SmartDisk Reports Second Consecutive Quarter of Record Revenues and Earnings
January 26, 2000 09:15 AM
NAPLES, Fla.--(BUSINESS WIRE)--Jan. 26, 2000--SmartDisk Corporation SMDK , a company whose products simplify the digital lifestyle, today reported record results for its fourth quarter 1999.
SmartDisk reported revenues of $14.9 million for the fourth quarter ended December 31, 1999, which represented a 130% increase over revenues of $6.5 million in the fourth quarter 1998. For the twelve months ended December 31, 1999, the Company reported revenues of $40.3 million, which represented an increase of 163% over revenues of $15.3 million for the same period in 1998.
The Company reported earnings of $2.4 million or $0.15 per diluted share for the quarter ended December 31, 1999, compared with a net loss of $2.1 million or ($0.24) per share for the same period in 1998. For the twelve months ended December 31, 1999, the Company reported earnings of $1.0 million or $0.07 per share versus a net loss of $5.5 million or ($0.68) per share for the same period in 1998.
The Company also reported an increase in fourth quarter 1999 gross profit to $7.3 million or 49% of revenue, from $0.5 million or 7% in the fourth quarter 1998. The Company also continued its dedication to an ongoing investment in new product research and development in the fourth quarter, reporting an increase in operating expenses of $1.7 million over the comparable period of the prior year, yet a decrease to 29% of revenues, as compared to 40% of revenues in the fourth quarter of the prior year.
"Worldwide consumer demand for our products, strong relationships with a growing roster of partners, and a rapidly evolving product line propelled our revenue and earnings beyond expectations," said Michael S. Battaglia, president and CEO. "The markets we serve are young and growing rapidly. SmartDisk is committed to being a leader in meeting the needs of such worldwide marketplaces."
Highlights of the quarter also included significant achievements in both research and development efforts and in new product releases. These included completion of the Company's first major research and development contract for Sony Corporation, which resulted in the recognition of approximately $2.4 million in revenue during the fourth quarter. Product highlights included the announcements of two new FlashPath adapters that herald the product line's compatibility with a growing number of flash memory card formats. They included the FlashPath for Sony's Memory Stick(TM), called Memory Stick/Floppy Disk Adaptor, and the FlashPath for SanDisk's MultiMediaCard. Volume shipments of Memory Stick/Floppy Disk Adaptor commenced during the quarter; in addition, the Company reported that shipments of FlashPath for SmartMedia to U.S. distributors substantially increased in volume during the period.
About SmartDisk Corporation
SmartDisk Corporation's products simplify the transfer of images, music, voice and data among personal computers, the Internet and digital appliances that use flash memory cards and/or smart cards. The Company's objective is to use its proprietary and patented technologies to capitalize on the growing demand for digital devices and increased usage of the Internet. SmartDisk's investors include Toshiba, Hitachi, NEC, SanDisk, SCM Microsystems and others. For more information, go to www.smartdisk.com.
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