8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2007

INFOCUS CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number: 000-18908

Oregon	93-0932102
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
27500 SW Parkway Avenue, Wilsonville, Oregon	97070
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code: 503-685-8888
Former name or former address if changed since last report: no change

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR      240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On October 30, 2007, InFocus Corporation (“InFocus”) issued a press release announcing a net loss of $2.8 million, or $0.07 per share, on revenues of $75.8 million for its third quarter ended September 30, 2007. InFocus also announced a net loss of $23.7 million, or $0.60 per share on revenues of $227.1 million for the nine-month period ended September 30, 2007. A copy of the press release is attached as Exhibit 99.1.

We provide in the press release certain non-GAAP financial measures, including pro forma net loss, pro forma loss from operations, and pro forma net loss per share. As used herein, “GAAP” refers to accounting principles generally accepted in the United States. These non-GAAP financial measures exclude restructuring and other non-recurring charges from the directly comparable GAAP measures. As required by Regulation G, the press release contains a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures. We believe the non-GAAP measures are useful to investors because they provide an alternative method for measuring the operating performance of our business, excluding certain non-recurring and non-cash items that would normally be included in the most directly comparable GAAP financial measure. Our management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating our operating performance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAP financial measures as reported by us may not be comparable to similarly titled items reported by other companies.

The information in this Item 2.02 and in Exhibit 99.1 attached hereto shall not be deemed ”filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the ”the Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibit is attached hereto and this list is intended to constitute the exhibit index:

99.1 Press release dated October 30, 2007 regarding third quarter and year to date 2007 operating results.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:   October 30, 2007	INFOCUS CORPORATION
	By	: /s/ Mark H. Perry
	Mark H. Perry
	Interim Chief Financial Officer
	(Principal Financial Officer)

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EX-99.1

EXHIBIT 99.1

Investor Relations Contacts:	Public Relations Contacts:
Mark Perry	Martin Flynn
Chief Financial Officer	InFocus Corporation
InFocus Corporation	(503) 685-8112
(503) 685-8960

InFocus Announces Third Quarter 2007 Financial Results

Reports third consecutive quarter of improved operating performance

WILSONVILLE, Ore., October 30, 2007 – InFocus® Corporation (NASDAQ: INFS) today announced its third quarter 2007 financial results. On a GAAP basis, the Company reported revenue of $75.8 million and a net loss of $2.8 million, or $0.07 per share, compared to a net loss of $7.8 million, or $0.20 per share, for the second quarter of 2007 and a net loss of $19.4 million, or $0.49 per share for the third quarter of 2006.

Commenting on the third quarter results, Bob O’Malley, President and CEO stated, “We continued to make measurable progress in improving our operating performance during the third quarter. We increased revenue by 2.9 percent and improved gross margin by 1.9 percent over our second quarter performance. These improvements, coupled with continued focus on improving our cost structure, allowed us to reduce our proforma operating loss by nearly 46 percent from Q2 levels, and 69 percent from Q3 of 2006. Our performance in Q3 marks the third consecutive quarter of increased gross margin, lowered operating expenses and reduced operating losses. While we have not yet reached our goal of profitability, I am proud of the continued progress we have made throughout 2007”

Included in the third quarter 2007 results is a restructuring charge of $0.25 million, which accounted for $0.01 per share. Restructuring charges in the second quarter 2007 were $ 2.1 million or $0.05 per share and $.85 million or $0.02 per share in the third quarter of 2006.

The Company reported total cash, restricted cash, and marketable securities as of September 30, 2007 of $72.7 million, an increase of $5.4 million from Q3 2006 and a decrease of $3.5 from the end of 2006. There were no outstanding borrowings under our line of credit, which was extended to February 28, 2008 during the quarter.

Quarterly Revenue, Unit, ASP and Gross Profit Comparisons

Third quarter revenues of $75.8 million were up 2.9 percent compared with second quarter revenues and down 6.7 percent from revenues in the third quarter of 2006. Projector unit shipments totaled approximately 85,000 units in the third quarter, an increase of approximately 18 percent from the prior quarter and approximately 15 percent compared to the third quarter of 2006. Average Selling Prices (ASPs) during the quarter decreased by approximately 12 percent. Although ASPs declined, overall gross margin increased by 1.9 percent due to improved product mix and lower costs associated with warranty repair operations. These changes resulted in gross margin of 18.2 percent in Q3, up from Q2 levels of 16.3 percent.

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Regionally, Americas revenue increased 2 percent while units shipped increased 18 percent from the second quarter of 2007. Revenue and unit shipments in Europe increased by 3 percent and 17 percent, respectively. Asian revenues increased 7 percent compared to the second quarter of 2007 while units increased 20 percent from the second quarter.

