Exhibit 99.1
Focus Enhancements Announces Preliminary Fourth Quarter and Full Year
2006 Financial Results
- Expects Revenue of Approximately $10.3 Million for the Fourth
Quarter, an Increase of 69 Percent Over the Fourth Quarter of 2005 -
CAMPBELL, Calif.--(BUSINESS WIRE)--Feb. 20, 2007--Focus
Enhancements, Inc. (NASDAQ:FCSE), a worldwide leader in semiconductor
technology for the Ultra Wideband (UWB) wireless and PC-to-TV
conversion markets and in video production, announced preliminary
financial results for the fourth quarter and full year 2006.
Fourth Quarter 2006 Preliminary Comments
Total revenue for the fourth quarter of 2006 is expected to be
approximately $10.3 million, which represents a 69 percent increase
over the $6.1 million reported in the same period last year. For the
quarter, the Semiconductor business is expected to contribute
approximately 30 percent of revenue and the Systems business is
expected to contribute approximately 70 percent. Gross margin as a
percentage of revenue is expected to be approximately 48 percent for
the quarter, compared to 39 percent in the fourth quarter of last
year. For the quarter, operating expenses are expected to be
approximately $7.2 million, compared to $5.5 million last year. Net
loss per share for the quarter is expected to be approximately $0.04,
compared to $0.05 in the fourth quarter last year.
Full Year 2006 Preliminary Comments
Total revenue for the year ended December 31, 2006 is expected to
be approximately $37.5 million, which represents a 52 percent increase
over $24.6 million reported for 2005. For the year, the Semiconductor
business is expected to contribute approximately 33 percent of revenue
and the Systems business is expected to contribute approximately 67
percent. Gross margin as a percentage of revenue is expected to be
approximately 46 percent for the year, compared to 37 percent last
year. For the year, operating expenses are expected to be
approximately $26.3 million, compared to $24.0 million in 2005. Net
loss per share is expected to be approximately $0.23, compared $0.25
in 2005.
Cash and cash equivalents plus available credit facilities is
expected to increase to approximately $6.5 million at December 31,
2006 from $5.8 million at September 30, 2006.
"We met our quarterly and annual revenue expectations based on the
successful execution on our strategy to further penetrate the portable
media player (PMP) market, which was complemented by the strong
performance of our FireStore and ProxSys(R) products," said Brett
Moyer, CEO of Focus Enhancements. "Our TV-out semiconductor technology
is powering many of the leading PMPs, and our products continue to be
designed into more portable media devices. In addition, we are working
to commercialize our leading UWB chipset to enable wireless video
connectivity, for which we anticipate revenue in the third quarter of
2007. Based on our product pipeline and the strong reception our
products received at CES in January, we believe we are well positioned
for further growth in 2007."
These expected results are preliminary. There can be no assurance
that the company's final results for the fourth quarter and full year
2006 will be within the range specified above. Final results for the
fourth quarter ended December 31, 2006 are expected to be reported on
March 1, 2007 at which time management will conduct a conference call.
About Focus Enhancements, Inc.
Focus Enhancements Inc. (NASDAQ CM: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 Systems 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 plans to complete its Ultra Wideband
(UWB) semiconductor chip designs, 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 unforeseen increased costs in research and
development, the company's ability to maintain adequate funding to
develop and implement UWB technology, the performance and acceptance
of its UWB technology when successfully moved to silicon and the risk
factors specified in the company's Form 10-K for the year ended
December 31, 2005, Form 10-Q for the periods ended March 31, 2006,
June 30, 2006 and September 30, 2006, as well as other filings with
the SEC. These statements are based on information as of February 20,
2007 and the company assumes no obligation to update any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
CONTACT: Lippert/Heilshorn & Assoc. for Focus Enhancements
Mary Magnani, 415-433-3777 (Investors)
mmagnani@lhai.com