So, we just did yet another layoff and also a 20% pay cut, 401k matching gone, etc. I see Marc Olin is still employed and weaseled his way into the inkjet side as his previous MIS stuff is now gone, along with billions in capital wasted over decades not to mention his accounting snafus. The Fremont location will be closed with no replacement office available yet. I guess this is to be expected when you waste 50M on Bill Muir's 1 year stint. Did you know Bill only drove Cadillac escalades and refused all other cars when visiting? What a peach! Bust out the popcorn, lets see where it goes from here!
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$150 million quarterly revenue effectively puts EFI back to year 2004 quarterly earnings, when that number was considered GOOD.
Speculation is that revenue will be down around 40% year over year with covid-19. So instead of quarterly revenue around $250 million, it is in the neighborhood of $150 million. Tough Luck for Sirius. They really got duped!
EFI will not survive a second wave of COVID-19.
Major print company files for bankruptcy!
LSC Communications files for Ch. 11 bankruptcy after ‘unprecedented’ drop in print demand
https://www.chicagotribune.com/business/ct-biz-lsc-communications-bankruptcy-quad-graphics-20200413-fyo6jvuaivffddgsig5ctfvkca-story.html
How many more print shops will go under due to covid 19?
And maybe...
How long before EFI declares bankruptcy???
EFI is spiraling down faster than an airline company in a pandemic. Many digital print shops have suffered massive losses as a result of covid-19, as trade shows have been cancelled, so signage, point of sale, and print materials are not needed, and many print shops are not open. Many of these print shops are mom and pop operations and many will go under unfortunately. There just isn’t any demand for many forms of digital print in the current situation. Consequently, the demand for new digital printers and ink is going way down.
The prediction is EFI revenues could be down as much as 40%-50% and the company will be half of its current size by the end of the year. Make no mistake: they are in survival mode and fighting just to stay alive.
Hindsight is 20/20 of course, but I don’t think that things could have gone much worse for Sirius with this purchase.
EFI is a company with “underlying health conditions” and the corona virus has it headed towards the ICU.
For the Fremont office, they should just go to “work from home forever.” Just sc-ap the new office. You don’t need a new office. This way, as EFI continues to scale down with layoffs and furloughs, you can just save all that rent money on office space that in the end, you really won’t need since you will only end up with a small fraction of the remaining employees.
Digital print is in a downward spiral due to covid. People working from home don’t need to print in the office. People prefer online because of concerns of the virus being on the physical print.
Could be yet another leg down for Fiery. Here’s the details...
https://www.computerweekly.com/blog/Quocirca-Insights/The-impact-of-COVID-19-on-the-print-industry
There is definitely a replacement office for Fremont in the works, it is down the street from the current location and much smaller. The Shelter in Place orders in the area prevent completion of the new facility.
isn't it amazing that Marc Olin hasn't been fired yet? We marvel in wonder each day his employment continues!!!!
500M will pay down a lot of the debt. Sirus is left with a bunch of specialty printing equipment manufacturing and ink sales. Could happen if they find a Lexmark bites. Munches fist full of popcorn.
It’s all true. The equity grants went away when they were bought by Sirius. Now 20% pay cuts across the board and no 401k match. Ouch. At least they have kept health plans. Could come in handy for whoever gets COVID-19.
But I heard a rumor that could explain why they haven’t found a new location after selling their current Fremont building. They are looking to sell the Fiery business. They are looking for $500 million, which they might have gotten a year ago, but probably not now. If Fiery were sold, then the buyer will pick up the Fremont Fiery employees and they don’t need as big of a space. One possibility is Lexmark in Lexington, Kentucky. I looked online at their product lineup and could be a good fit. Salaries would be cheaper than keeping it in Silicon Valley, and since they’re desperately trying to reduce costs to fit the business, this could be it.