The company reported revenues of £76.7m ($152m) for the quarter ending 31 December 2007, 1% down on the corresponding quarter in 2006. Full-year revenues were pegged at £313m, up 10% from £284.8m in 2006.

Non-GAAP adjusted net income for the quarter, which included the amortisation of acquisition costs, stock-based compensation, tax and other charges and gains, came out at £7.3m, down 38% on Q4 2006, while the full-year net income showed an annual improvement of 2% to £39.3m.

The Q4 net income translated as 23 cents a share – way off analysts' hopes of a 37 cent figure before EFI published its preliminary warning.

EFI chief executive Guy Gecht said: "We are very disappointed with our fourth-quarter results and are taking immediate actions to reduce our expenses to reflect the near-term revenue outlook for the Fiery business.

"At the same time, we remain confident in our long-term opportunities. We are encouraged by the 27% year-over-year revenue growth in our inkjet business, which reflects both its industry-leading product portfolio and the benefits of the investments we have made over the past year."

Some analysts, such as Collins Stewart's James McIlree, downgraded the stock from hold to sell. But others have claimed the company remains in rude health. Fox Business quoted Al Frank Asset Management's John Buckingham, who said the company had little or no long-term debt and £277.4m in cash and equivalents.

EFI's stock price was largely unmoved by Thursday's announcement, trading at $13.10 at the time of writing.