P R E S S R E L E A S E
InFocus(r) Second Quarter Earnings Increase 84 PercentStrong Demand Continues as Growth Rates Accelerate in Multimedia Projection Market
Wilsonville, Ore., July 13, 2000 - InFocus Corporation (NASDAQ: INFS, OSE: IFC) today announced better than expected second quarter earnings of $.41 per share, before merger related expenses associated with the completed merger with Proxima(r) ASA. Second quarter revenues of $220.7M increased 35% from the $163.9M reported in the second quarter of 1999.
Net income in the second quarter (before merger related expenses) of $16.4M improved $7.5M or 84% over the second quarter of 1999 net income of $8.9M. Earnings per share in the second quarter (before merger related expenses) of $.41 increased $.18 over the second quarter of 1999 earnings per share of $.23. Including merger related expenses of $12.7M, second quarter 2000 net income was $7.0M and earnings per share were $.17.
"We were extremely pleased with both our financial results during the second quarter and the successful completion of our merger with Proxima," said CEO and President, John V. Harker. "We are now in an even stronger position to take advantage of the fast growth anticipated in the projection market."
InFocus, the market leader in the fast-growing multimedia projection industry, reported 72% unit growth in the second quarter of 2000 compared with the second quarter of 1999. In addition, product demand was strong sequentially compared with the first quarter of 2000. During the second quarter, the Worldwide Data Group, a consortium of leading display research companies, increased their projections for unit growth rates in the data/video projection market in FY2000 from 33% to 40%.
Gross margins of 27.7% in the second quarter increased compared with 26.5% in the second quarter of 1999. Operating Expenses of 17.6% were down from 19.0% reported in the second quarter of 1999.
Working capital continued to improve in the second quarter with cash and marketable securities increasing $8.0M from the end of the first quarter to $125.7M. Inventory turnover remained strong at 7.7 turns in the quarter compared to 7.8 turns in the second quarter of 1999. Accounts receivable days sales outstanding (DSO) were 70 days in the second quarter of 2000 compared to 67 days in the second quarter of 1999.
This press release includes forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties and several factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to anticipated revenues, gross margins, earnings, availability of components and subassemblies manufactured for the Company, backlog and new product introductions.
The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: 1) in regard to revenues, gross margins and earnings uncertainties associated with market acceptance of and demand for the Company's products, impact of competitive products and pricing and dependence on third party suppliers; 2) in regard to product availability and backlog, uncertainties associated with manufacturing capabilities and dependence on third party suppliers; and 3) in regard to new product introductions, uncertainties associated with the development of technology and the establishment of full manufacturing capabilities, dependence on third party suppliers and intellectual property rights. Investors are directed to the Company's filings with the Securities and Exchange Commission, including the Company's 1999 Form 10-K, which are available from the Company without charge, for a more complete description of the risks and uncertainties relating to forward looking statements made by the Company as well as to other aspects of the Company's business.
InFocus Corporation (NASDAQ: INFS; OSE: IFC) is the worldwide leader in designing, manufacturing and marketing award-winning data/video projectors, technologies and services. The company provides its customers with the industry's most comprehensive line of data-video projection systems marketed under its three brands: InFocus, Proxima and ASK. Solutions range from sub-five-pound ultraportable projectors, to feature-packed conference room projectors and super bright fixed installation systems. InFocus Corporation's global headquarters are located in Wilsonville, Oregon. For more information, visit the InFocus Corporation web site at www.infocus.com
InFocus, Proxima, and ASK are registered trademarks and LP is a trademark of In Focus Corporation.