Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Faroudja FDJA -- Ignore unavailable to you. Want to Upgrade?

To: reid brandon who wrote (186)	1/11/1999 8:52:00 PM
From: Gerald Thomas	Read Replies (1) \| Respond to of 249

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.