Product category:
Memory Devices and Modules
News Release from: M-Systems
Edited by the Electronicstalk Editorial
Team on 14 November 2005
M-Systems grows by more than 50%
M-Systems reports record revenues and EPS for third quarter 2005. Quarterly revenues grew by more than 50% year-over-year to $133 million and earnings per share more than doubled to $0.34.
M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey product and the multimedia mobile handset market with its Mobile DiskOnChip products and MegaSIM technology
This article was originally published on Electronicstalk on 16 Nov 2006 at 8.00am (UK)
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M-Systems also sells data storage products to the embedded systems market, including for digital set-top boxes and thin client computers.
M-Systems reports record revenues and EPS for third quarter 2005; Quarterly revenues grew by more than 50% year-over-year to $133 million and earnings per share more than doubled to $0.34.
For the third quarter of 2005, revenues were $132.6 million, representing an increase of 25% compared with revenues of $105.7 million for the second quarter of 2005 and an increase of 55% compared with revenues of $85.7 million for the third quarter of 2004.
Further reading
Handsets to support Flash-based SIM cards
The new 3G multimedia model U830 handset from LG Electronics will deliver a new range of powerful capabilities with support for M-Systems' MegaSIM card.
SIM cards magnify handset storage
M-Systems has announced the availability of high-capacity mSIM MegaSIM cards through its Microelectronica subsidiary.
Embedded Flash drive enters mass production
M-Systems has commenced mass production of the mDOC H3 embedded Flash drive (EFD) and will start shipping to top-tier customers for their high-volume mobile projects.
Gross margins for the third quarter of 2005 were 24.8%, similar to the second quarter of 2005, and slightly higher than gross margins of 24.5% in the third quarter of 2004.
For the third quarter of 2005, net income was $13.9 million, compared with net income of $7.6 million in the second quarter of 2005, and $6.1 million in the third quarter of 2004.
Earnings per share on a fully diluted basis for the third quarter of 2005 were $0.34, representing an increase of 79% compared with earnings per share of $0.19 for the second quarter of 2005 and an increase of 113% compared with earnings per share of $0.16 for the third quarter of 2004.
Commenting on the results, Dov Moran, President and Chief Executive Officer of M-Systems, said: "Our results for the third quarter continue our trend of significant top and bottom line growth, both sequentially and on a year-over-year basis".
"Our performance during the quarter was driven by continued strength across each of the end markets in which we operate".
He continued: "During the quarter we took steps to further solidify our foundation for long term growth".
"Our agreement with Hynix is expected to provide us with improved purchasing terms and will broaden our component supply options".
"As part of our expanded relationship, we are also developing a DiskOnChip embedded flash drive (EFD) for the mobile market with Hynix".
"Adding Hynix as an additional source for our DiskOnChip EFD will better enable us to meet the demand of handset vendors for secure, reliable, high density embedded storage in the fast-growing multimedia handset market".
"In addition to Hynix, we are engaged in dialogue with various other flash vendors and continue to explore opportunities to expand our supply sources as well as co-operate with flash vendors to bring new products and technologies to our different end markets".
Moran concluded: "Continued strong performance in our target markets, coupled with the strategic initiatives we have undertaken, position us for continued success in the fourth quarter and beyond".
"End market demand is growing at a remarkable pace, with new technological requirements, such as increased capacity and security in mobile handsets, continually emerging".
"We believe our value-added technology, strong IP, solid market position and partnerships with industry leaders will enable us to capitalise on the multitude of opportunities that lie ahead".
"We are increasing our full year 2005 guidance, which previously called for revenues of at least $450 million and earnings per share at or above $1.00, to revenues of at least $490 million and earnings per share of approximately $1.08".
"Our revised guidance is indicative of the strong demand for our products in our end markets".
"With our excellent team, strong core group of products and additional planned initiatives, we believe that we have a sound platform for continued growth and profitability".
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