8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

 
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
January 27, 2004

ELECTRONICS FOR IMAGING, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-18805	94-3086355
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

303 Velocity Way, Foster City, CA 94404
(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code: (650) 357-3500

(Former name or former address, if changed since last report)

TABLE OF CONTENTS

	Item 7. Financial Statements and Exhibits
	Item 12. Results of Operations and Financial Condition
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1

Item 7. Financial Statements and Exhibits

(c)  Exhibits

The following exhibits are filed herewith:

Exhibit
99.1	Text of Press Release, dated January 27, 2004, titled “Electronics For Imaging Tops Fourth Quarter Estimates”

Item 12. Results of Operations and Financial Condition

The following information, including the Exhibit 99.1 attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

On January 27, 2004, Electronics for Imaging, Inc. issued a press release regarding its financial results for its fiscal year 2003 ended December 31, 2003. The press release is filed as an exhibit to this current report and is incorporated herein by reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Electronics for Imaging, Inc.
Date: January 27, 2004	By:	/s/ Joseph Cutts Joseph Cutts Chief Financial Officer

EXHIBIT INDEX
99.1	Text of Press Release, dated January 27, 2004, titled “Electronics For Imaging Tops Fourth Quarter Estimates”

EX-99.1 3 f95976exv99w1.txt EXHIBIT 99.1 . . . EXHIBIT 99.1 EFI Fourth Quarter 2003 Results

For more information: Investor Relations - -------------------- ------------------ Joseph Cutts JoAnn Horne Chief Financial Officer Market Street Partners Electronics For Imaging 415-321-2455 650-357-3500

