Interesting article...
Infocus is the 800 lb. gorilla in the business display market...
Looks like they are making an attempt at Home theatre market...
A little pricey...
But, FDJA may be getting up off their knees and trying to stand back up...
HDTV Upgrade market for Upconverters probably a couple quarters away...but this is a step in the right direction...
In Focus projects itself into consumer niche
Dan McMillan
545 Words
3831 Characters
01/01/99
The Business Journal of Portland
1
Copyright UMI Company 1999. All Rights Reserved.
Copyright American City Business Journals Jan 1, 1999
In Focus Systems Inc. is making its first foray into the consumer
market, a move it has hinted at over the past several months.
The Wilsonville-based maker of multimedia projectors announced last
* week that it was teaming up with Faroudja Inc. to bring a liquid
crystal display (LCD) projector to the home theater market.
Both companies claim this is the first time an LCD projector with
home theater quality has been brought to market.
It is a tentative strategic measure requiring minimal financial
commitment by In Focus. In fact, In Focus is being careful to
downplay the new venture and to give the impression that this new
niche market won't distract it from its core business. But if the
best-case scenario occurs, the company could establish a foothold in
a niche market.
According to the Consumer Electronics Manufacturers Association,
consumers will spend $9.4 billion on home theater equipment in 1998.
That indicates In Focus could be in for a nice payday if its
consumer foray proves fruitful.
* The joint venture with Faroudja involves a technology partnership
and joint marketing and distribution agreement. The product, called
the LS700, is definitely aimed at the serious television and home
theater junkie-someone willing to pay the $12,995 price.
According to the company, the consumers' money buys an
easy-to-install, light-weight and space efficient unit that can
project a 16-by-9 movie format image. In Focus provided the LCD
* display technology and Faroudja added video processing technology
"Until now, home-theater LCDbased projectors didn't provide the
rich video quality needed to the meet the expectations of
home-theater enthusiasts," said John Harker, In Focus chief
* executive. "Our relationship with Faroudja allows both companies to
apply our development and marketing expertise to bring a new class
of home-theater LCD projectors to market."
Rick Owens, an analyst who follows In Focus for D.A. Davidson &
Company Inc. in Portland, said the venture is a sound move,
particularly considering the potential for exposure in a new market
and the small investment In Focus is making. The guts of the
projector is a product that In Focus already makes, which means it
didn't spend a lot of money or time on development, Owens said. The
* projector will be distributed through Faroudja's home-theater dealer
network, which means In Focus won't be on the hook for much in the
way of distribution and marketing costs, he added.
Through the joint venture, In Focus can gauge the potential for
home theater products and see if connoisseurs will move away from
the traditional cathode ray tube products, Owens continued.
Assuming the product enjoys solid success, a good move could turn
into a great one, he said.
While this may be a relatively riskfree way for In Focus to test
the consumer market, it may be more impor- ' tant to its partner,
* Faroudja.
The 71-employee Sunnyvale, Calif., company appears to need a shot
in the arm. Its stock has been trading in the $3 to $4 range in
recent months after trading as high as $12.75 earlier in 1998. Over
the first three quarters of 1998, revenue fell 25 percent to $9.7
million, and the consensus Wall Street estimate is for the company
to lose 24 cents per share.
* A Faroudja spokesperson could not be reached for comment this week.
I0607 * End of document.
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