Lumisys posts drop in Q2 revenues
As anticipated by company officials, film digitizer market leader Lumisys felt the effects of a softer backlog, posting a 10% decline in revenues in its second quarter. One day after reporting the results, the Sunnyvale, CA, company found itself the
As anticipated by company officials, film digitizer market leader Lumisys felt the effects of a softer backlog, posting a 10% decline in revenues in its second quarter. One day after reporting the results, the Sunnyvale, CA, company found itself the target of a lawsuit filed by a group of disgruntled shareholders.
For the second quarter, Lumisys posted revenues of $5.3 million, compared with $5.9 million reported for the same period in 1996. Net income also dropped to $512,000 in the second quarter. The company reported a profit of $896,000 in the second quarter of 1996.
In reporting first-quarter results three months ago, Lumisys executives said that they expected revenue growth to slow in the next financial period, due to lower order volume. While that prediction came true, the company reported a strengthening of orders in the second quarter, and executives believe that momentum looks good for the company both in the U.S. and internationally.
In other Lumisys news, the firm has been hit by a lawsuit filed by a group of shareholders dissatisfied with the decline in the vendor's share price in the last year. Although the company declined to discuss the specific allegations of the lawsuit, Lumisys believes the case is without merit and the company will defend it vigorously, said Craig Klosterman, COO and CFO.