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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: John Stichnoth who wrote (21721)	3/29/2000 4:21:00 PM
From: john99walsh	Read Replies (1) \| Respond to of 54805

John, Nice report on InFocus Systems. There was just a report in our local newspaper (The Oregonian) about project Dragonfly that resulted in their LP330 lightweight projector. It looks like really fun technology. Included is a ?Digital Micromirror Device? that has 786,432 electronically controllable mirrors in a 1024 by 768 grid. These mirrors are used to selectively deflect light of various colors in order to project a high intensity image. The various colors are produced by a wheel spinning at 7200 revolutions a minute that slices up light from a white light source. Again, it all looks like fun!! John Walsh

To: John Stichnoth who wrote (21721)	3/29/2000 5:02:00 PM
From: Mike 2.0	Read Replies (2) \| Respond to of 54805

John, re INFS, I think Epson is in this business too...I saw an effective ad showing an actual size photo of their projector, well within the 8 1/2" width and much shorter than 11" length of the magazine page. How does Epson's product stack up? Also an old client of mine had bought a CTX projector almost randomly, surprisingly small and sharp...did they come up in your analysis? At first I thought the innovation of smaller size, better picture, lower cost, etc. is not discontinuous, but OTOH, we will get to a point where each sales rep, trainer, and corporate presenter will get their OWN projector instead of shagging the one luggable projector in the office before someone else does. That seems somewhat discontinuous...does anyone (dis)agree? Sort of like the metamorphosis of the PC, from big honking desktop to luggable early Compaqs, to laptops of today...interesting idea! Mike

To: John Stichnoth who wrote (21721)	3/30/2000 7:46:00 AM
From: Apollo	Respond to of 54805

John, thank you very much for your concise Hunt report on InFocus. Stan <eom>

To: John Stichnoth who wrote (21721)	4/1/2000 1:19:00 AM
From: bythepark	Respond to of 54805

John, Thank you very much for your work on InFocus Systems. I live on the Oregon Coast and have been collecting their shares for nearly 8 years and am intending to be at this year's Annual Meeting. With their current 46 patents and the 44 additional ones they are picking up with their acquisition of Proxima ... it seems to me that they are well on their way to being the premier Projection Technology company. Note: Tom Carson is InFocus' legal counsel... > InFocus also converted its relationship with Motorola, a joint-venture called > Motif, from a manufacturing to a technology development operation, Carson > said. The joint venture is particularly focused on technology that increases > the performance of displays used in cellular phones and personal digital > assistants such as the Palm Pilot products, Carson said. Motif has five > licensing agreements which have not yet been announced, and is holding > numerous discussions with other potential licensees, he said. Best regards, Alan Here are the Proxima patents they are acquiring: US06005557 12/21/1999 Image display stabilization apparatus and method US05933132 08/03/1999 Method and apparatus for calibrating geometrically an optical computer input system US05859623 01/12/1999 Intelligent display system presentation projection arrangement and method of using same US05815229 09/29/1998 Microlens imbedded liquid crystal projection panel including thermal insulation layer US05721565 02/24/1998 Zooming protection display control system and method of using same US05717418 02/10/1998 Ferroelectric liquid crystal display apparatus and method of making it US05704700 01/06/1998 Laser illuminated image projection system and method of using same US05700076 12/23/1997 Laser illuminated image producing system and method of using same US05699195 12/16/1997 Projection lens arrangement and method of using same USD0386509 11/18/1997 Integrated liquid crystal display projector US05682181 10/28/1997 Method and display control system for accentuating US05669688 09/23/1997 Display panel projector and method of using same US05606436 02/25/1997 Liquid crystal projection panel construction and method of making same US05594468 01/14/1997 Optical system auxiliary input calibration arrangement and method of using same US05555002 09/10/1996 Method and display control system for panning US05543819 08/06/1996 High resolution display system and method of using same US05541646 07/30/1996 Display image stabilization apparatus and method of using same US05517263 05/14/1996 Image projection system and method of using same US05515079 05/07/1996 Computer input system and method of using same US05512967 04/30/1996 Projector US05510861 04/23/1996 Compact projector and method of using same US05504501 04/02/1996 Optical input arrangement and method of using same US05502459 03/26/1996 Optical auxiliary input arrangement and method of using same US05499036 03/12/1996 Display control apparatus and method of using same US05489923 02/06/1996 Method and apparatus for calibrating an optical computer input system US05483382 01/09/1996 Projection lens and method of using same USD0364379 11/21/1995 Surge protector US05459484 10/17/1995 Display control system and method of using same US05453803 09/26/1995 Low profile liquid crystal projector and method of using same USD0360426 07/18/1995 Integrated liquid crystal display projector US05400095 03/21/1995 Display projection method and apparatus an optical input device therefor USD0350536 09/13/1994 Under computer monitor power controlling base US05321450 06/14/1994 Low profile liquid crystal projector and method of using same US05300944 04/05/1994 Video display system and method of using same US05299039 03/29/1994 Stacked display panel construction and method of aligning pixel elements thereof US05298892 03/29/1994 Stacked display panel construction and method of making same US05276436 01/04/1994 Television signal projection system and method of using same US05264835 11/23/1993 Enhanced color display system and method of using same US05250851 10/05/1993 Video monitor support and power distribution assembly US05225875 07/06/1993 High speed color display system and method of using same US05181015 01/19/1993 Method and apparatus for calibrating an optical computer input system US05177629 01/05/1993 Liquid crystal display with an optical fluid layer US05153568 10/06/1992 Liquid crystal display panel system and method of using same US05137484 08/11/1992 Method of making a liquid crystal display construction US05062001 10/29/1991 Gray scale system for visual displays

