In Focus Systems Inc.'s (Nasdaq: INFS) focus has paid off, according to Thursday's announcement that second quarter profits were 21 cents a share. The results are 8 cents better than First Call's consensus of 13 cents a share, and walloping progress since the previous year's second quarter loss of 5 cents a share.
In Focus shares rose 3.4 percent, up 1/2 to 15 3/16 in early trading Thursday.
The company's focus on ultraportable projectors has paid off; strong demand for new line of projectors was cited as the sole source of second quarter gains. Revenue of $93.4 million creamed 1998's second quarter revenue of $72.3 million by 29 percent. Second quarter revenue for 1999 was also 8 percent above the first quarter's total of $86.5 million.
"Our ultraportable products in particular are clearly very well-positioned for the fastest growing segment of the market,'' said chairman, president and CEO, John V. Harker in a company release. Shipments in the quarter were up 36 percent over the second quarter of 1998.
Net income in the second quarter was $5 million, an improvement over the second quarter 1998 net loss of $1.2 million. Gross margins had also improved, at 28.3 percent compared to 20.7 percent in the second quarter of 1998. The balance sheet also saw solid gains, marking $52.4 million compared to $48.1 million in 1998's second quarter. Strong demand and supply constraint for the newly introduced ultraportable products was cited as key to all the increases.
"We had a strong quarter across the board,'' said Harker. "Our backlog increased significantly reflecting very strong demand or our products. Revenues, profitability, and market share were up, and we signed agreements with two new strategic partners which should further strengthen our worldwide market leadership position,'' added Harker.
In Focus announced June 30 it signed a letter of intent with Chinese electronic firm Shanghai General Electronic Co (Nasdaq: SGEG) to make projection systems in China. InFocus also stated June 22, it had enetered an agreement with Toshiba Corporation of Japan to supply their projector platforms and exchange information with Toshiba.
In Focus, which also beat first quarter expectations, is based in Wilsonville, Oregon.