Electronics For Imaging (EFII) 8-K Seven consecutive quarters of double-digit revenue growth

Long-Term Financial Model

Long-Term Financial Model

Vincent Pilette

CFO

Exhibit 99.1

What Do You Need to Know?

What Do You Need to Know?

We Have Been Delivering on the Growth Opportunities…

We Have Been Delivering on the Growth Opportunities…

•

Great momentum going into Q4’11

•

Seven consecutive quarters of double-digit revenue growth

•

Four consecutive quarters of double-digit operating margin

•

Reiterating Q4 outlook of $155-160M revenue and $0.31-0.34 EPS

•

Solid revenue growth drivers

•

Plethora of new product introductions in 2

nd

half of 2011

•

Three tuck-in acquisitions closed in 2011

•

Record recurring revenue, ink and software maintenance

•

Multiple drivers of profit growth

•

Inkjet gross margin back to 40% driven by high quality products

•

APPS gross margin expansion as a result of higher sales volume

•

OPEX efficiencies driving towards business target of 40-44% of revenue

•

Active capital management

•

Working capital improvements, growing cash from operations

•

Increased funnel of acquisitions and stock buy-back strategy

2

This information speaks as of the date hereof and is not subject

to update.

EFI Total Addressable Market

EFI Total Addressable Market

Addressable Market is Growing at High-Single Digit

Addressable Market is Growing at High-Single Digit

Segments

Estimated

Market

CAGR

(’11-14)

Digital Controllers

•

Medium/high-end Controllers

$1.8B

$0.5B

3-5%

Print Production Software

•

Creative Software

•

Offset workflow

•

Print MIS –

Production

•

Print MIS –

Packaging

•

Web-to-Print

•

Other

$5.0B

$0.3B

$0.3B

$0.3B

4-5%

4-5%

~8%

S/WF Digital Printers

•

SWF Printer Ink

•

WF Printer Ink

$1.3B

10-12%

Labeling Digital Printers

•

Digital Printer ink

•

Conversion-ready Analog

$0.7B

13-15%

(1) SOURCE: I.T. Strategies, Info-Trends, EFI business intelligence

•

Today, EFI’s direct

addressable market

amounts to $3.5B growing

at ~8% CAGR

•

#1 market share in high-

end controllers

•

#1 market share in 

business automation

software for commercial

printers

•

Plethora of new product

introductions in Inkjet

3

(2)  The 2011E information speaks as of the date hereof and is not subject to update.

Historical Revenue Trend & FY 2011 Estimate

Historical Revenue Trend & FY 2011 Estimate

Revenue Mix is Changing and Recurring Revenue is Growing

Revenue Mix is Changing and Recurring Revenue is Growing

4

Two years of double-digit

revenue growth, on track to

pass  record year (2007)

Driving revenue mix and

diversification of portfolio

Recurring revenue growing

at 11% CAGR (‘07 –

’11),

43% of non-Fiery revenue, 

23% of total revenue

(1) 2011E based on Q4’11 midpoint of company’s outlook (Revenue of $155-160M and non-GAAP EPS of $0.31-0.34).

(2) The 2011E information speaks as of the date hereof and is not subject to update.

~

~

~

3

2

1

Non-GAAP Gross Margin % Trend

Non-GAAP Gross Margin % Trend

Expanding Gross Margin While Diversifying Gross Profit Sources

Expanding Gross Margin While Diversifying Gross Profit Sources

5

(1) 2011E based on Q4’11 midpoint of company’s outlook (Revenue of $155-160M and non-GAAP EPS of $0.31-0.34).

(2) Non-GAAP numbers have been adjusted to exclude certain items.  See GAAP to non-GAAP reconciliation and our use of non-GAAP information.

(3) The 2011E information speaks as of the date hereof and is not subject to update.

Cost Structure Trend

Cost Structure Trend

Lowering Spend as % of Revenue

Lowering Spend as % of Revenue

•

OPEX efficiencies driving towards lower % of revenue

•

OPEX balance between technology investment and direct sales capacity

•

Infrastructure savings leading to higher % of innovation and variable spend

6

(2) Non-GAAP numbers have been adjusted to exclude certain items.  See GAAP to non-GAAP reconciliation and our use of non-GAAP information.

