M-Systems To Exceed Previous Guidance
Thursday January 13, 8:12 am ET
M-Systems' Fourth Quarter Earnings Release and Conference Call Scheduled For January 31, 2005
M-Systems Adopts New Financial Presentation Method
KFAR SABA, Israel--(BUSINESS WIRE)--Jan. 13, 2005-- M-Systems (Nasdaq: FLSH - News) announced today that following a strong holiday season it expects to exceed its previous guidance for the fourth quarter, with revenues to exceed $110 million and earnings per share to exceed $0.20.
The company also announced that, commencing with its fourth quarter results, it will adopt a new presentation method for its consolidated statements of operations to better reflect its business due to the fact that a growing portion of the company's revenues are generated from sources other than product sales, including investments accounted for under the equity method. For ease of reference, the company has prepared the accompanying tables to demonstrate the application of the new presentation method to the first three quarters of 2004.
As shown in the tables, certain income related to the company's investment accounted for under the equity method, previously included in revenues, has been reclassified as a reduction of cost of goods sold. This change has no effect on the company's operating income, net income or EPS for any prior periods. Commencing with its fourth quarter and 2004 year end results, all M-Systems financial results will be presented in accordance with this method.
The company will release its 2004 fourth quarter financial results on Monday, January 31, 2005, during pre-market hours. Following the earnings announcement, M-Systems will host a conference call at 10:00 a.m. EDT. The call can be accessed by dialing: +1 (973) 582-2776. The call will also be available live on the Internet at www.kcsa.com. Following the call, the webcast will be archived for a period of 30 days. A replay of the call will be available beginning at approximately 12:00 p.m. EST, January 31, 2005, until February 5, 2005 at 11:59 p.m. To listen to the replay, please call +1 (973) 341-3080. To access the replay, users will need to enter the following code: 5588550.
About M-Systems
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. For more information, please contact M-Systems at www.m-systems.com.
All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.
This press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties which may cause actual results to vary significantly. These risks include, but are not limited to: the effect of global economic conditions in general and conditions in M-Systems' industry and target markets in particular, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints including dependence on flash component suppliers; changes in M-Systems' and its customers' inventory levels and inventory valuations; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; market acceptance of new products and continuing product demand; the impact of competitive products and pricing on M-Systems' and its customers' products and markets; the development, release and sale of new products by strategic suppliers and customers; the development and growth of anticipated markets for M-Systems' and its customers' products; and other risk factors detailed from time to time in M-Systems' filings with the Securities and Exchange Commission. M-Systems assumes no obligation to update the information in this press release and disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Reference to M-Systems' website above does not constitute incorporation of any of the information thereon into this press release.
New Presentation Method (Single-step Form)
M-SYSTEMS FLASH DISK PIONEERS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data
Nine months
Three months ended ended
March June September September
31 30 30 30
---------- ----------- --------- -----------
2004
--------------------------------------------
Unaudited
--------------------------------------------
Revenues (a) $63,548 $84,189 $85,725 $233,462
----------- ---------- ---------- ----------
Costs and expenses:
Cost of goods sold 47,022 63,740 64,715 175,477
Research and
development, net 4,629 5,977 6,670 17,276
Sales and marketing 7,480 8,246 7,620 23,346
General and
administrative 1,464 1,625 1,626 4,715
----------- ---------- ---------- ----------
Total costs and expenses 60,595 79,588 80,631 220,814
----------- ---------- ---------- ----------
Operating income 2,953 4,601 5,094 12,648
----------- ---------- ---------- ----------
Financial income, net 711 813 1,017 2,541
Net income $ 3,664 $ 5,414 $ 6,111 $ 15,189
=========== ========== ========== ==========
Basic net earnings
per share $ 0.12 $ 0.15 $ 0.17 $ 0.45
=========== ========== ========== ==========
Diluted net earnings per
share $ 0.11 $ 0.14 $ 0.16 $ 0.42
=========== ========== ========== ==========
Weighted average number of
shares used in computing
basic net earnings per
share 31,354,098 35,024,437 35,116,012 33,831,516
========== ========== ========== ===========
Weighted average number of
shares used in computing
diluted net earnings per
share 34,455,969 37,757,393 37,315,848 36,509,737
========== ========== ========== ===========
(a) Revenues for the three months ended March 31, June 30 and
September 30, 2004, include income generated from a venture, accounted
for under the equity method, in the amounts of $1,104, $3,059, $6,531
respectively and $10,694 for the nine months ended September 30, 2004.
Prior Presentation Method (Multiple-step Form)
M-SYSTEMS FLASH DISK PIONEERS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data
Nine months
Three months ended ended
March June September September
31 30 30 30
---------- ---------- ---------- -----------
2004
--------------------------------------------
Unaudited
--------------------------------------------
Revenues (a) $64,208 $86,092 $87,775 $238,075
Cost of goods sold 47,682 65,643 66,765 180,090
----------- ---------- ---------- ----------
Gross profit 16,526 20,449 21,010 57,985
----------- ---------- ---------- ----------
Operating expenses:
Research and
development, net 4,629 5,977 6,670 17,276
Sales and marketing 7,480 8,246 7,620 23,346
General and
administrative 1,464 1,625 1,626 4,715
----------- ---------- ---------- ----------
Total operating expenses 13,573 15,848 15,916 45,337
Operating income 2,953 4,601 5,094 12,648
Financial income, net 711 813 1,017 2,541
----------- ---------- ---------- ----------
Net income $ 3,664 $ 5,414 $ 6,111 $ 15,189
=========== ========== ========== ==========
Basic net earnings
per share $ 0.12 $ 0.15 $ 0.17 $ 0.45
=========== ========== ========== ==========
Diluted net earnings
per share $ 0.11 $ 0.14 $ 0.16 $ 0.42
=========== ========== ========== ==========
Weighted average number of
shares used in computing
basic net earnings per
share 31,354,098 35,024,437 35,116,012 33,831,516
========== ========== ========== ===========
Weighted average number of
shares used in computing
diluted net earnings per
share 34,455,969 37,757,393 37,315,848 36,509,737
========== ========== ========== ===========
(a) Revenues for the three months ended March 31, June 30 and
September 30, 2004, include income generated from a venture, accounted
for under the equity method, in the amounts of $1,764, $4,962, $8,581
respectively, and $15,307 for the nine months ended September 30,
2004. |
