InFocus announced yesterday that it will be purchased by Image Holdings Corporation in a cash deal for $0.95 a share, or about $39 million. That’s about half the share price from a year ago, and about one-tenth of the company’s five year high price. Still, it is good news as it means that InFocus is more likely to survive and see another day. The company has been one of the leading manufacturers of front projectors, for business, education, and entertainment applications. The company products are generally based on the Texas Instruments DLP technology.
The timing is interesting because the projector market is splitting into two segments. The traditional segment — projectors for business, education, and home entertainment — has been flat and is likely to show single-digit percentage declines in units and dollars this year, according to Dr. William Coggshall of Pacific Media Associates. InFocus has a large share of this segment in the U.S., but less so in other parts of the world. The other segment is the “New Era” projectors including the tiny palm size units and the models designed to be built into cell phones. InFocus has not yet announced a product in this area, according to Coggshall, but its brand could be a valuable starting point for entry into this market.
As a result, the new owners may be planning to do something innovative with the InFocus name. Stay tuned….