million or $(0.10) per diluted share for the six months ended June 30, 2008, compared to $11.7 million or $0.19 per diluted share for the same period in 2007.

Non-GAAP net income was $12.0 million or $0.21 per diluted share in the second quarter of 2008, compared to $21.8 million or $0.33 per diluted share for the same period in 2007.

Non-GAAP net income was $24.0 million or $0.41 per diluted share for the six months ended June 30, 2008, down 42% from $41.3 million or $0.63 pre diluted share for the same period in 2007.

Non-GAAP net income is computed by adjusting GAAP net income by the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, as well as other non-recurring charges and gains.

The Company also announced it has acquired privately held Pace Systems Group, Inc. (“Pace Systems Group”) for approximately $21 million in cash plus an additional cash earn out amount which is contingent upon achieving certain performance targets. Pace Systems Group is a print management software company providing practical print MIS and e-commerce. The acquisition is expected to be neutral to non-GAAP earnings in Q3 and slightly accretive in Q4.

“We are pleased with the performance of our balanced product portfolio,” said Guy Gecht, CEO of EFI. “At the same time, tough economic conditions in the US and also within portions of Europe provided a challenging environment. While we expect these conditions to continue, for the third quarter we expect a sequential improvement in both revenues and earnings. In addition, we are looking forward to the opportunities the Pace acquisition affords us to streamline our product portfolio and increase the profitability of our software business.”

Outlook for Q3 2008

• For the third quarter of 2008, the Company expects revenues in the range of $145 million to $150 million.

• For the third quarter of 2008, the Company expects GAAP earnings per share of $0.01 to $0.05.

• For the third quarter of 2008, the Company expects non-GAAP earnings per share of $0.23 to $0.27.

• For the third quarter of 2008, the Company expects a non-GAAP tax rate of approximately 22%.

GAAP net income outlook includes an estimated charge related to non-cash based stock compensation expense. This estimate does not include anticipated charges and amortization of acquisition-related intangibles related to the Pace Systems Group acquisition. This estimate is subject to change.

Reconciliation of non-GAAP to GAAP EPS estimates	Three Months Ended September 30, 2008
Non-GAAP EPS estimate	$	0.23		$	0.27
Amortization of acquisition-related intangibles – pre tax	$	(0.13	)	$	(0.13	)
Stock based compensation and other non recurring charges – pre tax	$	(0.14	)	$	(0.14	)
Tax effect of non-GAAP adjustments	$	0.05		$	0.05
GAAP EPS estimate	$	0.01		$	0.05

EFI will discuss the Company’s financial results by conference call at 2:00 p.m. PDT today. Instructions for listening to the conference call over the Web are available on the investor relations portion of EFI’s website atwww.efi.com.

About our Non-GAAP Net Income and Adjustments

To supplement our consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use a non-GAAP measure of net income that is GAAP net income adjusted to exclude certain recurring and non-recurring costs, expenses and gains. Management believes that our non-GAAP net income provides investors with useful information because it gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating

results. In addition, non-GAAP net income is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with or an alternative for GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income by adjusting GAAP net income with the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, as well as non-recurring charges and gains. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income prepared in accordance with GAAP.

Safe Harbor for Forward Looking Statements

Certain statements in this press release 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. These statements in this press release include: The [Pace] acquisition is expected to be neutral to non-GAAP earnings in Q3 and slightly accretive in Q4.” “We are pleased with the performance of our balanced product portfolio”... “At the same time, tough economic conditions in the US and also within portions of Europe provided a challenging environment. While we expect these conditions to continue, for the third quarter we expect a sequential improvement in both revenues and earnings. In addition, we are looking forward to the opportunities the Pace acquisition affords us to streamline our product portfolio and increase the profitability of our software business.” “For the third quarter of 2008, the Company expects revenues in the range of $145 million to $150 million.” “For the third quarter of 2008, the Company expects GAAP earnings per share of $0.01 to $0.05.” “For the third quarter of 2008, the Company expects non-GAAP earnings per share of $0.23 to $0.27.” “For the third quarter of 2008, the Company expects a non-GAAP tax rate of approximately 22%.” “GAAP net income outlook includes an estimated charge related to non-cash based stock compensation expense. This estimate does not include anticipated charges and amortization of acquisition-related intangibles related to the Pace Systems Group acquisition. This estimate is subject to change.” “In addition, non-GAAP net income is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with or an alternative for GAAP and may be materially different from non-GAAP measures used by other companies.”

