Large Format Review - Business News

Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, today announced that its Board of Directors (the "Board") has approved the repurchase of up to $70 million worth of shares of its common stock through the use of a "modified Dutch auction" tender offer. This approval utilizes the balance of the previously authorized $100 million share repurchase program. EFI currently expects that it will commence the tender offer during the fourth quarter of 2009, at which time it will announce, among other things, the price range in which it will offer to purchase shares.

The tender offer will be financed from EFI's existing cash reserves. The funding of the $100 million share repurchase authorization represents the approximate after tax cash proceeds received from the sale of EFI's excess real estate holdings earlier this year.

"The decision by the Board and Management to immediately deploy the remaining balance of our $100 million repurchase program through a tender offer completes our goal of returning the cash generated from our real estate sale to our stockholders," said Guy Gecht, CEO of EFI. "We believe repurchasing our shares combined with bringing new innovative products to market will create value for our stockholders."

The tender offer announced in this press release has not yet commenced. This press release is for informational purposes only, and is not an offer to purchase or the solicitation of an offer to sell any shares of EFI common stock. The tender offer, if commenced, will be made solely by and subject to the terms and conditions set forth in the tender offer documents, including the Offer to Purchase and the Letter of Transmittal, that will be distributed to holders of EFI's common stock and filed with the Securities and Exchange Commission ("SEC"). Before any decision is made with respect to the tender offer, holders of EFI's common stock are urged to read the Schedule TO, including the Offer to Purchase, the Letter of Transmittal and other related materials when they become available and any other documents filed with the SEC because they will contain important information about the tender offer.

Holders of common stock will be able to obtain these documents as they become available free of charge at the SEC's website at www.sec.gov, or at the SEC's public reference room located at 100 F Street, N.E., Washington, DC 20549. In addition, holders of common stock may also request copies of the Schedule TO, the Offer to Purchase, the Letter of Transmittal and other related materials filed with the SEC free of charge by contacting EFI's information agent for the tender offer. The tender offer will not be made to, and tenders of EFI's common stock will not be accepted from or on behalf of holders, of EFI's common stock in any jurisdiction in which the making or acceptance of such tender offer is not permissible.

"In the face of continuing tough market conditions we increased operating margin, reflecting the strength of our franchise businesses and the effectiveness of our operating model," said Dean A. Scarborough, president and chief executive officer of Avery Dennison. "The combination of fixed-cost reductions and increasing variable margins positions the Company for strong profit growth when markets improve."

"While the rate of volume decline in the third quarter improved compared with the first half of the year, this was largely due to a slowdown in inventory reductions," Scarborough said. "Our end-markets remain soft, and we continue to be cautious about the pace of their recovery."

"I want to note the excellent performance of our employees in such uncertain times," Scarborough said. "They have maintained their focus on serving our customers, operating our businesses, and laying the groundwork for the future. This has been hard work, and they've done a tremendous job."

For more details on the Company's results for the quarter, see the Company's supplemental presentation materials, "Third Quarter 2009 Financial Review and Analysis," posted at the Company's Web site at www.investors.averydennison.com, and furnished under Form 8-K with the SEC.

Third Quarter, 2009 Results by Segment
All references to sales reflect comparisons on an organic basis, which exclude the impact of acquisitions and foreign currency translation. All references to operating margin exclude the impact of restructuring, asset impairment charges, lease cancellation costs, and other items.

Pressure-sensitive Materials (PSM)
* Roll Materials sales declined, reflecting weakness in end-markets. Sales continued to decline in the more economically sensitive Graphics and Reflective Products division.
* Operating margin increased as productivity offset the impact of reduced fixed-cost leverage, while the effects of pricing and raw material trends continued to cover the cumulative impact of 2008 inflation.

Retail Information Services (RIS)
* The decline in sales primarily reflected reduced demand for apparel in the U.S. and in Europe, and caution on the part of retailers.
* The decline in operating margin reflected reduced fixed-cost leverage, pricing, and other factors that more than offset the benefit of restructuring and productivity actions.
* The Company is continuing initiatives to reduce fixed costs in light of current market conditions, while introducing new products and improving value-added services to increase its share of this large market.