ELECTRONICS FOR IMAGING TOPS FOURTH QUARTER ESTIMATES Foster City Calif. - January 27, 2004 - Electronics For Imaging (EFI)(Nasdaq: EFII), the world leader in digital imaging and print management solutions for commercial and enterprise printing, announced today that, for the quarter ended December 31, 2003, revenues were $107.9 million as compared to $90.7 million for the same quarter in 2002. For the twelve months ended December 31, 2003, revenues were $379.6 million as compared to $350.2 for the same period in 2002. GAAP net income was $1.1 million or $0.02 per diluted share in the fourth quarter of 2003, compared to $7.9 million, or $0.14 per diluted share for the same period in 2002. For the twelve months ended December 31, 2003, GAAP net income increased to $26.5 million or $0.48 per diluted share, from net income of $16.0 million, or $0.29 per diluted share, for the same period in 2002. Pro forma net income was $14.9 million or $0.27 per diluted share in the fourth quarter of 2003, an increase of 71% when compared to $8.7 million, or $0.16 per diluted share for the same period in 2002. For the twelve months ended December 31, 2003, pro forma net income increased 99% to $43.9 million or $0.80 per diluted share, from pro forma net income of $22.1 million, or $0.40 per diluted share in 2002. For the fourth quarter 2003 and the twelve months ended December, 31 2003, we computed pro forma net income by adjusting GAAP net income by the write-off of in-process research and development and the amortization of acquisition-related intangibles as well as charges related to the Company's prior minority interest in Printcafe, and gains, net of expenses, related to intellectual property litigation. As of December 31, 2003, the company's total assets were $1.01 billion, up from $727.1 million reported as of December 31, 2002. Total liabilities as of December 31, 2003 were $358.8 million, up from $93.0 million as of December 31, 2002. "We are delighted to report our best quarterly pro forma results in over three years, driven by exceptional demand in our server business, especially for our new, high performance S-series Fiery servers", said EFI CEO Guy Gecht. "We finished 2003 with an encouraging level of business activity and we've started 2004 with a strong growth outlook. In addition to our core server business, we see great opportunities in our newest market-- Professional Printing Applications-- in which we have a compelling portfolio of high value print management and workflow software solutions that increase productivity, competitiveness and profitability." The Company currently anticipates the following results in the first quarter of 2004: o Revenue in the range of $102 to $104 million. o GAAP diluted earnings per share of $0.16 to $0.17 after the amortization of acquisition-related intangibles. o Pro forma diluted earnings per share of $0.20 to $0.21. o Pro forma diluted earnings per share of $0.19 to $0.20 including the potential share count dilution and reduction of interest expense and amortized issuance EFI Fourth Quarter 2003 Results costs related to our convertible debt, and excluding the amortization of acquisition-related intangibles. In the second quarter of 2003, EFI issued $240 million of convertible debentures with a coupon rate of 1.50%. The quarterly pre-tax interest expense related to the bonds is $0.9 million and the related quarterly pre-tax amortization of issuance costs is $0.3 million. Under certain circumstances, (see below "Events that could cause our debt to convert") our debt may be converted to approximately 9.1 million shares of common stock. During the quarter in which the debt holder has the right to convert, the associated shares will be considered outstanding for that entire quarter, and the full 9.1 million shares will be included in the calculation of our diluted earnings per share. Also, once the debt holder has right to convert, the interest expense and the amortized issuance costs, net of associated taxes, related to the bonds would be excluded from the calculation of diluted earning per share. Whether the bonds become convertible is a function of EFI's stock price and is outside the control of the company. 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 at www.efi.com. Events that could cause our debt to convert Holders may convert their debentures into shares of our common stock prior to stated maturity under the following circumstances: (1) during any fiscal quarter (beginning with the quarter ending September 30, 2003) if the sale price of our common stock for at least 20 consecutive trading days in the 30 consecutive trading-day period ending on the last trading day of the immediately preceding fiscal quarter exceeds 120% of the conversion price on that 30th trading day; (2) during any 5 consecutive trading day period after any 5 consecutive trading period in which the average trading price of the debentures during the measurement period was less than 97% of the average conversion value and the conversion value for each day of such period was less than $900 per $1,000 principal amount of the debentures; (3) upon the occurrence of specified corporate transactions; or (4) if we have called the debentures for redemption. For more information, please see our recently filed S-3. About our Pro Forma Net Income and Adjustments To supplement our consolidated financial results prepared under generally accepted accounting principles ("GAAP"), we use a pro forma measure of net income that is GAAP net income adjusted to exclude certain costs, expenses and gains. Our pro forma net income gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, pro forma 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 pro forma measures used by other companies. We compute pro forma net income by adjusting GAAP net income with the impact of the write-off of in-process research and development, the amortization of acquisition-related intangibles, and other non-recurring charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income prepared in accordance with GAAP. EFI Fourth Quarter 2003 Results Safe Harbor for Forward Looking Statements The statements: The Company currently anticipates the following results in the first quarter of 2004: o Revenue in the range of $102 to $104 million. o GAAP diluted earnings per share of $0.16 to $0.17 after the amortization of acquisition-related intangibles. o Pro forma diluted earnings per share of $0.20 to $0.21. o Pro forma diluted earnings per share of $0.19 to $0.20 including the potential share count dilution and reduction of interest expense and amortized issuance costs related to our convertible debt, and excluding the amortization of acquisition related intangibles. and "We are delighted to report our best quarterly pro forma results in over three years, driven by exceptional demand in our server business, especially for our new, high performance S-series Fiery servers, said EFI CEO Guy Gecht. "We finished 2003 with an encouraging level of business activity and we've started 2004 off with a strong growth outlook. In addition to our core server business, we see great opportunities in our newest market-- Professional Printing Applications-- in which we have a compelling portfolio of high value print management and workflow software solutions that increase productivity, competitiveness and profitability. " are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not necessarily limited to, the following: (1) Management's ability to forecast revenues and control expenses, especially on a quarterly basis, continues to be a challenge. Unexpected declines in revenue without a corresponding and timely decline in expenses could have a material adverse effect on results of operations; (2) current world wide financial/economic difficulties continue including variations in foreign exchange rates; (3) variations in growth rates or declines in the printing and imaging market across various geographic regions may cause a material impact in our results; (4) changes in historic customer order patterns, including changes in customer and channel inventory levels may cause a material impact in our results; (5) changes in the mix of products sold leads to variations in results; (6) market acceptance of new products and contribution to EFI's revenue cannot be assured; (7) delays in product delivery can cause quarterly revenues and income to fall significantly short of anticipated levels; (8) competition and/or market factors in the various markets may pressure EFI to reduce prices on certain products; (9) competition with products internally developed by EFI's customers may result in declines in EFI sales and revenues; (10) excess or obsolete inventory and variations in inventory valuation may cause a material impact in our results; (11) continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments may not be assured; (12) timely and qualitative execution in the manufacturing of products may not be assured; (13) litigation involving intellectual property or other matters may cause a material impact in our results; (14) our ability to adequately service our debt and dilution of earnings if the company's convertible debenture is treated on an "as converted basis" for purposes of calculating diluted earnings per share; (15) other risk factors listed from time to time in the company's SEC reports. EFI undertakes no obligation to update information EFI Fourth Quarter 2003 Results contained in this release. For further information regarding risks and uncertainties associated with EFI's business, please refer to the Risk Factors section (entitled "Factors That Could Adversely Affect Performance") of EFI Corporation's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting EFI Corporation's Investor Relations Department at 650-357-3828 or email at investor.relations@efi.com or EFI's Investor Relations website at http://www.efi.com. About Electronics For Imaging Electronics For Imaging, Inc. () is the world leader in digital imaging and print management solutions for commercial and enterprise printing. EFI's award-winning technologies offer document management tools from creation to print, including high fidelity color and black and white Fiery(R) print servers that can output up to 2000 ppm; powerful production workflow and print management information software solutions for increased performance and cost efficiency; and an array of business-critical enterprise and mobile printing solutions. EFI maintains 25 offices worldwide. EFI Fourth Quarter 2003 Results ELECTRONICS FOR IMAGING, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