Past performance is not necessarily indicative of future results. Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially, or cause a material adverse impact on our results, which include, but are not necessarily limited to, the following: (1) management’s ability to forecast revenues, expenses and earnings, especially on a quarterly basis; (2) unexpected declines in revenues or increases in expenses; (3) any additional costs and expenses related to the investigation into the Company’s past stock option grants and stock option grant practices; (4) the potential adverse impact of litigation relating to the Company’s past stock grants and stock option practices; (5) the possibility of additional litigation and governmental actions relating to our past stock grants and stock option practices; (6) current world-wide financial, economic and political difficulties and downturns, including adverse variations in foreign exchange rates, that could affect demand for our products; (7) a significant decline or delay in demand for our products by any of our important OEM partners; (8) the unpredictability of development schedules and commercialization of the products manufactured and sold by our OEM partners; (9) variations in growth rates or declines in the printing and imaging markets across various geographic regions; (10) changes in

historic customer order patterns, including changes in customer and channel inventory levels; (11) changes in the mix of products sold leading to variations in operating results; (12) the uncertainty of market acceptance of new product introductions; (13) delays in product deliveries that cause quarterly revenues and income to fall significantly short of anticipated levels; (14) competition and/or market factors, which may adversely affect margins; (15) competition in each of our businesses, including competition from products internally developed by EFI’s customers; (16) excess or obsolete inventory and variations in inventory valuation; (17) intense competition in the industrial and commercial digital inkjet market; (18) the uncertainty of continued success in technological advances, including development and implementation of new processes and strategic products; (19) the challenges of obtaining timely, efficient and quality product manufacturing; (20) litigation involving intellectual property rights or other related matters; (21) our ability to successfully integrate acquired businesses, without operational disruption to our existing businesses; (22) the potential that investments in new business strategies and initiatives could disrupt the Company’s ongoing businesses and may present risks not originally contemplated; (23) the potential loss of sales, unexpected costs or adverse impact on relations with customers or suppliers as a result of acquisitions; (24) differences between the financial results as filed with the SEC and the preliminary results included in our earnings press releases due to the complexity in accounting rules; and (25) any other risk factors that may be included from time to time in the Company’s SEC reports.

The statements in this press release are made as of the date of this press release. EFI undertakes no obligation to update information contained in this press release. For further information regarding risks and uncertainties associated with EFI’s businesses, please refer to the section entitled “Factors That Could Adversely Affect Performance” in the Company’s SEC filings, including, but not limited to, its annual report on Form 10-K and its 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 atinvestor.relations@efi.com or EFI’s Investor Relations website athttp://www.efi.com.

About Electronics for Imaging, Inc. / EFI

EFI (www.efi.com) is the world leader in color digital print servers, super-wide format printers and inks, and commercial and enterprise print management solutions. EFI’s award-winning solutions, integrated from creation to print, deliver increased performance, cost savings and productivity. The Company’s robust product portfolio includes Fiery^® digital color print servers; super-wide digital inkjet printers, UV and solvent inks; industrial inkjet printing systems, print production workflow and management information software; and corporate printing solutions. EFI maintains 26 offices worldwide.