Office and Consumer Products (OCP)
* The decline in sales reflected weak end-market demand, led by slower corporate purchase activity. The sales decline was partially offset by strong back-to-school sales, due in part to expanded distribution and consumer trade-up to more durable binders.
* Operating margin declined as the benefit of productivity actions was more than offset by the impact of reduced fixed-cost leverage.

Other specialty converting businesses
* The decline in sales is primarily attributable to lower volume of products sold to the housing and construction industries.
* The increase in operating margin reflected restructuring and productivity improvements that more than offset reduced fixed-cost leverage.

Consolidated Items and Actions
* In the fourth quarter of 2008, the Company began a restructuring program expected to reduce costs across all segments of the business. The Company is targeting $160 million in annualized savings by mid-2010 (estimating $75 million benefit, net of transition costs, in 2009). The Company estimates that it will incur approximately $130 million of total restructuring charges associated with these actions, with approximately $110 million to be incurred in 2009. In addition to the savings from these new actions, the Company expects approximately $40 million of carryover savings in the year from previously implemented actions.

At the end of the third quarter of 2009, the Company achieved run-rate savings representing approximately 70 percent of its restructuring target.

* The effective tax rate in the third quarter was negative 7 percent, while the adjusted tax rate was positive 7.5 percent. The effective and adjusted tax rates for the full year are expected to be in the low single-digits and low double-digits, respectively. The ongoing annual tax rate is expected to be in the low 20 percent range, varying significantly from quarter to quarter.

DiMS! organising print, a world leader in MIS systems for the printing and packaging industries, is now introducing its latest DiMS.NET! MIS/ERP solution in Europe. The new generation of the popular DiMS! system automates the complete range of web-enabled administrative and printing processes across an entire enterprise, helping businesses to streamline their operations, increase productivity and cut costs. Based on Microsoft’s latest .NET technology and featuring the familiar look and feel of Microsoft software, DiMS.NET! is easy to learn and use, as it automatically adapts to the preferred work method of the individual user. 

Gerard Marneth, co-founder and CEO of DiMS! organizing print, comments: "By building upon the comprehensive end-to-end functionality of the existing DiMS! solution, we've created a brand new ‘plug & play’ category in MIS/ERP. DiMS.NET! is an all-in-one application with true end-to-end integration—from estimating to planning and scheduling, prepress to production, shipping to invoicing, and financials.  It reduces errors, accelerates processes, improves flow, increases efficiency and delivers significant cost savings. But most importantly, DiMS.NET! is easy to implement and very intuitive to use”.

Michael Murphy, President Japs-Olson Company, was involved in a long and extensive search for a Web-enabled MIS system and selected DiMS! because “it was the best product that would enable us to operate at a world-class level and provide solutions for challenges in the marketplace.  It enables us to streamline our operations and significantly reduce setup and rollout times. All relevant information—such as customer, job and material data—only needs to be entered once, which greatly reduces mistakes. Plus, we can configure DiMS.NET! to automatically push information to the appropriate employee, which saves a lot of time”, concludes Michael Murphy.
Business-enhancing benefits
DiMS.NET! is also particularly well suited to medium-to-large printers with multiple facilities. It delivers a raft of business-enhancing benefits, such as improved performance and faster server applications.
It enables clear communication of data in multiple currencies and multiple languages across every location.  The product-focused business templates decrease setup times, permit greater efficiency and reduce rollout time. Customers who have moved to the .NET technology typically experience an increase in speed and efficiency between 300% and 500%.

With DiMS.NET! delivery times are dramatically decreased.  A single point of entry for all information decreases the risk for mistakes.  Every step in the workflow presents numerous options to match the preferred work approach of each individual user.  Printers can now configure DiMS.NET! so that information is automatically pushed to the appropriate employee in the company.  This means, for example, that a production planner will not have to check whether a required roll of paper has arrived: the system will deliver the relevant information as soon as that roll arrives and it will also warn them if it doesn’t arrive on time.

Improved security and integration
DiMS.NET! integrates smoothly within existing IT environments. The .NET framework makes it easy to deploy, run and manage applications. In addition it offers mobility support, providing one unified programming model for smart client and web applications for both PCs and mobile devices.