THREE MONTHS ENDED SIX MONTHS ENDED DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 Revenue $107,853 $ 90,709 $ 379,587 $ 350,185 Cost of revenue 38,915 40,814 148,054 167,685 -------- -------- --------- --------- Gross profit 68,938 49,895 231,533 182,500 -------- -------- --------- --------- Research and development 26,890 21,551 96,697 89,973 Sales and marketing 16,938 13,041 61,597 50,624 General and administrative 6,180 5,420 21,690 21,778 Amortization of identified intangibles and other acquisition-related charges 14,462 1,145 19,670 4,391 -------- -------- --------- --------- Total operating expenses 64,470 41,157 199,654 166,766 -------- -------- --------- --------- Income from operations 4,468 8,738 31,879 15,734 Interest and other income, net 1,509 2,502 8,603 7,077 Litigation settlement income(charges) 840 - 2,408 - Loss on equity investment (671) - (1,562) - -------- -------- --------- --------- Income before income taxes 6,146 11,240 41,328 22,811 Provision for income taxes (5,080) (3,372) (14,820) (6,843) -------- -------- --------- --------- Net income $ 1,066 $ 7,868 $ 26,508 $ 15,968 ======== ======== ========= ========= Shares used in per share calculation 55,671 55,024 54,839 54,852 ======== ======== ========= ========= Net income per diluted common share $ 0.02 $ 0.14 $ 0.48 $ 0.29 ======== ======== ========= ========= RECONCILIATION OF REPORTED GAAP NET INCOME TO PRO FORMA NET INCOME Net income $ 1,066 $ 7,868 $ 26,508 $ 15,968 In process research and development expense 12,000 - 13,220 - Amortization of acquisition related intangibles 2,462 1,145 6,450 4,391 Litigation settlement income(charges) (840) - (2,408) 4,409 Loss on equity investment 671 - 1,562 - Tax effect of pro forma adjustments (438) (343) (1,420) (2,640) -------- -------- --------- --------- Pro forma net income $ 14,921 $ 8,670 43,912 $ 22,128 ======== -------- ========= ========= Shares used in per share calculation 55,671 55,024 54,839 54,852 ======== ======== ========= ========= Pro forma net income per diluted common share $ 0.27 $ 0.16 $ 0.80 $ 0.40 ======== ======== ========= =========

EFI Fourth Quarter 2003 Results ELECTRONICS FOR IMAGING, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED)

