Electronics For Imaging of Freemont, California, postponed releasing its preliminary for the second quarter of 2017 to complete an assessment of the timing of recognition of revenue.
The Audit Committee of EFI’s Board of Directors is conducting an independent review related to the matter and has retained independent professionals to assist in that review.
EFI explains 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 explains it 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.
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