“DiMS.NET! provides the essential technologies and interfaces allowing users to securely run the application in a broader business environment”, remarks Gerard Marneth. “The code access security methods in the .NET framework check against administrator-set or default security policies before deciding to run an application or enabling it to access a particular resource. The .NET framework also supports XML web services, which can be used to integrate applications across different platforms, or to offer software-as-a-service. Plus there is support for more than 20 programming languages.”

DiMS.NET! comes packed with valuable features for end users, including:

• DiMS! eLearning system - users can access the training course via the internet at any time.  Intuitive online lessons simulate the look, feel and behavior of the actual live system. Lessons are presented in a preview format, whereby the user learns by watching a simulation.  The training session is followed by a testing module where users are presented with generic instructions to verify their capability to correctly execute the task.
• One integrated database – users get an enterprise-wide view using visually appealing and easy-to-understand personal dashboards. In addition they can filter and analyze real-time data according to their needs, and act quickly if production problems occur. Drill-downs and dashboards to the transaction level are standard. Internal and external documents are available in the integrated archive, providing real-time access to current communications. A personal cockpit enables company management to view real-time key data at a glance. This places the business data essential for decision making at the manager's fingertips, in a clear and intuitively understandable form.  Direct access to data can even be tuned precisely to individual requirements.
• An enhanced scheduling board is an integral part of the new DiMS.NET!.  Scheduling captures all characteristics of each job and proposes the most efficient way to run it.  Scheduling can be viewed across departments, plants, and even international borders.  Flag support and dashboards give a visual status of the jobs. This optimizes production times and gives users the best scenarios to manage the plant.
• Web-based application – customers can upload orders via DiMS.NET! directly to the web-based server, and order details can be delivered to all relevant areas of the company.
• Scalability - DiMS.NET! provides an easy upgrade path. Companies can decide to start with only estimating, scheduling or job tickets, and can easily upgrade to a more complete solution at any time. If a DiMS! customer expands services or moves into a new market, they can rely upon DiMS.NET! being flexible enough to evolve with them. The extensive 25 year history and experience of the DiMS! solution have been incorporated into DiMS.Net!, which means that DiMS! can handle any specific print product and also any fulfillment, mailing and shipping activity. There is no risk of outgrowing the system, or having to buy add-ons in order to expand.
• Full JDF integration – DiMS.NET!’s integration with prepress systems through JDF allows to automatically plan the print job and see how it’s progressing through prepress. To date, DiMS! has achieved the highest possible MIS-ICS level of conformance in terms of JDF submission and JMF handling, and is the first and only to be certified in commercial web printing–after acquiring JDF certifications for prepress, conventional printing (sheet-fed), imposition ICS and base ICS.

Gerard Marneth concludes: “DiMS.NET! builds on our company’s recognized experience in print business management systems. Some of the most respected printers in the world rely on DiMS! to manage their businesses. DiMS.NET! demonstrates the strength of our software and its ability to quickly adapt to the latest technologies available.  We anticipate that DiMS.NET! will further strengthen our position in the industry.”

Velmex Distribution leading Large Format Printer distributor for Canon UK, welcomed Canon directors, senior management and partners for a showroom opening at their newly acquired premises in Mitcham, Surrey. The showroom is now thought to be the biggest Canon large format printer demonstration facility in the UK.

Velmex Distribution the leading distributor for Canon large format printers celebrated the opening of a showroom facility in their new premises on Willow Lane Industrial Park in Mitcham, Surrey.  The premises comprises of a much larger office and warehousing space as well as an impressive 30ft demonstration suite and showroom, filled with Canon’s full range of printers, making it the largest Canon LFP showroom in the UK.

The showroom opening was attended by two Canon Directors; Mr Yuichi Miyano, Director LFP Solutions for Canon Europe as well as Matthew Seale, Director, Canon Partner Channel, Canon UK & Ireland.

By opening the showroom Velmex Distribution demonstrates a strong level of confidence in Canon’s products and market direction in a difficult financial climate.   Velmex Distribution has worked closely with Canon since 2001, together developing the sales channel and improving the value proposition collectively offered.  Matthew Searle Canon UK Directory said “Our partnership with Velmex over the last 8 years has been a model of how a vendor and distributor partnership should work”.

