Digital printing operation Electronics for Imaging (EFII) posted third-quarter results below analysts’ expectations on lower margins at its inkjet business.

For the quarter ended September 30, 2007, the EFII reported revenues of $158.3 million, up approximately 15% when compared to third quarter 2006 revenue of $138.2 million.

GAAP net income was $8.1 million or $0.13 per diluted share in the third quarter of 2007, compared to a net loss of $27.7 million or $0.49 per diluted share for the same period in 2006

For the fourth quarter of 2007, the Company expects revenues in the range of $160 million to $165 million.

That seemed to upset investors.

Douglas A. McIntyre