Tuesday, July 31, 2007

InFocus' losses shrink, but future remains uncertain

by Mike Rogoway July 31, 2007 10:30AM

InFocus Corp. reported its smallest loss in more than two years this morning, the first quarterly earnings report since a dissident shareholder took control of the Wilsonville company and InFocus removed its chief executive. But the struggling digital projector maker remains in limbo, with its top leadership positions unfilled as InFocus searches for strategic direction.

Second-quarter sales totaled $73.6 million, down from $97.7 million in the second quarter a year ago. InFocus lost $7.8 million, or 20 cents a share. That compared to a $12.8 million loss, 32 cents a share, in the second quarter last year.

InFocus' top two executive positions are both vacant. CEO Kyle Ranson quit in May and his position is open while InFocus searches for a replacement; Chief Financial Officer Roger Rowe quit at the beginning of July and his job is being filled on an in interim basis by a corporate consultant.

New York investment firm Caxton Associates, a major InFocus shareholder that had been highly critical of its leadership, reached a deal to take control of the company's board in June. Before taking over, Caxton had suggested that InFocus should consider winding down or selling its operations and focus on licensing its technology.

This morning, InFocus' interim leadership said only that it wants to increase sales and continue cutting costs. On a conference call with investors and financial analysts this morning, executives said they were not familiar enough with InFocus operations to discuss them in detail. They declined comment on strategic options the company is considering.

At 10:30 this morning, InFocus' share price was down 5 cents to $2.13 on the Nasdaq Stock Market.