Mr Yuichi Miyano, Director LFP Solutions for Canon Europe visited Velmex Distribution for the first time at the opening. He was suitably impressed by the facilities and said “Velmex’s expertise is highly regarded by Canon and recognised as far a field as Canon Inc in Japan,”
The launch of the showroom coincides with Velmex Distribution’s recent Fogra certification for engineer, Daniel Judge, further proof of the service Velmex are intent on providing.

The impressive facilities are at the forefront of the move to Mitcham, “We desperately needed more space both for warehousing, office and showroom facilities.  Says Mark Keeley, Managing Director for Velmex Distribution “The premises offers us all of this”  The showroom is believed to be the largest Canon LFP showroom in the country and the only of its kind to offer all the Canon LFP line up as well as the C1+ a new light production printer in Velmex Distribution’s portfolio.

The showroom, filled with Canon’s range of Image PROGRAF printers and the Canon C1+, is smartly painted in slate grey, and provides a large boardroom table and presentation display system for meetings. The facilities offer customers the chance to see the products and have their own output printed before they invest.  Shane Burchett, LFP Channel Development Manager  said, “It’s wonderful to see a showroom with all our products so impressively displayed, it gives us a fantastic facility in the South East to showcase our printers and with Velmex’s technical expertise it provides our channel with an exceptional tool”

Xerox Corporation announced today third-quarter 2009 results that include earnings per share of 14 cents and $610 million in operating cash flow.

"Our third-quarter performance reflects our continued disciplined approach to managing cash and reducing costs," said Ursula M. Burns, Xerox chief executive officer. "As a result, we exceeded our expectations for earnings and operating cash flow, and are benefiting from operational improvements that are mitigating the economic challenges."

The company reported third-quarter total revenue of $3.7 billion, down 16 percent from third-quarter 2008 including a 2 point negative impact from currency. Post-sale and financing revenue was down 11 percent, or 9 percent in constant currency. Equipment sale revenue declined 29 percent, or 28 percent in constant currency.

"Just as we are closely managing costs, our customers are doing the same and we have not seen a meaningful shift towards increased spending on technology," she added. "For many of our business clients – small to large – there remains a hesitancy to invest until more economic factors show signs of steady improvement. We expect this trend will continue to put pressure on revenue for the balance of the year.

"At the same time, we're winning new business from clients who want to reduce their cost base through our industry-leading managed print services," said Burns. "Scaling our services business has long been a strategic focus. The growth opportunity is significant, customers are demanding more service-related value, and the multi-year contracts provide profitable recurring revenue. These factors give us confidence in the strategic and financial rationale for acquiring Affiliated Computer Services. With this acquisition and the benefits of our existing annuity-based business, we'll deliver significant revenue growth, cash and earnings expansion."

Third-quarter operating cash flow was $610 million. Through the third quarter, the company has generated $1.2 billion in operating cash flow, and, as a result, has increased its expectation for the full year to $1.7 billion. Xerox ended the third quarter with a cash balance of $1.2 billion. Total debt was down $938 million through the first three quarters, and the company is on track to reduce total debt by more than $1 billion this year.

Gross margin was 39.8 percent in the third quarter, an increase of over half a point from the prior year. Third-quarter selling, administrative and general expenses were down year over year by $131 million and SAG as a percent of revenue was 27.4 percent.

Xerox expects fourth-quarter 2009 earnings per share in the range of 20 cents to 22 cents, excluding costs related to the acquisition of ACS. The company has increased its full-year earnings expectations to 55 cents to 57 cents per share, which excludes fourth-quarter ACS acquisition related costs. Prior guidance for full-year 2009 was 50 cents to 55 cents per share.

This release discusses revenue growth using a measure noted as "Constant Currency" that excludes the effects of currency translation. Refer to the "Non-GAAP Financial Measures" section of this release for a discussion of these non-GAAP measures. In addition, fourth-quarter and full-year 2009 EPS has been provided without including fourth-quarter ACS acquisition related costs, which cannot be specifically quantified at this time.