(1) 2011E based on Q4’11 midpoint of company’s outlook (Revenue of $155-160M and non-GAAP EPS of $0.31-0.34).

(3) The 2011E information speaks as of the date hereof and is not subject to update.

Non-GAAP P&L

Non-GAAP P&L

Returning to Historical Operating Profit Margin Performance

Returning to Historical Operating Profit Margin Performance

2007

2007

2008

2008

2009

2009

2010

2010

2011E

2011E

Revenue

YoY %

$621M

+10%

$560M

-10%

$401M

-28%

$504M

+26%

$586M

+16%

GM %

58.5%

57.1%

53.0%

53.8%

~56%

OPEX

% of  Rev

$285M

46%

$278M

50%

$230M

57%

$235M

47%

~$263M

~45%

OP

% of  Rev

$78M

12.6%

$42M

7.5%

($18M)

(4.5%)

$36M

7.1%

~$66M

~11%

EPS

$1.19

$0.74

($0.22)

$0.59

$1.08

•

2011 return to double

digit operating profit

margin

•

Moving towards 

sustainable profit drop

rate of ~25%+ on

annual basis

•

2011E OP and EPS

growth >  80% YoY

driven by  gross margin

improvement  and

increased spend

productivity

7

(1) 2011E based on Q4’11 midpoint of company’s outlook (Revenue of $155-160M and non-GAAP EPS of $0.31-0.34).

(3) The 2011E information speaks as of the date hereof and is not subject to update.

(2) Non-GAAP numbers have been adjusted to exclude certain items.  See GAAP to non-GAAP reconciliation and our use of non-GAAP information.

Balance Sheet Optimization

Balance Sheet Optimization

Growing Cash from Operations

Growing Cash from Operations

Key

Balance

Sheet

Figures

Q3’07

Q3’08

Q3’09

Q3’10

Q3’11

Total

Cash

&

Investments*

$550M

$202M

$270M

$207M

$203M

YTD Cash Flow from

Operations

% of Revenue

$54M

12%

$25M

6%

($26M)

--

$19M

5%

$43M

10%

Working Capital (Days)

52.5

63.7

80.7

61.0

59.2

Accounts Receivable

(net)

$97M

$97M

$80M

$86M

$91M

DSO

56.5

61.4

72.5

61.0

57.2

Net Inventory

$37M

$48M

$44M

$45M

$47M

Inventory Turns

7.0

5.3

4.5

5.5

5.4

Total Assets

$1,199M

$865M

$731M

$685M

$720M

* Excludes $56.9 million long term restricted investments

8

Capital Allocation Strategy

Capital Allocation Strategy

•

Continued focus on cash generation 

(~1 x OP on annual basis)

•

Use

of

cash:

the

Board

and

Management will continue to evaluate

options, including:

-

M&A-

strengthening our existing segments,

with accretive deals

-

Continue to

reduce the shares of common

stock outstanding

-

Accumulate cash

•

Currently

we

are

not

focused

on:

-

Transformative acquisition

-

Dividend

9

The 2011E information speaks as of the date hereof and is not subject to update.

Non-GAAP Long-Term Financial Model

Non-GAAP Long-Term Financial Model

Targeting 12-15% Operating Profit Margin

Targeting 12-15% Operating Profit Margin

2011

LT Model

L-T Growth

Gross

Margin

OPEX

Op Margin

Fiery

GDP+

66% -

68%

Inkjet

10% -15%

~ 40%

APPS

10% -

20%

> 70%

Total

~ 10%

55%-

57%

40%-

44%

12%-

15%

53-55%

40-44%

10-14%

~10%

2010 LT model

10

Raising long term APPS

revenue growth target  to

10-20% YoY

Raising EFI long-term GM

rate to 55-57% driven by

APPS GM expansion and

revenue mix

Raising  EFI long-term

operating profit margin 

range to 12-15%  of revenue

1

1

2

2

3

3

The 2011E information speaks as of the date hereof and is not subject to update.

