Focus Enhancements Presenting at Today's Roth Capital Partners 18th
Annual Growth Stock Conference
Company Expands Preliminary Full Year 2005 Results and 2006 Financial
Outlook
CAMPBELL, CA -- (MARKET WIRE) -- 02/21/06 -- Focus Enhancements, Inc.
(NASDAQ: FCSE) today announced additional fourth quarter and
full-year 2005 preliminary results and expanded on its financial
outlook for the full-year 2006.
On January 30, 2006, the company announced it expects fourth quarter
2005 revenue to be approximately $6.0 million and expects a loss per
share of approximately $0.05; thereby expecting full-year 2005
revenue of $24.5 million and a net loss of $0.25 per share. The
company also expects gross margins for the year 2005 to approximate
36 percent.
"In 2005, we laid the foundation for 30 percent-plus revenue growth
in 2006, with the expectation that our 2006 revenue would increase to
over $32 million," stated Brett Moyer, president and chief executive
officer of Focus Enhancements. "Our Semiconductor Business is poised
to benefit from the growth opportunities in the portable media player
(PMP) market with reference designs with AMD and Freescale as well as
the internet protocol television (IPTV) markets with reference
designs with AMD and Intel. In the Systems Business, we continue to
add to our list of our industry leading customers such as Canon, JVC,
and Panasonic. Our recently announced $10 million in convertible debt
funding positions us well as we near the completion of our Ultra
Wideband (UWB) development effort. Currently, tape-out of the
digital chip is expected in the first quarter 2006 and first silicon
of the digital chip and the sampling of Evaluation Kits are expected
in the second quarter 2006. With revenue from other products in the
Semiconductor Business growing rapidly, we believe its revenue
contribution will increase from an expected 15 percent in 2005 to
approximately 20 percent in 2006."
These expected results are preliminary and unaudited. There can be no
assurance that the company's final results for the fourth quarter and
full-year 2005 will be within the ranges specified above. Final
results for the fourth quarter and year ended December 31, 2005 are
expected to be reported in early March, at which time management will
conduct a conference call. The date and time of the conference call
will be announced.
Focus Enhancements will present at the Roth Capital Partners 18th
Annual Growth Stock Conference today, February 21, 2006, at 11:30 a.m.
PT. Presenting from management will be Brett Moyer, president and
chief executive officer. The presentation will be webcast live and
archived at the company's web site, www.focusinfo.com.
About Focus Enhancements, Inc.
Focus Enhancements Inc. (NASDAQ: FCSE), headquartered in Campbell,
CA, is a leading designer of world-class solutions in advanced,
proprietary video and wireless video technologies. The company's
Semiconductor Group develops integrated circuits (ICs) for
high-performance applications in the video convergence market,
including IPTV set-top boxes and portable media players. Focus
Enhancements is currently developing a wireless IC chip set based on
the WiMedia UWB standard and designed to be compatible with Wireless
USB and used in personal computer (PC), consumer electronics (CE),
and mobile electronics applications. The company's System Group
develops video products for the digital media markets, with customers
in the broadcast, video production, digital signage and digital asset
management markets. More information on Focus Enhancements may be
obtained from the company's SEC filings, or by visiting the Focus
Enhancements home page at http://www.Focusinfo.com.
Safe Harbor Statement
Statements in this press release which are not historical including
statements regarding management's intentions, hopes, expectations,
representations, plans or predictions about the future are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include
statements regarding management's expectations of funding
requirements in 2006, demand for Focus Enhancements' products, which
impacts revenue and the gross margin percentage, management's plans
to complete its Ultra Wideband (UWB) semiconductor chip designs, move
UWB technology to silicon, and the performance of its UWB technology
in silicon. Because these forward-looking statements involve risks
and uncertainties, there are important factors that could cause our
actual results to differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ
materially include customers' acceptance of recently introduced
products, changes in customer order patterns, unforeseen increased
costs and delays in research and development, the company's ability to
maintain adequate funding to develop and implement UWB technology, the
ability of the company to migrate its UWB technology to silicon in a
timely manner, if at all, the performance and acceptance of its UWB
technology if and when successfully moved to silicon, and the risk
factors specified in the company's Form 10-K/A for the year ended
December 31, 2004, Forms 10-Q, 10-Q/A and 10-Q for the periods ending
March 31, 2005, June 30, 2005 and September 30, 2005, as well as
other filings with the SEC. These statements are based on information
as of February 21, 2006 and the company assumes no obligation to
update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Focus Enhancements Investors:
Kirsten Chapman / David Barnard, CFA
Lippert/Heilshorn & Assoc.
(415) 433-3777
david@lhai-sf.com