DECEMBER 31, DECEMBER 31, 2003 2002* ASSETS Cash, cash equivalents and short-term investments $ 624,111 $ 498,370 Restricted short-term investments 69,669 -- Accounts receivable, net 53,317 42,267 Inventories 7,989 4,125 Other current assets 28,718 18,053 --------- --------- Total current assets 783,804 562,815 Property and equipment, net 49,095 53,187 Restricted investments 43,080 43,080 Goodwill 67,166 43,552 Intangible assets, net 51,032 17,386 Other assets 16,484 7,086 ---------- --------- Total assets $1,013,661 $ 727,106 ========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 17,995 $ 13,067 Accrued and other liabilities 67,386 47,353 Income taxes payable 33,231 32,341 --------- --------- Total current liabilities 118,612 92,761 --------- --------- Long-term obligations 240,236 278 --------- --------- Total liabilities 358,848 93,039 --------- --------- Stockholders' equity: Common stock 620 590 Treasury stock (159,077) (99,959) Additional paid-in-capital 326,761 272,456 Retained earnings 486,509 460,980 --------- --------- Total stockholders' equity 654,813 634,067 --------- --------- Total liabilities and stockholders' equity $1,013,661 $ 727,106 ========== ========= *Amounts derived from 2002 audited financial statements

EFI Fourth Quarter 2003 Results ELECTRONICS FOR IMAGING, INC. REVENUE BREAK-DOWN (IN THOUSANDS) (UNAUDITED)

THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 Revenue by product Stand-alone Color Servers $50,735 $43,620 $155,161 $164,741 Embedded Color Solutions 25,059 24,301 124,832 98,108 Digital Black-and-White Solutions 12,803 11,393 38,891 45,366 Other Sources 19,256 11,395 60,703 41,970 ------ ------ ------ ------ Total $107,853 $90,709 $379,587 $350,185 ======== ======= ======== ======== Shipments by geographic area North America $58,605 $46,792 $192,326 $184,891 Europe 29,479 31,389 113,914 108,978 Japan 16,595 7,850 57,231 38,541 Rest of World 3,174 4,678 16,116 17,775 ----- ----- ------ ------ Total $107,853 $90,709 $379,587 $350,185 ======== ======= ======== ========

-----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                               .
                                                                               .
                                                                               .
                                                                    EXHIBIT 99.1
EFI Fourth Quarter 2003 Results



For more information:                                Investor Relations
- --------------------                                 ------------------
                                                  
Joseph Cutts                                         JoAnn Horne
Chief Financial Officer                              Market Street Partners
Electronics For Imaging                              415-321-2455
650-357-3500



             ELECTRONICS FOR IMAGING TOPS FOURTH QUARTER ESTIMATES

Foster City Calif. - January 27, 2004 - Electronics For Imaging (EFI)(Nasdaq:
EFII), the world leader in digital imaging and print management solutions for
commercial and enterprise printing, announced today that, for the quarter ended
December 31, 2003, revenues were $107.9 million as compared to $90.7 million for
the same quarter in 2002. For the twelve months ended December 31, 2003,
revenues were $379.6 million as compared to $350.2 for the same period in 2002.

GAAP net income was $1.1 million or $0.02 per diluted share in the fourth
quarter of 2003, compared to $7.9 million, or $0.14 per diluted share for the
same period in 2002. For the twelve months ended December 31, 2003, GAAP net
income increased to $26.5 million or $0.48 per diluted share, from net income of
$16.0 million, or $0.29 per diluted share, for the same period in 2002.

Pro forma net income was $14.9 million or $0.27 per diluted share in the fourth
quarter of 2003, an increase of 71% when compared to $8.7 million, or $0.16 per
diluted share for the same period in 2002. For the twelve months ended December
31, 2003, pro forma net income increased 99% to $43.9 million or $0.80 per
diluted share, from pro forma net income of $22.1 million, or $0.40 per diluted
share in 2002.

For the fourth quarter 2003 and the twelve months ended December, 31 2003, we
computed pro forma net income by adjusting GAAP net income by the write-off of
in-process research and development and the amortization of acquisition-related
intangibles as well as charges related to the Company's prior minority interest
in Printcafe, and gains, net of expenses, related to intellectual property
litigation.

As of December 31, 2003, the company's total assets were $1.01 billion, up from
$727.1 million reported as of December 31, 2002. Total liabilities as of
December 31, 2003 were $358.8 million, up from $93.0 million as of December 31,
2002.