Electronics for Imaging, Inc.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Revenue	$	143,846		$	162,441		$	280,450		$	310,272
Cost of revenue		61,868			66,712			121,270			126,202
Gross profit		81,978			95,729			159,180			184,070
Operating expenses:
Research and development		35,794			34,921			72,379			70,674
Sales and marketing		31,667			32,215			60,401			59,786
General and administrative		13,692			17,649			27,195			37,937
Restructuring and severance		(479	)					5,013			—
Amortization of identified intangibles		7,196			8,775			14,392			17,430
Total operating expenses		87,870			93,560			179,380			185,827
Income/Loss from operations		(5,892	)		2,169			(20,200	)		(1,757	)
Interest and other income, net:
Interest and other income		6,396			7,255			14,118			14,506
Interest expense		(830	)		(1,250	)		(2,081	)		(2,500	)
Total interest and other income, net		5,566			6,005			12,037			12,006
Income (loss) before income taxes		(326	)		8,174			(8,163	)		10,249
Benefit from income taxes		213			1,432			2,877			1,492
Net income (loss)	$	(113	)	$	9,606		$	(5,286	)	$	11,741
Fully Diluted EPS calculation
Net income (loss)	$	(113	)	$	9,606		$	(5,286	)	$	11,741
After-tax adjustment of convertible debt-related costs		—			750			—			1,500
Income (loss) for purposes of computing diluted net income per share		(113	)		10,356			(5,286	)		13,241
Net income (loss) per diluted common share	$	(0.00	)	$	0.15		$	(0.10	)	$	0.19
Shares used in diluted per share calculation		52,805			68,688			53,294			68,518

Electronics for Imaging, Inc.

Reconciliation of GAAP Net Income to Non-GAAP Net Income

(In thousands, except per share data) (unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Net income (loss)	$	(113	)	$	9,606		$	(5,286	)	$	11,741
Acquisition and intangible amortization costs		7,196			8,772			14,392			19,126
Stock based compensation expense – Cost of revenue		517			465			1,463			1,110
Stock based compensation expense – Research and development		3,427			2,247			7,406			5,295
Stock based compensation expense – Sales and marketing		1,534			1,024			3,410			2,330
Stock based compensation expense – General and administrative		3,138			1,870			6,250			5,112
Stock Option Investigation Costs		574			6,097			1,634			11,156
Restructuring and severance		(479	)		—			5,043			—
Tax effect of non-GAAP adjustments		(3,797	)		(8,308	)		(10,266	)		(14,543	)
Non-GAAP net income	$	11,997		$	21,773		$	24,046		$	41,327
After-tax adjustment of convertible debt-related expense		512			750			1,262			1,500
Income for purposes of computing diluted non-GAAP net income per share	$	12,509		$	22,523		$	25,308		$	42,827
Non-GAAP net income per diluted common share	$	0.21		$	0.33		$	0.41		$	0.63
Shares used in per share calculation		59,871			68,688			61,738			68,518

Electronics for Imaging, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands)

	June 30, 2008		December 31, 2007
Assets
Cash, cash equivalents and short-term investments	$	238,411	$	499,852
Accounts receivable, net		90,316		101,955
Inventories, net		44,864		39,949
Other current assets		22,588		15,844
Total current assets		396,179		657,600
Property and equipment, net		61,753		57,604
Restricted investments		88,580		88,580
Goodwill		212,309		211,780
Intangible assets, net		72,256		86,554
Other assets		48,057		55,621
Total assets	$	879,134	$	1,157,739
Liabilities & Stockholders’ equity
Accounts payable	$	45,897	$	42,262
Convertible debt				240,000
Accrued and other liabilities		68,113		96,765
Income taxes payable		17,502		7,896
Total current liabilities		131,512		386,923
Long term taxes payable		31,045		26,820
Total liabilities		162,557		413,743
Total stockholders’ equity		716,577		743,996
Total liabilities and stockholders’ equity	$	879,134	$	1,157,739

Revenue Break-Down

(in thousands) (unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2008		2007		2008		2007
Revenue by Product
Controller products	$	72,193	$	91,579	$	140,511	$	178,214
Inkjet products		57,995		54,837	$	111,380	$	102,931
Professional printing applications		13,658		16,025	$	28,559	$	29,127
Total	$	143,846	$	162,441	$	280,450	$	310,272
Revenue by Geographic Area
Americas	$	71,921	$	85,970	$	143,556	$	165,623
EMEA		54,172		60,687	$	102,583	$	107,859
Japan		12,646		11,013	$	24,469	$	28,209
All other		5,107		4,771	$	9,842	$	8,581
Total	$	143,846	$	162,441	$	280,450	$	310,272