P R E S S R E L E A S E
InFocus(r) Third Quarter Earnings Increase 59 PercentLeader in Data/Video Projection Market Reports Continued Strong Revenue Growth
Wilsonville, Ore., October 12, 2000 - InFocus Corporation (NASDAQ: INFS, OSE: IFC) today announced better than expected third quarter earnings of $.45 per share, before merger related expenses. Third quarter revenues of $227.4M increased 29 percent from the $176.7M reported in the third quarter of 1999.
Net income in the third quarter (before merger related expenses) of $18.2M improved $6.7M or 59 percent over the third quarter of 1999 net income of $11.5M. Earnings per share in the third quarter (before merger related expenses) of $.45 increased $.16 over the third quarter of 1999 earnings per share of $.29. Including merger related expenses of $1.3M, third quarter 2000 net income was $16.8M and earnings per share were $.41.
"We are very pleased with our financial results during the third quarter," said CEO and President, John V. Harker. "In addition, we made significant progress in the integration efforts associated with our completed merger with Proxima(r) ASA. We have spent considerable time and energy refocusing the new InFocus Corporation on a strategy for expansion and profitable growth and a new organizational structure which will be essential for the next stages of growth."
InFocus initiated shipments of a number of new products in the quarter, and reported 41 percent unit growth in the third quarter of 2000 compared with the third quarter of 1999.
Cash decreased compared to the second quarter of 2000 primarily due to the buyback of shares associated with the merger with Proxima. Cash was required to buyout approximately 4 percent of the outstanding Proxima shares that shareholders did not tender in the voluntary offer completed on June 23, 2000. Shares outstanding of InFocus Corporation would have been 536,584 higher without this buyout.
"We remain very confident about the future of our business and industry," continued Harker. "Looking ahead to 2001, and given current market trends and economic conditions, we expect to increase revenue and earnings from 25 to 30 percent."
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, the impact competitive and economic factors have on business buying decisions and dependence on third party suppliers; 2) in regard to product availability and backlog, uncertainties associated with manufacturing capabilities, availability of critical components and dependence on third party suppliers; and 3) in regard to new product introductions, ability of the Company to make timely delivery of new platforms, 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 three-pound class personal 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 or contact the company toll-free at (800) 294-6400 (U.S. only) or (503) 685-8888.
InFocus, Proxima, and ASK are registered trademarks and LP is a trademark of InFocus Corporation.
John V. Harker
Chief Executive Officer
E. Scott Hildebrandt
Chief Financial Officer