Wilsonville, Ore. – InFocus released what it called a preliminary financial report for the third quarter, saying revenues are expected between $78 million and $82 million, compared to $97.6 million for the second quarter of 2006.
The revenue decline occurred in both the Americas and Europe, and InFocus noted that its new meeting room projectors, the 2,000-lumen IN32 and 2,500-lumen IN34, began shipping in limited quantities late in the quarter and will be more broadly available in the fourth quarter.
Gross margins for the third quarter are expected to decline from second quarter results of 15 percent due to the lower revenues as well as an inventory charge related to the manufacturer’s entry-level consumer product, the IN72, which has continued to sell below expectations through the mass consumer electronics retail channel.
As a result, InFocus expects to post a third quarter pro forma operating loss greater than the pro forma operating loss recorded in the second quarter of 2006 of $8.9 million.
Given these financial results, InFocus said it is committed to making further reductions to its cost structure. Details will be forthcoming as part of the release of final third quarter financial results.
InFocus also announced that its board is conducting an ongoing evaluation into strategic alternatives for the company and that Banc of America Securities is engaged as its financial advisor to assist the board in its evaluation.
InFocus advised that there can be no assurances that the evaluation process will result in any specific transaction and also advised that it does not intend to disclose developments regarding the evaluation unless and until the company has entered into a definitive agreement for a transaction that has been approved by its board.
“We continually look for ways to enhance shareholder value and, in doing so, we plan to consider all reasonable alternatives as we move through this process,” stated Kyle Ranson, president/CEO. “Our core strengths — industry brand leadership, a broad product and patent portfolio along with a strong market share position — are important assets to leverage as we focus on improving the operating performance of our core business and consider strategic alternatives,” concluded Ranson.
