This excerpt taken from the EFII 10-Q filed May 12, 2008.
Revenues by Geographic Area
Revenues by geographic regions for the three months ended March 31, 2008 and 2007 were as follows (in thousands):
The 10% or $8.0 million decrease in the Americas region was due to weakness in sales of our Controllers products that was caused by our OEMs customers delaying their buying decisions. The industry trend of moving toward lower inventory levels also contributed to the decline.
The 3% or $1.2 million increase in the revenues in the EMEA region was due to the continued penetration of our Inkjet Products into this region.
The 31% or $5.4 million decrease in revenues in Japan was due to lower demand for Controller products as compared to the same period in 2007 due to slower sell-through by our OEM customers.
Shipments to some of our OEM customers are made to centralized purchasing and manufacturing locations which in turn sell through to other locations, making it difficult to obtain accurate geographical shipment data. Accordingly, we believe that export sales of our products into each region may differ from what is reported. We expect that sales outside of the U.S. will continue to represent a significant portion of our total revenue.
A substantial portion of our revenue over the years has been attributable to sales of products through our OEM customers and independent distributor channels. For the three months ended March 31, 2008, two customers Canon and Xerox each provided more than 10% of our revenue individually and approximately 33% in the aggregate. For the three months ended March 31, 2007, three customers Canon, Xerox and Konica Minolta each provided more than 10% of our revenue individually and approximately 43% of revenue in the aggregate.
The decrease in the percentage of overall revenue from our major OEM partners in the first quarter of 2008 compared to the first quarter of 2007 is attributable to the increase in the Inkjet Products business where most of the revenue is generated from sales to distributors and direct customers. No assurance can be given that our relationships with these and other significant OEM customers will continue or that we will be successful in increasing the number of our OEM customers or the size of our existing OEM relationships. Several of our OEM customers have reduced their purchases from us at various times in the past and any customer could do so in the future as there are no contractual obligations by most of our OEMs to purchase our products at all, or in significant amounts. Such reductions have in the past and could in the future have a significant negative impact on our consolidated financial position and results of operations. We expect that if we continue to increase our revenues from Inkjet products and our professional printing applications, the percentage of our revenue that comes from individual OEMs will continue to decrease.
We intend to continue to develop new products and technologies for each of our product lines including new generations of server and controller products and other new product lines and to distribute those new products to or through current and new OEM customers, distribution partners, and end-users in 2008 and beyond. No assurance can be given that the introduction or market acceptance of current or future products will be successful.
To the extent sales of our products do not grow over time in absolute terms, or if we are not able to meet demand for higher unit volumes, it could have a material adverse effect on our operating results. There can be no assurance that any products that we introduce in the future will successfully compete, be accepted by the market, or otherwise effectively replace the volume of revenue and/or income from our older products. Market acceptance of our software products, products acquired through acquisitions and other products cannot be assured.
We also believe that in addition to the factors described above, price reductions for all of our products will affect revenues in the future. We have previously reduced and in the future will likely reduce prices for our products. Depending upon the price-elasticity of demand for our products, the pricing and quality of competitive products, and other economic and competitive conditions, such price reductions have had and may in the future have an adverse impact on our revenues and profits.
This excerpt taken from the EFII 10-Q filed Oct 22, 2007.
Revenues by Geographic Area
Revenues by geographic regions were as follows (in thousands):
The increase in revenue across all geographic regions was driven by the growth of Inkjet products by 17% from last year and 6% growth of Controller and APPS products.