To: John Stichnoth who wrote (21721)	3/8/2001 5:40:08 PM
From: bythepark	Read Replies (1) \| Respond to of 54805

INFS and Front-Projection Technology: The only game in town? John, I'm not sure quite what to make of this article ... but at first reading it seems to validate that INFS with its front-projection technology, is 100% in the right part of the Projection Business, because the demand for rear-projection devices has reportedly "dried up". > As soon as multimedia projectors became bright enough for presenters to work > with the boardroom lights on, the bulky form factor of self-contained > rear-projection units came to look unnecessary. --alan avavenue.com Demand for rear-projection monitors dries up --------------------------------------------------- By Paul Pirner - associate editor for AVAvenue.com February 27, 2001 Related Links The most significant recent development in self-contained rear-projection presentation displays doesn't have anything to do with new projection engines, lenses, cabinets or screens. Instead, the biggest news is that the market segment itself has all but vanished. NEC Technologies has discontinued its entire line of data-ready rear-projection monitors in favor of plasma monitors. Sharp, Panasonic, Hitachi and Mitsubishi have succumbed to the ghostly calls of "convergence" and recast their entire rear-projection product lines for the consumer industry, repackaging them as home-theater components and "DLP TVs." Sony has likewise exiled most of its rear-projection lineup to the consumer arena, and Barco just plain dropped its line. Rear-projection presentation monitors featured a large lenticular screen atop a cabinet containing a projector and a set of mirrors. The images they produced were big and bright, and because the systems were self-contained, they were somewhat mobile and easy to use. Even so, the market for rear-projection monitors eroded to the point of extinction. "The rear-projection presentation monitor, as we know it, is going away," says Sweta Dash, director of LCD and projection research for Stanford Resources, a market and technical research firm specializing in the display industry. What happened to the market? According to Dash, the presentation segment of the rear-projection market was small to begin with and has been squeezed inexorably by plasma and front-projection technology. While plasma monitors are a few inches thick and look space-age high-tech, rear-projection units can be a few feet thick and lack the futuristic sexiness of a plasma panel. A professional-grade rear-projection monitor cost about the same as a middle-of-the-pack plasma monitor, and apparently enough buyers were willing to accept this tradeoff. Dash says plasma displays started grabbing significant market share from rear-projection displays in 1999. Stand-alone projectors also began overwhelming the rear-projection market in the past few years as brightness levels skyrocketed and prices swooned. As soon as multimedia projectors became bright enough for presenters to work with the boardroom lights on, the bulky form factor of self-contained rear-projection units came to look unnecessary. Rear-projection products that still exist Despite this bleak outlook, a handful of manufacturers continue to make rear-projection units. Toshiba makes two models, the P400LC and the P401LC, which sell for about $17,000 a piece. However, one would have to be pretty blind not to recognize these display units for what they are: videowall cubes. In fact, many former manufacturers of rear-projection computer displays have shifted their rear-projection efforts over to videowall cube production. According to Dash and display-industry expert Pete Putman, Sony still produces a traditional rear-projection monitor, the KL-X9200. However, the company has repackaged this model as a consumer product and even showed it at the Consumer Electronics Show in January. And therein lies the problem: Consumer products come with significantly less robust warranties than industrial products. What's more, they're shielded differently - a fact that makes it illegal to sell them as industrial products. Aside from Sony, a couple of other manufacturers still make products that resemble the rear-projection monitors of the past. Sanyo still produces a 70-inch LCD unit, the PLC-XR70N, which carries an MSRP of $17,995, while Spectrum Video produces a 72-inch LCD model that sells for about $30,000. Demand remains for certain applications Spectrum Video's product manager, Ken Rose, acknowledges that the market for self-contained rear-projection monitors is shrinking, he asserts that as a whole, rear-projection applications (including videowall cubes and custom installations) are doing just fine. He adds about half of Spectrum Video's installation clients have asked for rear-projection technology for their boardrooms and other installations. However, Rose admits that he sold only six or so self-contained rear-projection monitors last year. The market for rear-projection presentation monitors may still have some life left in it - but at the same time, it appears to be dying out at the hands of "convergence.

