Video technology company Focus Enhancements said it received $10 ...
Video technology company Focus Enhancements said it received $10 million in funding from the sale of convertible notes to private investors. CEO Brett Moyer said the money “will enable us to complete” the development of Talaria Ultra Wideband technology…
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and “fund general operating requirements to support our expected revenue growth of over 30% in 2006.” The growth “will be driven by the introduction of multiple new products as well as new and expanding customer relationships in our Semiconductor and Systems Businesses,” Moyer said. The company also announced preliminary results for its 4th quarter ended Dec. 31, saying it expects to report sales of about $6 million -- lower than the $7.5 million it previously estimated. But Focus said it expects to post a loss of only about 5 cents per share instead of the 6-7 cents previously estimated. Moyer said “timing issues impacted shipments of a new HD FireStore product for one of our key Systems Business partners” in the quarter. He also said the company’s semiconductor business is less dependent on one major customer now, noting that the FS454 semiconductor chip used mainly in Microsoft’s first Xbox console represented about 10% of its total revenue of $20 million in fiscal 2004 and 54% of its semiconductor revenue. The company said Microsoft “ceased placing significant orders for the FS454” and Focus “significantly diversified its customer base” since then. Focus also said it expects first half 2006 revenue to grow in semiconductors thanks to “increased sales of chips for Personal Media Players (PMP), resulting from our strong showing” at CES early this month, where its FS45X series of video processors were displayed in products from 121 manufacturers including Toshiba’s Gigabeat and DigiCube’s I-Station. The company also expects its Systems Business to be boosted by sales of its FireStore product line as it starts shipping 2 new HD FireStore products: The DR-HD100 to JVC and the FS-100 to Panasonic for use in their new HD camcorders.