Operating Expenses Comparison Excluding Charges

Operating expenses, exclusive of charges, were $17.1 million in the third quarter, an improvement of $1.0 million from the second quarter. The reduction is the result of the Company’s continued efforts to align its cost structure with expected business levels and return to profitability.

Other income for the third quarter was $0.8 million compared to other income of $0.3 million in the second quarter and other expense of $2.4 million in the third quarter of 2006.

Balance Sheet

Total cash, restricted cash, and marketable securities as of September 30, 2007 were $72.7 million, with no outstanding borrowings, an increase of $5.4 million from June 30, 1997. Day’s sales outstanding in Accounts Receivable for the third quarter were 59 days, an increase of 2 days from the prior quarter. Inventory levels decreased $4.7 million during the quarter to $28.5 million reflecting the Company’s continued emphasis on improved supply chain management.

In closing, Mr. O’Malley commented, “I am pleased with the progress the Company demonstrated in the third quarter. I am proud of the steps that the Management team has put in place to achieve these results and of our employees, who have continued to deliver improved results over the past three quarters. We will continue to focus on improving our operating performance in Q4 and into 2008.”

Reconciliation of GAAP and Pro Forma Information

The Company has recorded charges that are excluded from operating expenses and earnings for comparative purposes. In accordance with SEC FR-59, attached is a Statement of Reconciliation of GAAP Earnings.

Conference Call Information

The Company will hold a conference call today at 11:00 a.m. eastern time. The session will include brief remarks and a question and answer period. The conference can be accessed by calling (866) 904-2211 (U.S. participants) or (706) 634-4707 (outside U.S. participants) and Pin # 21076692, or via live audio Web cast at www.infocus.com. Upon completion of the call, the Web cast will be archived and accessible on our website for individuals unable to listen to the live telecast. The conference call replay will also be available through November 9, 2007 by dialing (800) 642-1687 (U.S.) or (706) 645-9291 (outside U.S.) and Pin # 21076692.

Forward-Looking Statements

This press release includes forward-looking statements, including statements related to anticipated revenues, gross profits, expenses, earnings, availability of components and

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projectors manufactured for the Company, inventory, backlog, and new product introductions. Investors are cautioned that all forward-looking statements involve risks and uncertainties and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: 1) in regard to revenues, gross profits, inventory and earnings, uncertainties associated with market acceptance of and demand for the Company’s products, the impact competitive and economic factors have on business buying decisions, dependence on third party suppliers, the impact of regulatory actions by authorities in the markets we serve; 2) in regard to product availability and backlog, uncertainties associated with manufacturing capabilities, uncertainties associated with working with contract manufacturing partners, availability of critical components, and dependence on third party suppliers; 3) in regard to new product introductions, ability of the Company to make timely delivery of new platforms, uncertainties associated with the development of technology, uncertainties with product quality and availability with the reliance on off-shore contract manufacturing, dependence on third party suppliers and intellectual property rights; and 4) in regard to the Company’s further restructuring actions, uncertainties associated with the timing and impact of further cost reductions and ability to grow revenues and gross profits. Investors are directed to the Company’s filings with the Securities and Exchange Commission, including the Company’s 2006 Form 10-K and 2007 Form 10-Qs, which are available from the Company without charge, for a more complete description of the risks and uncertainties relating to forward-looking statements made by the Company as well as to other aspects of the Company’s business. The forward-looking statements contained in this press release speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward looking statements to reflect events or circumstances after the date of this press release.

About InFocus Corporation

InFocus® Corporation (NASDAQ: INFS) is the industry pioneer and a leader in the digital projection market. Over twenty years of experience and engineering breakthroughs provide continuous improvements in what you see in the marketplace, and deliver immersive audio visual impact in business, education and home environments. We make the presentation of ideas, information, and entertainment a vivid, unforgettable experience, and believe our product contributions set the standard for what a big picture experience should be like. For more information, visit us at www.infocus.com or call us toll-free at 800.294.6400 (U.S. and Canada).

InFocus Corporation’s global headquarters are located in Wilsonville, Oregon, USA, with regional offices in Europe and Asia. For more information, visit the InFocus Corporation web site at www.infocus.com or contact the Company toll-free at 800.294.6400 (U.S. and Canada) or 503.685.8888 worldwide.

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InFocus, IN, ASK, Proxima, LiteShow, LP, ScreenPlay, Play Big, Work Big, Learn Big
and The Big Picture are either registered trademarks or trademarks of InFocus
Corporation in the U.S. and abroad.

