InFocus Corp. (Nasdaq: INFS) announced on October 10 that it was considering strategic alternatives after a disappointing third quarter. The Wilsonville, Ore.-based projector manufacturer said it expects third-quarter revenue to log in at between $78 million and $82 million, down from $97.6 million in the second quarter. The company also said it expects its pro-forma operating losses to rise from the $8.9 million in losses it sustained in the second quarter. InFocus said its gross margins would likely decline quarter-over-quarter, because of factors that include an inventory charge for one of its projector models, which has been selling below expectations. The company, which has retained the services of Bank of America, says it is committed to further cost reductions.
Queenstake Resources Ltd. (TSX: QRL; Amex: QEE), a Denver-based gold mining and exploration company, has not found a road paved with gold in its Nevada operations. The company is pursuing alternatives, including selling the company or its assets. Toronto-based Blackmont Capital will be serving as a financial advisor to Queenstake. The company also said that after a review of its operations in Jerritt Canyon, Nevada, it intends to cut costs there. The Jerritt Canyon gold operation is the company’s principal asset. Queenstake became a gold producer when it bought the Jerritt Canyon operations in 2003.
UTStarcom (Nasdaq: UTSI), an Alameda, Calif.-based IP-based networking service and support provider, is on the market and exploring financing alternatives. The company has set up a special committee for that purpose to be headed by Ying Wu, CEO of UTStarcom China (Wu will not take over as global CEO at the beginning of 2007 as previously planned); UTStarcom has also enlisted the aid of Merrill Lynch. The company has shown consistent sales and revenue shortfalls through the second quarter of this year. Before going public, UTStarcom had been backed by Intel Capital and Mobius Venture Capital. The company, founded in 1991, sells broadband, wireless and other telecom services to operators internationally. It has research and design operations in the United States, Canada, China, Korea and India.
Nobility Homes (Nasdaq: NOBH), an Ocala, Fla.-based provider of manufactured homes, has wheeled itself onto the selling block, citing costs related to Sarbanes-Oxley compliance and “other costs of being a public company.” The company has set up a special committee of its independent board members and hired the services of investment banking firm Savvian Advisors. The company generated positive cash flow in the second quarter of this year for the first time in three quarters. However, its cash flow was still 53% below where it was a year previously. The company operates two manufacturing plants, 19 retail centers, a finance company joint venture and an insurance company subsidiary.
DOV Pharmaceutical (Nasdaq: DOVP), a Somerset, N.J.-based biopharmaceutical company, is exploring a sale and other strategic alternatives in light of a busted public stock and hemorrhaging cash. The company was notified by the Nasdaq exchange on Oct. 5 that its stock had been trading below the $1 per share minimum for 30 consecutive days. DOV has hired HSBC Securities as its investment bank and plans to slash non-core clinical development platforms and other research projects and focus on its core research platforms. Prior to going public in 2002, DOV was funded by Merlin BioMed Group, Oppenheimer Renaissance Partners and Reservoir Capital Group.