InFocus Warns; Hires Advisor
Shares of InFocus Corp. (INFS) fell Tuesday after the video projection company warned about its third-quarter financial results and said it hired a financial advisor to evaluate its strategic alternatives.
The Wilsonville, Ore., company announced that third-quarter financial results would fall short of second-quarter results. InFocus expects revenue to be between $78 million and $82 million, compared to $97.6 million the quarter before.
It expects gross margins for the third quarter to decline from second-quarter results of 15% due to lower revenue as well as an inventory charge related to the company's entry-level consumer product, the IN72, which has continued to sell below expectations through the mass consumer electronics retail channel. InFocus expects to post a third-quarter pro forma operating loss greater than the pro forma operating loss recorded in the second quarter of $8.9 million.
Given these financial results, the company says it's committed to making further reductions to its cost structure. Related to that end, its board has hired Banc of America Securities to assist in evaluating alternatives.Share of InFocus were trading down 54 cents, or 18%, at $2.45 in recent trading Monday.
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