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InFocus Corporation

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2007			2006			2007			2006
Revenues	$	75,790		$	81,231		$	227,078		$	290,892
Cost of revenues	62,026			70,900			192,850			249,137
Gross margin	$	13,764		$	10,331		$	34,228		$	41,755
Operating expenses:
Marketing and sales	$	8,424		$	12,116		$	27,510		$	39,552
Research and development	3,367			3,826			11,333			13,150
General and administrative	5,305			5,198			15,613			16,901
Regulatory assessments	—			5,086			—			5,086
Restructuring costs	225			850			4,675			2,775
	$	17,321		$	27,076		$	59,131		$	77,464
Loss from operations	$	(3,557	)	$	(16,745	)	$	(24,903	)	$	(35,709	)
Other income (expense), net	764			(2,387		)	1,422			(12,161		)
Loss before income taxes	(2,793		)	(19,132		)	(23,481		)	(47,870		)
Provision for income taxes	27			274			174			724
Net Loss	$	(2,820	)	$	(19,406	)	$	(23,655	)	$	(48,594	)
Basic and fully diluted net loss per share	$	(0.07	)	$	(0.49	)	$	(0.60	)	$	(1.23	)
Basic and fully diluted shares outstanding	39,786			39,659			39,682			39,644

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InFocus Corporation

Consolidated Balance Sheets

(In thousands)

(Unaudited)

	September 30,			December 31,
	2007			2006
Assets
Current Assets:
Cash and cash equivalents	$	49,782		$	53,716
Marketable securities	52			104
Restricted cash, cash equivalents, and marketable securities	22,875			22,413
Accounts receivable, net of allowances	49,968			50,060
Inventories	28,526			40,107
Other current assets	10,661			10,706
Total Current Assets	161,864			177,106
Property and equipment, net	3,116			3,961
Other assets, net	918			1,189
Total Assets	$	165,898		$	182,256
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	59,436		$	52,046
Other current liabilities	19,132			26,800
Total Current Liabilities	78,568			78,846
Other Long-Term Liabilities	4,062			3,147
Shareholders’ Equity:
Common stock and additional paid-in capital	168,728			167,465
Other comprehensive income:
Foreign currency translation	36,111			30,662
Unrealized loss on equity securities	(72		)	(20		)
Accumulated deficit	(121,499		)	(97,844		)
Total Shareholders’ Equity	83,268			100,263
Total Liabilities and Shareholders’ Equity	$	165,898		$	182,256

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InFocus Corporation

Reconciliation of GAAP Earnings

(In thousands, except per share amounts)

(Unaudited)

	Third Quarter 2007													Second Quarter 2007
	Net Loss				Net Loss Per Share			Operating Expenses			Loss from Operations			Net Loss					Net Loss Per Share			Operating Expenses			Loss from Operations
GAAP	$		(2,820	)	$	(0.07	)	$	17,321		$	(3,557	)	$			(7,788	)	$	(0.20	)	$	20,167		$	(8,183	)
Adjustments:
Restructuring charges	$		225		$	—		$	(225	)	$	225		$			2,050		$	0.06		$	(2,050	)	$	2,050
Proforma excluding adjustments	$		(2,595	)	$	(0.07	)	$	17,096		$	(3,332	)	$			(5,738	)	$	(0.14	)	$	18,117		$	(6,133	)
	Third Quarter 2007													Third Quarter 2006
	Net Loss				Net Loss Per Share			Operating Expenses			Loss from Operations			Net Loss					Net Loss Per Share			Operating Expenses			Loss from Operations
GAAP	$		(2,820	)	$	(0.07	)	$	17,321		$	(3,557	)	$	(19,406			)	$	(0.49	)	$	27,076		$	(16,745	)
Adjustments:
Restructuring charges	$		225		$	—		$	(225	)	$	225		$	850				$	0.02		$	(850	)	$	850
Regulatory assessments	$		—		$	—		$	—		$	—		$	5,086				$	0.13		$	(5,086	)	$	5,086
Proforma excluding adjustments	$		(2,595	)	$	(0.07	)	$	17,096		$	(3,332	)	$	(13,470			)	$	(0.34	)	$	21,140		$	(10,809	)
	Year-to-Date 2007													Year-to-Date 2006
	Net Loss				Net Loss Per Share			Operating Expenses			Loss from Operations			Net Loss					Net Loss Per Share			Operating Expenses			Loss from Operations
GAAP	$	(23,655		)	$	(0.60	)	$	59,131		$	(24,903	)	$		(48,594		)	$	(1.23	)	$	77,464		$	(35,709	)
Adjustments:
Restructuring charges	$	4,675			$	0.12		$	(4,675	)	$	4,675		$		2,775			$	0.07		$	(2,775	)	$	2,775
Regulatory assessments	$	—			$	—		$	—		$	—		$		5,086			$	0.13		$	(5,086	)	$	5,086
Proforma excluding adjustments	$	(18,980		)	$	(0.48	)	$	54,456		(20,228		)	$		(40,733		)	$	(1.03	)	$	69,603		$	(27,848	)

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