EX-99 2 focus.htm FOCUS ENHANCEMENTS, INC. PRESS RELEASE

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