In Focus has optimistic 3Q, but analysts still aren't convinced.(In Focus Systems Inc.)

Third-quarter earnings indicate In Focus Systems Inc. is on the comeback trail, but the financial community says the Wilsonville company still has a ways to travel before it's out of the woods.

Analysts, however, said the maker of projection devices is definitely moving in the right direction.

"They are making some progress and could be turning things around, maybe as early as the fourth quarter, or into 1999, barring some, thing like a U.S. recession," said Rick Owens, an analyst with D.A. Davidson & Co. Inc. in Portland.

Last week In Focus reported stronger than expected third-quarter earnings and revenue. The success put at least a temporary halt to a half-year financial performance debacle, setting the stage …