Focus Enhancements Acquires Two Digital Systems Manufacturers
Focus Enhancements has entered into an agreement to acquire all assets and assume certain liabilities of Minneapolis-based digital video systems manufacturer Visual Circuits Corp. (VCC), for stock worth approximately $8.9 million based on a recent closing price of $2.67 per share. Focus also signed a letter of intent to acquire Germany-based Como Computer & Motion GmbH, also a digital video systems manufacturer, for stock worth approximately $1.8 million.
Brett Moyer, president and CEO of Focus Enhancements said the acquisitions would improve the company's position in Europe, and give it a greater foothold in the United States through a presence in Wal-Mart and Best Buy stores. Moyer estimates Focus Enhancements' 2004 revenue will range between $23 million and $26 million.
"As of this date, (the company) does not anticipate it will receive additional FS454 chip purchase orders from Microsoft, nor do we expect to ship to Microsoft after the first quarter of 2004," he said, although Focus would continue to market the KS454 to other manufacturers.