"We are delighted to report our best quarterly pro forma results in over three
years, driven by exceptional demand in our server business, especially for our
new, high performance S-series Fiery servers", said EFI CEO Guy Gecht. "We
finished 2003 with an encouraging level of business activity and we've started
2004 with a strong growth outlook. In addition to our core server business, we
see great opportunities in our newest market-- Professional Printing
Applications-- in which we have a compelling portfolio of high value print
management and workflow software solutions that increase productivity,
competitiveness and profitability."

The Company currently anticipates the following results in the first quarter of
2004:

o    Revenue in the range of $102 to $104 million.

o    GAAP diluted earnings per share of $0.16 to $0.17 after the amortization of
     acquisition-related intangibles.

o    Pro forma diluted earnings per share of $0.20 to $0.21.

o    Pro forma diluted earnings per share of $0.19 to $0.20 including the
     potential share count dilution and reduction of interest expense and
     amortized issuance

EFI Fourth Quarter 2003 Results


        costs related to our convertible debt, and excluding the amortization of
        acquisition-related intangibles.

In the second quarter of 2003, EFI issued $240 million of convertible debentures
with a coupon rate of 1.50%. The quarterly pre-tax interest expense related to
the bonds is $0.9 million and the related quarterly pre-tax amortization of
issuance costs is $0.3 million. Under certain circumstances, (see below "Events
that could cause our debt to convert") our debt may be converted to
approximately 9.1 million shares of common stock. During the quarter in which
the debt holder has the right to convert, the associated shares will be
considered outstanding for that entire quarter, and the full 9.1 million shares
will be included in the calculation of our diluted earnings per share. Also,
once the debt holder has right to convert, the interest expense and the
amortized issuance costs, net of associated taxes, related to the bonds would be
excluded from the calculation of diluted earning per share. Whether the bonds
become convertible is a function of EFI's stock price and is outside the control
of the company.

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 at www.efi.com.

Events that could cause our debt to convert

Holders may convert their debentures into shares of our common stock prior to
stated maturity under the following circumstances: (1) during any fiscal quarter
(beginning with the quarter ending September 30, 2003) if the sale price of our
common stock for at least 20 consecutive trading days in the 30 consecutive
trading-day period ending on the last trading day of the immediately preceding
fiscal quarter exceeds 120% of the conversion price on that 30th trading day;
(2) during any 5 consecutive trading day period after any 5 consecutive trading
period in which the average trading price of the debentures during the
measurement period was less than 97% of the average conversion value and the
conversion value for each day of such period was less than $900 per $1,000
principal amount of the debentures; (3) upon the occurrence of specified
corporate transactions; or (4) if we have called the debentures for redemption.
For more information, please see our recently filed S-3.

About our Pro Forma Net Income and Adjustments

To supplement our consolidated financial results prepared under generally
accepted accounting principles ("GAAP"), we use a pro forma measure of net
income that is GAAP net income adjusted to exclude certain costs, expenses and
gains. Our pro forma net income gives an indication of our baseline performance
before gains, losses or other charges that are considered by management to be
outside of our core operating results. In addition, pro forma 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 pro forma measures
used by other companies. We compute pro forma net income by adjusting GAAP net
income with the impact of the write-off of in-process research and development,
the amortization of acquisition-related intangibles, and other non-recurring
charges and gains. The presentation of this additional information should not be
considered in isolation or as a substitute for net income prepared in accordance
with GAAP.

EFI Fourth Quarter 2003 Results


Safe Harbor for Forward Looking Statements
The statements:
The Company currently anticipates the following results in the first quarter of
2004:

     o    Revenue in the range of $102 to $104 million.

     o    GAAP diluted earnings per share of $0.16 to $0.17 after the
          amortization of acquisition-related intangibles.

     o    Pro forma diluted earnings per share of $0.20 to $0.21.

     o    Pro forma diluted earnings per share of $0.19 to $0.20 including the
          potential share count dilution and reduction of interest expense and
          amortized issuance costs related to our convertible debt, and
          excluding the amortization of acquisition related intangibles.

