InFocus Expects Lower Than Anticipated Revenue and Earnings
WILSONVILLE, Ore.--(BUSINESS WIRE)--Dec. 21, 2000--InFocus(R) Corporation (Nasdaq:INFS) (OSE:IFC) today announced that revenue and earnings for its fourth quarter ending December 31, 2000 will be below previous expectations.
Revenue in the fourth quarter is now expected to be in the range of $215M to $220M. Earnings per share before merger related expense is expected to be in the range of $0.22 to $0.25.
For the year ended December 31, 2000, the company now expects revenue to be in the range of $878M to $883M and earnings per share to be in the range of $1.51 to $1.54, before merger related expenses.
"We ended the third quarter with positive market momentum, and experienced a good start to the fourth quarter," said John V. Harker, CEO and President. "However, it is now clear that weakening economic conditions and waning consumer confidence is beginning to result in a slowdown in corporate capital spending affecting short-term demand for some of our products. In addition, we are beginning to experience supply constraints on lamps affecting certain of our key products in the short term," Harker said. "We believe this is a short-term problem and that the availability of these critical components will be sufficient to match our demand for affected products sometime in the second quarter of FY2001."
"Overall, our outlook for 2001 remains very positive, although we expect the second half of the year to be stronger than the first half for the reasons mentioned above," Harker said. "We now believe that given current component availability, market conditions and economic climate, the first quarter of fiscal 2001 will be relatively flat in both revenues and earnings compared to the fourth quarter of fiscal year 2000. We expect to grow total fiscal year 2001 revenue 20 percent and earnings per share 25 percent over the revised estimates for fiscal year 2000. In addition, fiscal year 2001 gross margins and operating margins are expected to improve slightly as a percent of sales over fiscal year 2000 performance."
Actual results for the fourth quarter 2000, and further details on the company's expectations for fiscal 2001, will be announced January 30, 2001.
"For InFocus Corporation, fiscal year 2000 will be very successful albeit not as strong as we earlier expected," Harker continued. "With these revised expectations, we will grow our revenues over 28 percent and our earnings per share over 37 percent when compared to fiscal year 1999 reflecting strong year over year improvement. Gross margins in fiscal year 2000 will be relatively flat compared to fiscal year 1999, and our operating income will have increased almost a full percentage point to approximately 9.6 percent of sales."
The company will hold a conference call today at 9:30 AM eastern time. The session will include brief remarks and a question and answer period. The conference can be accessed worldwide by calling 847/413-3751 (confirmation No. 3316838), or via live audio webcast at www.vcall.com. A replay of the call will be available at 888/843-8996 (confirmation No. 3316838) or at www.vcall.com.
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 company has no duty to update the forward looking statements.
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 including but not limited to lamps, 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 digital projectors, technologies and services. The company provides its customers with the industry's most comprehensive line of multimedia projection systems marketed under its three brands: InFocus, Proxima and ASK. Solutions range from the sub-three-pound microportable projector, to feature-packed conference room projectors, super bright fixed installation systems and audio- and video-conferencing solutions. 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, 503/685-8602
Scott Hildebrandt, 503/685-8603