Wilsonville, Ore. — InFocus posted a higher net loss of $12.8 million for the second quarter, down from from the $19.6 million loss reported for the second quarter of last year.
Second-quarter revenues of $97.6 million were down 13 percent, compared with first-quarter revenues, and down 28 percent from revenues in the second quarter of 2005. Gross margins improved to 15 percent in the second quarter of 2006, from 14.9 percent in the first quarter.
InFocus reported that overall average selling prices were down 6 percent quarter-to-quarter, primarily a result of changes in the mix of products sold as opposed to price reductions across the product portfolio. Projector unit shipments were approximately 84,000 units in the second quarter, down about 11 percent from the prior quarter.
Operating expenses, exclusive of restructuring charges and regulatory assessments, were $23.6 million for the second quarter of 2006, down $1.3 million from the first quarter of 2006 and down $4.3 million from the second quarter of 2005. Included in general and administrative operating expenses for the second quarter are approximately $1.1 million of legal and administrative costs associated with the audit committee investigations completed during the quarter.
“While I am disappointed in our financial results for the quarter, many of our restructuring activities have been successful, preserving cash, reducing our cost structure, introducing several new products and launching a new brand campaign. However, our revenues and gross margins are not at the level we had anticipated,” stated Kyle Ranson, president/CEO, InFocus. “We remain committed to maximizing shareholder value, leveraging our core strengths and taking further cost actions as necessary to drive our core business to profitability.”