It looks like SNDK is cutting prices again....
biz.yahoo.com
Lexar Reports First Quarter Results
Thursday April 28, 4:15 pm ET
FREMONT, Calif.--(BUSINESS WIRE)--April 28, 2005--Lexar Media, Inc. (Nasdaq: LEXR - News), a leading manufacturer and marketer of high-performance digital media and accessories, today reported financial results for the first quarter ended April 1, 2005.
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Total first quarter revenues of $232.4 million increased 41% from $164.7 million in the same period last year and increased 23% sequentially from $188.5 million in the preceding quarter. Product revenues of $231.6 million increased 44% from $161.1 million in the same period last year and increased 24% from $187.4 million in the preceding quarter. As a result of Lexar recording revenues from all retail customers on a sell-through basis effective October 1, 2004, the first quarter of 2005 was the first quarter in which Lexar recorded significant revenue that was deferred from the prior quarter, which had a positive impact on first quarter product revenues and gross margin. Net loss was $9.6 million, or $0.12 per diluted share, as compared to net income of $9.4 million, or $0.11 per diluted share, in the same period last year and net loss of $63.3 million, or $0.80 per diluted share, in the fourth quarter of 2004.
Eric Stang, chairman, CEO and president, Lexar, commented, "We were fortunate to achieve stable and, in some cases, improved pricing during the first quarter. During this period, we executed well against our plan and generated positive operating cash flow through improved working capital management. We also improved our pricing management, reduced sales to unprofitable customers, grew the number of storefronts carrying our products, reduced operating expenses excluding legal expenses and began manufacturing Memory Stick Pro with a Lexar controller."
Financial Outlook
Mr. Stang continued, "Looking at the second quarter, we see pricing pressures have now re-emerged as a major competitive issue as we see certain competitors moving to reduce prices aggressively in the marketplace. As a result of this uncertainty, our visibility is limited, and we are providing only a general outlook for the second quarter. We anticipate second quarter revenues to be approximately $200 million and a net loss for the quarter due primarily to price reductions and price protection obligations as well as ongoing legal expenses."
Corporate Highlights
Lexar recently:
Announced that the Court will hold a hearing on May 16, 2005 to consider Lexar's motion for an injunction against Toshiba Corporation and Toshiba America Electronic Components, Inc. and Lexar's claim for unfair competition, which is based on California Business and Professions Code Section 17200.
Issued $60 million in aggregate principal amount of its 5.625% Senior Convertible Notes due 2010.
Partnered with Ubisoft, one of the world's largest videogame publishers, for a major value-add promotion. |
