EFI sales review leads to share price crash

EFI shed 45 percent of its share price late last week after the company sent out a press release postponing its second quarter preliminary results.

Citing 'a material weakness in internal control over financial reporting' around a matter involving the invoicing of one or more large-format printers, EFI said it was delaying a planned conference call at which the preliminary results for Q2 2017 would be announced so it could 'complete an assessment of the timing of recognition of revenue'.

The company also said it did not believe its disclosure controls for financial reporting were effective in previous periods, but stressed that the reported revenue would likely not be too different from what was previously announced: The Company currently expects that the total aggregate revenue for the periods under review will not be materially different from the aggregate revenue that was previously reported for those periods, taking into account any revenue from the prior periods that may be moved into the current or upcoming periods, the press release stated.

However, the company's NASDAQ share price nosedived following the announcement, hitting a three-year low of $26.05 USD ($33.09 AUD) on Friday - a drop of 45.34 percent. It has since recovered to just over $30 USD ($38 AUD).

EFI will issue another press release once the new date for its quarterly announcement has been set.