and "We are delighted to report our best quarterly pro forma results in over
three years, driven by exceptional demand in our server business, especially for
our new, high performance S-series Fiery servers, said EFI CEO Guy Gecht. "We
finished 2003 with an encouraging level of business activity and we've started
2004 off with a strong growth outlook. In addition to our core server business,
we see great opportunities in our newest market-- Professional Printing
Applications-- in which we have a compelling portfolio of high value print
management and workflow software solutions that increase productivity,
competitiveness and profitability. " are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities and Exchange Act of 1934, as amended, and are subject to
certain risks and uncertainties that could cause actual results to differ
materially, including, but not necessarily limited to, the following: (1)
Management's ability to forecast revenues and control expenses, especially on a
quarterly basis, continues to be a challenge. Unexpected declines in revenue
without a corresponding and timely decline in expenses could have a material
adverse effect on results of operations; (2) current world wide
financial/economic difficulties continue including variations in foreign
exchange rates; (3) variations in growth rates or declines in the printing and
imaging market across various geographic regions may cause a material impact in
our results; (4) changes in historic customer order patterns, including changes
in customer and channel inventory levels may cause a material impact in our
results; (5) changes in the mix of products sold leads to variations in results;
(6) market acceptance of new products and contribution to EFI's revenue cannot
be assured; (7) delays in product delivery can cause quarterly revenues and
income to fall significantly short of anticipated levels; (8) competition and/or
market factors in the various markets may pressure EFI to reduce prices on
certain products; (9) competition with products internally developed by EFI's
customers may result in declines in EFI sales and revenues; (10) excess or
obsolete inventory and variations in inventory valuation may cause a material
impact in our results; (11) continued success in technological advances,
including development and implementation of new processes and strategic products
for specific market segments may not be assured; (12) timely and qualitative
execution in the manufacturing of products may not be assured; (13) litigation
involving intellectual property or other matters may cause a material impact in
our results; (14) our ability to adequately service our debt and dilution of
earnings if the company's convertible debenture is treated on an "as converted
basis" for purposes of calculating diluted earnings per share; (15) other risk
factors listed from time to time in the company's SEC reports. EFI undertakes no
obligation to update information



EFI Fourth Quarter 2003 Results


contained in this release. For further information regarding risks and
uncertainties associated with EFI's business, please refer to the Risk Factors
section (entitled "Factors That Could Adversely Affect Performance") of EFI
Corporation's SEC filings, including, but not limited to, its annual report on
Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by
contacting EFI Corporation's Investor Relations Department at 650-357-3828 or
email at investor.relations@efi.com or EFI's Investor Relations website at
http://www.efi.com.

About Electronics For Imaging
Electronics For Imaging, Inc. () is the world leader in digital
imaging and print management solutions for commercial and enterprise printing.
EFI's award-winning technologies offer document management tools from creation
to print, including high fidelity color and black and white Fiery(R) print
servers that can output up to 2000 ppm; powerful production workflow and print
management information software solutions for increased performance and cost
efficiency; and an array of business-critical enterprise and mobile printing
solutions. EFI maintains 25 offices worldwide.

EFI Fourth Quarter 2003 Results

ELECTRONICS FOR IMAGING, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)



                                                           THREE MONTHS ENDED             SIX MONTHS ENDED
                                                               DECEMBER 31,                  DECEMBER 31,
                                                         2003           2002            2003            2002
                                                                                         
Revenue                                                $107,853       $ 90,709       $ 379,587       $ 350,185

Cost of revenue                                          38,915         40,814         148,054         167,685
                                                       --------       --------       ---------       ---------
          Gross profit                                   68,938         49,895         231,533         182,500
                                                       --------       --------       ---------       ---------
Research and development                                 26,890         21,551          96,697          89,973
Sales and marketing                                      16,938         13,041          61,597          50,624
General and administrative                                6,180          5,420          21,690          21,778
Amortization of identified intangibles and other
     acquisition-related charges                         14,462          1,145          19,670           4,391
                                                       --------       --------       ---------       ---------
          Total operating expenses                       64,470         41,157         199,654         166,766
                                                       --------       --------       ---------       ---------
Income from operations                                    4,468          8,738          31,879          15,734
Interest and other income, net                            1,509          2,502           8,603           7,077
Litigation settlement income(charges)                       840              -           2,408               -
Loss on equity investment                                  (671)             -          (1,562)              -
                                                       --------       --------       ---------       ---------
          Income before income taxes                      6,146         11,240          41,328          22,811
Provision for income taxes                               (5,080)        (3,372)        (14,820)         (6,843)
                                                       --------       --------       ---------       ---------
                   Net income                          $  1,066       $  7,868       $  26,508       $  15,968
                                                       ========       ========       =========       =========
Shares used in per share calculation                     55,671         55,024          54,839          54,852
                                                       ========       ========       =========       =========
Net income per diluted common share                    $   0.02       $   0.14       $    0.48       $    0.29
                                                       ========       ========       =========       =========

