Lower than anticipated revenues in its core print controller business were given as the reason for the problems.

The firm didn't state whether the decline was in its standalone Fiery server business or its embedded controller markets. Servers, which drive most digital copiers and printers in the market made up 42% of revenues in Q2 2004 down 6%, while embedded controllers made up 34% up 5%.

EFI issued a statement that its pro forma earnings per share would be 7-8p per share ($0.12-$0.14), half its previous forecast. It also expected revenues to be down by 10% to around 55m.