FOCUS Investment of Over $7 Million In Low-Cost Video Conversion ASICs Expected To Bring Unprecedented Revenue Growth
WILMINGTON, Mass.--(BUSINESS WIRE)--September 8, 1999--
Integration of FS400 Family of ASICs By Key Manufacturers In
Rapidly-Growing Internet Appliance, TV, and PC Video Conversion
Markets To Drive Growth
FOCUS Enhancements, Inc. (NASDAQ:FCSE) announced today that it expects to capitalize on its $7 million investment in the development of FS400 video conversion ASICs beginning fourth quarter, 1999, when this technology will be integrated by key players in the Internet appliance, TV, and PC video conversion markets. The Company believes that it is poised to take advantage of substantial revenue growth due to the projected size of these OEM markets, expecting unprecedented sales from the integration of the FS400 family of ASICs, in particular, by Internet Appliance (IA) manufacturers. The IA market, which has a market size of three million units, is expected to grow to over 50 million units by the year 2003. Announcements regarding specific agreements with major TV, PC design, and IA manufacturers will be forthcoming.
"The fourth generation FS400 NTSC/PAL digital video co-processor has recently raised the bar in video quality standards while significantly lowering cost," explained Thomas Massie, Chairman and CEO of FOCUS Enhancements. "That combination of high quality and low cost has sparked the interest of top manufacturers in several key OEM markets, in particular, the explosive IA market." With the newly sampling i-Net TV family of FS400 ASICs, FOCUS is providing video quality ideal for the Internet set-top box and Internet information appliance market. "Large manufacturers in this market see the TV as the wave of the future and are currently battling for access into as many as one out of every two households, where people are now viewing the Internet from a TV in their living room," said Massie. "FOCUS is poised to take advantage of this fierce competition because we believe that we offer the very best TV display management technology in the world at the right price."
In addition, FOCUS is taking advantage of the PC video conversion chip market with the i-Net TV ASIC which will interface with the technology of the major PC design manufacturers for personal computers that require TV-out compatibility. "By driving the cost way down and video quality way up, the i-Net TV ASIC can be integrated in multimedia PCs which require TV-out at a very low price," said Massie. FOCUS estimates that approximately ten percent of all PCs manufactured per year require TV-out and multimedia capabilities, with the projected size of the video conversion market at eight million PCs per year. Integration of the i-Net TV ASIC will allow FOCUS to take full advantage of this market.
FOCUS also plans to the exploit growth opportunities of the television market, where 70 million new TVs are manufactured every year. By designing the FS400 ASIC at a very low cost, major TV manufacturers can now design any TV in the world to be "computer-ready", and VGA, SVGA, and XVGA compatible. "Since the color television was introduced, there hasn't been any major technological advance for TV manufacturers until now," commented Massie. "Putting the FS400 chip right on the printed circuit board of a TV dramatically reduces cost. This is a major technology advantage for this market, and we believe it can possibly become a standard in 32-inch or larger television sets."
In addition, FOCUS expects continued growth from its TView line of consumer video conversion set-top boxes and the Pro AV high-end line of professional broadcast-quality products. Both product lines integrate the FS400 ASIC technology and are sold through retailers, VARs, and mail order companies globally under the FOCUS brand name, TView.
For More Information
Editors seeking more information should contact Suzanne Kimball, voice/FAX: (801) 294-4779, ext. 1; e-mail: suzkimball@aol.com. For sales information, contact FOCUS directly at 600 Research Drive, Wilmington, Massachusetts 01887; (978) 988-5888; FAX: (978) 988-7555; Internet: www.FOCUSinfo.com.
FOCUS Enhancements, Inc. is an industry leader in the development and marketing of advanced, proprietary video conversion ASICs for the rapidly converging, multi-billion dollar Internet, computer, and television industries. The Company's technology, which is sold globally through Original Equipment Manufacturers (OEMs) and resellers, merges computer-generated graphics and television displays for Internet viewing, presentations, training, education, video teleconferencing, and home gaming markets. In addition, the Company is developing a family of products that will enable the current installed base of televisions, VCRs, and camcorders to remain functional in upcoming HDTV environments.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
CONTACT:
FOCUS Enhancements, Inc.
Steve Sheldon, (978) 988-5888
Communications Manager
www.FOCUSinfo.com
or
Suzanne Kimball, (801) 294-4779, ext. 1
Press Relations
suzkimball@aol.com
KEYWORD: MASSACHUSETTS
BW1143 SEP 08,1999
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