To: John Stichnoth who wrote (21721)	3/12/2001 1:22:47 AM
From: bythepark	Read Replies (1) \| Respond to of 54805

John - Its has been a year, let's update your INFS Project Hunt Report in which you proposed them as a King not a Gorilla, because "they offer a product, not an enabling technology". InFocus had a solid year of progress in 2000 and pretty well tracked your numbers. For years I had a position in this as my one 'Growth at a Reasonable Price" technology stock and, really appreciated your summation last year: > Contrary to some on this board, I believe it IS possible to pay too much for a > Gorilla or King. Valuation still should play a part in our decision to buy. > For Gorilla/King investors interested in getting into companies at > "reasonable" P/S and P/E ratios, INFS may fit the bill. It has a legitimate > claim on Kingship in a fast growing market, with some interesting patents in > several areas of applied optics, both in their "kingdom" and in related areas. > The related area patents have the potential to generate additional substantial > revenues. On the strength of the growth in their sector alone, the current > price appears very reasonable. Do you still feel this way, John ? INFS currently is trading at 15 times last year's earnings and is down about 10 points from last year at this time. The continue to be debt free and at year's end had $86 million in cash and cash equivalent on hand. And, Management has firmly predicting that earnings will be moving up again this year. 1. Their merger with Proxima seems have gone very well (sales and earnings from ongoing operations were up about 30 percent). They continue to be debt-free and continuing to gain market share. 2. Your report mentioned their patents. Last year saw considerable success in turning their IP into a revenue stream. In March they licensed their Merlin technology which is protected by two patents to PXLW in exchange for $2.4 million plus 156,863 shares of PXLW currently worth about $2 million. The Merlin technology allows a digital projector or display to correctly process analog signals. According to a March 17, 2000 Business Journal article, InFocus has converted their Motif joint-venture with Motorola from a manufacturing to a technology development relationship. Motif is focused on technology that increases the performance of of displays used in cellular phones and personal digital assistants such as Palm Pilot products. Then in August they licensed to TXN a similar but more advanced IP technology - Kestral: > in which Texas Instruments purchased the rights to embed proprietary InFocus > technology in its Digital Light Processing™ (DLP) technology solutions. DLP™ > technology serves in a variety of applications, providing flawless image > quality for data/video projectors, video walls, large venue projectors, home > theatre systems and other display products The TXN agreement involved an unspecified one time licensing fee with ongoing royalties. And INFS and TXN agreed to expand their ongoing codevelopment efforts aimed at creating more functional and less complicated Digital Light Processing technologies. 3. They are entering the Home entertainment market this Fall, with projectors offering single-wire connectivity to either a Television, HDTV, video & DVD player, digital camera or computer. The company has stated in a CC that this move will effectively "double their addressable market". 4. Waiting in the wings so as to speak is their investment in Colorado Microdisplay, (http://www.comicro.com) and the production start-up of their Shanghai General Electric joint venture in China. Thanks again for all your work on this Project Hunt and I am looking forward to seeing what other thread members might add to this picture... --alan