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," "intend," "will," "should" and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements reflect management's current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. These factors include but are not limited to: the unprecedented volatility in the global economy; the risk that unexpected costs will be incurred; the outcome of litigation and regulatory proceedings to which we may be a party; actions of competitors; changes and developments affecting our industry; quarterly or cyclical variations in financial results; development of new products and services; interest rates and cost of borrowing; our ability to protect our intellectual property rights; our ability to maintain and improve cost efficiency of operations, including savings from restructuring actions; changes in foreign currency exchange rates; changes in economic conditions, political conditions, trade protection measures, licensing requirements and tax matters in the foreign countries in which we do business; reliance on third parties for manufacturing of products and provision of services; the risk that the future business operations of Affiliated Computer Services, Inc. ("ACS") will not be successful; the risk that customer retention and revenue expansion goals for the ACS transaction will not be met; the risk that disruptions from the ACS transaction will harm relationships with customers, employees and suppliers; and other factors that are set forth in the "Risk Factors" section, the "Legal Proceedings" section, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section and other sections of our Quarterly Report on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009 and our 2008 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.

Xerox and ACS urge investors and security holders to read the joint proxy statement/prospectus regarding the proposed transaction when it becomes available because it will contain important information. You may obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about Xerox and ACS, without charge, at the Securities and Exchange Commission's (SEC) Internet site (http://www.sec.gov). Copies of the joint proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the joint proxy statement/prospectus can also be obtained, when available, without charge, from Xerox's website, http://www.xerox.com, under the heading "Investor Relations" and then under the heading "SEC Filings". You may also obtain these documents, without charge, from ACS's website, http://www.acs-inc.com, under the tab "Investor Relations" and then under the heading "SEC Filings". Information regarding participants or persons who may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction is contained in Xerox's proxy statement for its most recent annual meeting and ACS's proxy statement for its most recent annual meeting, both as filed with the SEC.

FUJIFILM Graphic Systems U.S.A., Inc., is reporting an increase in sales and sales inquiries in the weeks following the PRINT 09 Show. The company attributes the upturn to substantial investments in R&D, strategic partnerships and acquisitions.

With industry-leading businesses that include Fujifilm Sericol, Fujifilm Dimatix, and Fuji Xerox as partners, Fujifilm Graphic Systems is able to leverage advances in printing and graphic arts technology that provide customers with opportunities to profit in the evolving printing marketplace.

"At PRINT 09, our customers saw the fruits of our investments, including the North American debut of the new Fujifilm Inkjet Digital Press - a culmination of the collaboration among Fujifilm group companies," said Masahiro Ota, president and chief executive officer of FUJIFILM Graphics U.S.A. "Together with the Inca Onset S20 and Fujifilm Sericol's leading ink technologies, as centerpieces in Fujifilm's exhibit booth, we have never seen a more positive response from customers and prospective buyers."

According to Mr. Ota, in selecting Fujifilm, printers are choosing a partner that has the financial health and strength not only to guide their businesses, but to also lead the industry.

A leading securities firm, Mizuho Securities, recently upgraded its recommendation for Fujifilm's stock. The analyst observed that Fujifilm was, "now more likely to achieve record-high profits in fiscal 2011/12." (Forbes/Reuters) This assessment of Fujifilm's strength speaks to the success of the company's diversification into new businesses, and to its ability to reinvigorate traditional businesses by identifying high potential opportunities within their markets.

In Fujifilm's most recent report to shareholders, Graphic Arts was called out as one of the company's five priority business fields for growth, listing the following objectives for its print businesses:

• Fujifilm's continuous R&D investment in the printing and graphic arts business.
• Employ Fujifilm and Fuji Xerox's inkjet and xerography technologies and effectively coordinating such management resources as marketing channels and brand values in the digital printing market.
• Aim for the top global market share for CTP plates.

In the face of the current economic challenges, Fujifilm remains committed to leveraging its heritage in the printing and graphic arts field to introduce new solutions for profitable revenue generation.

"While it may seem counterintuitive or even a bit intimidating, economic climates such as the current one do offer business owners an opportunity to grow," said Mr. Ota. "This kind of growth requires both a focus on what's most important: cash flow, cost control, expansion of services and capabilities and effective marketing, as well as having a strong and reliable partner like Fujifilm.

"Our theme at the Print 09 show was 'In Control.' That's what we do, especially in times of economic uncertainty, help our customers remain in control and stay focused on what's most important to their businesses."