Electronics For Imaging's Stock Plummets Toward 4-year Low After Accounting Woes Disclosed

Shares of Electronics for Imaging Inc. plummeted 29% in premarket trade Friday, putting them on track to open at a near four-year low, after the digital printing company said it would delay the release of second-quarter results as it was conducting an internal review of its accounting practices. "EFI expects to report a material weakness in internal control over financial reporting related to this matter," the company said in a statement late Thursday. "EFI also expects to report that EFI's disclosure controls were not effective in prior periods." The company said it did not expect total revenue for the periods under review to be materially different from previously reported revenue. Analyst Aaron Rakers at Stifel Nicolaus said he was suspending his rating on EFI given the "uncertainty of the duration, scope and timing" of the outcome of the review. He had previously rated EFI at buy. The stock had gained 8.7% year to date through Thursday, while the S&P 500 had climbed 10.4%.

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