RECONCILIATION OF REPORTED GAAP NET INCOME TO PRO
FORMA NET INCOME
Net income                                             $  1,066       $  7,868       $  26,508       $  15,968

In process research and development expense              12,000              -          13,220               -
Amortization of acquisition related intangibles           2,462          1,145           6,450           4,391
Litigation settlement income(charges)                      (840)             -          (2,408)          4,409
Loss on equity investment                                   671              -           1,562               -
Tax effect of pro forma adjustments                        (438)          (343)         (1,420)         (2,640)
                                                       --------       --------       ---------       ---------
Pro forma net income                                   $ 14,921       $  8,670          43,912       $  22,128
                                                       ========       --------       =========       =========
Shares used in per share calculation                     55,671         55,024          54,839          54,852
                                                       ========       ========       =========       =========
Pro forma net income per diluted common share          $   0.27       $   0.16       $    0.80       $    0.40
                                                       ========       ========       =========       =========




EFI Fourth Quarter 2003 Results

ELECTRONICS FOR IMAGING, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)



                                                 DECEMBER 31,    DECEMBER 31,
                                                     2003            2002*
                                                          
ASSETS

Cash, cash equivalents and short-term investments  $ 624,111       $ 498,370
Restricted short-term investments                     69,669              --
Accounts receivable, net                              53,317          42,267
Inventories                                            7,989           4,125
Other current assets                                  28,718          18,053
                                                   ---------       ---------
      Total current assets                           783,804         562,815

Property and equipment, net                           49,095          53,187
Restricted investments                                43,080          43,080
Goodwill                                              67,166          43,552
Intangible assets, net                                51,032          17,386
Other assets                                          16,484           7,086
                                                  ----------       ---------
       Total assets                               $1,013,661       $ 727,106
                                                  ==========       =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                   $  17,995       $  13,067
Accrued and other liabilities                         67,386          47,353
Income taxes payable                                  33,231          32,341
                                                   ---------       ---------
Total current liabilities                            118,612          92,761
                                                   ---------       ---------

Long-term obligations                                240,236             278
                                                   ---------       ---------

            Total liabilities                        358,848          93,039
                                                   ---------       ---------

Stockholders' equity:
            Common stock                                 620             590
            Treasury stock                          (159,077)        (99,959)
            Additional paid-in-capital               326,761         272,456
            Retained earnings                        486,509         460,980
                                                   ---------       ---------
           Total stockholders' equity                654,813         634,067
                                                   ---------       ---------
 Total liabilities and stockholders' equity       $1,013,661       $ 727,106
                                                  ==========       =========

*Amounts derived from 2002 audited financial statements


EFI Fourth Quarter 2003 Results


ELECTRONICS FOR IMAGING, INC.
REVENUE BREAK-DOWN
(IN THOUSANDS)
(UNAUDITED)



                                                    THREE MONTHS ENDED       TWELVE MONTHS ENDED
                                                        DECEMBER 31,            DECEMBER 31,
                                                     2003         2002        2003         2002
                                                                            
Revenue by product
     Stand-alone Color Servers                      $50,735     $43,620     $155,161     $164,741
     Embedded Color Solutions                        25,059      24,301      124,832       98,108
     Digital Black-and-White Solutions               12,803      11,393       38,891       45,366
   Other Sources                                     19,256      11,395       60,703       41,970
                                                     ------      ------       ------       ------
Total                                              $107,853     $90,709     $379,587     $350,185
                                                   ========     =======     ========     ========

Shipments by geographic area
   North America                                    $58,605     $46,792     $192,326     $184,891
   Europe                                            29,479      31,389      113,914      108,978
   Japan                                             16,595       7,850       57,231       38,541
   Rest of World                                      3,174       4,678       16,116       17,775
                                                      -----       -----       ------       ------
Total                                              $107,853     $90,709     $379,587     $350,185
                                                   ========     =======     ========     ========