6-10%

6-10%

GDP+

66-68%

~40%

67-69%

2010 LT model

2010 LT model

2010 LT model

Appendix

Appendix

About our Non-GAAP Net Income

About our Non-GAAP Net Income

and Adjustments

and Adjustments

This information speaks as of the date hereof and is not subject

to update.

12

Q3 2011 Results Summary 

Q3 2011 Results Summary 

.

This information speaks of the date hereof and is not subject to

update.

$M

Q3 2011

Q2 2011

% Change

Q3 2010

% Change

NON-GAAP

Revenue

147.3

$      

141.2

$      

4%

129.0

$      

14%

Operating Profit

16.5

14.1

17%

11.1

49%

Operating Profit %

11.2%

10.0%

1.2 pts

8.6%

2.6 pts

Net Income

11.6

11.3

3%

10.7

8%

EPS

0.25

$        

0.23

$        

9%

0.23

$        

9%

GAAP

GAAP Net Income

6.1

3.6

69%

13.4

(54%)

GAAP EPS

0.13

$        

0.07

$        

86%

0.29

$        

(55%)

Non-GAAP numbers have been adjusted to exclude certain items.  See GAAP to non-GAAP reconciliation and our use of non-GAAP information.

13

Reconciliation of GAAP to Non-GAAP

Reconciliation of GAAP to Non-GAAP

•

This information speaks of the date hereof and is not subject to update.

•

Non-GAAP numbers have been adjusted to exclude certain items.  See our description of our use of non-GAAP information.

14

GAAP to Non-GAAP Reconciliation ($M)

Q110

Q210

Q310

Q410

FY10

Q111

Q211

Q311

FY11 YTD

GAAP

Net Income (Loss)

(11.4)

(2.5)

13.4

8.0

7.5

6.2

3.6

6.1

16.0

EPS

(0.25)

$  

(0.06)

$  

0.29

$    

0.17

$    

0.16

$    

0.13

$    

0.07

$    

$0.13

0.33

$      

ADJUSTMENTS

COGS: Excess Solvent Inventories &

End of Life Purchases

-

2.3

-

-

2.3

-

-

-

$      

-

COGS: Stock Based Compensation Expense

0.3

0.3

0.3

0.2

1.0

0.2

0.4

0.7

$      

1.3

OPEX: Stock Based Compensation Expense

3.7

3.0

4.6

3.6

14.9

5.0

6.7

4.6

$      

16.2

OPEX: Amortization of Identified Intangibles

2.9

2.9

3.4

3.2

12.4

3.4

3.0

2.3

$      

8.7

OPEX: Acquisition-Related Transaction Costs

0.6

0.5

0.1

-

1.2

0.6

0.2

0.7

$      

1.6

OPEX: Change in Fair Value of

Contingent Consideration

-

-

-

-

-

-

-

1.5

$      

1.5

OPEX: Restructuring and Other

2.0

1.0

1.0

0.3

4.3

1.4

0.4

0.6

$      

2.3

OI&E: Gain on Sale of Minority Investment

in a Privately-Held Company

-

-

-

-

-

-

-

(2.9)

$     

(2.9)

Tax Effect of Non-GAAP Adjustments

1.7

(3.4)

(12.0)

(2.0)

(15.7)

(3.3)

(3.0)

(2.0)

$     

(8.3)

NON-GAAP

Non-GAAP Net Income (Loss)

(0.1)

$    

4.0

$      

10.7

$    

13.3

$    

27.9

$    

13.5

$    

11.3

$    

11.6

$    

36.4

$      

Non-GAAP EPS

-

$      

0.09

$    

0.23

$    

0.28

$    

0.59

$    

0.28

$    

0.23

$    

$0.25

0.75

$      

Share Count & Non-GAAP EPS

Share Count & Non-GAAP EPS

Non-GAAP numbers have been adjusted to exclude certain items.  See GAAP to non-GAAP reconciliation and our use of non-GAAP information.

15