Some good info:
M-Systems' Year-End and Fourth Quarter Results Set New Records;
Profitability Achieved in the Fourth Quarter
TEL-AVIV, Israel, Feb. 12 /PRNewswire/ -- M-Systems Flash Disk Pioneers Ltd. (Nasdaq: FLSHF - news) today announced results for the fourth quarter of 1997 and for the year ended December 31, 1997.
Revenues for the quarter ended December 31, 1997 increased to $5,880,000 from $2,143,000 in the fourth quarter of 1996 (an increase of 174 percent). The Company's profit for this period was $118,000 (1 cent per share) compared to a loss of $519,000 in the fourth quarter of 1996. The Company's gross margin went up this quarter to 2,308,000 (39 percent) from 826,000 (38 percent)in the fourth quarter of 1996.
Revenues for the year ended December 31, 1997 increased to $19,034,000 from $11,750,000 for the year ended December 31,1996 (an increase of 62 percent). The Company reported a consolidated loss for 1997 of $1,596,000 (compared to $987,000 in 1996) in addition to a one time loss attributed to R&D in process (relating to the C-One acquisition) of $3,970,000. Financial results for 1997 include the results of C-One Technology Corp., a Taiwanese corporation, and its U.S. subsidiary, Pretec, acquired by M-Systems during the first quarter of 1997. Assuming that the previously reported divestment of M-Systems' non-Flash Taiwanese operations is successfully completed by the end of the first quarter of 1998 as contemplated by the parties, then the
results of C-One and Pretec will no longer be consolidated with those of M-Systems; M-Systems' results will, however, be consolidated with those of M-Systems Asia, Ltd., a newly incorporated Taiwanese subsidiary of M-Systems, which is to acquire C-One's Flash-related technology and business.
Dov Moran, the Company's President, said, ''The fourth quarter of 1997 was an excellent quarter for us, with record revenues and, for the first time as a public company, net income. The Company achieved profitability earlier than expected, and is seeing growing sales worldwide, particularly in the United States. Furthermore, our gross margin has improved during each quarter of 1997: from 27 percent to 29 percent to 35 percent to 39 percent in the fourth quarter. We are also very pleased with our recent progress in restructuring our operations in Taiwan. The divestment of the non-Flash operations in Taiwan will assist us in realizing our dual objectives of intensifying our focus on our core Flash business while realizing a return on the effective disposition of our non-Flash business. While our sales level may decrease somewhat in the first quarter of 1998, due to the fact that C-One's sales will no longer be consolidated with ours, we nevertheless look forward to sustained improvement in our gross margin and to continued profitability.''
''We are also particularly pleased with the exceptional success of our DiskOnChip(R) 2000 product. The growing demand for this product is evidenced by the large number of motherboards that have now added a DiskOnChip 2000- specific socket, making the DiskOnChip 2000 their preferred data storage solution. The DiskOnChip 2000 is already becoming a primary revenue generator for the Company, even though this is a product that was introduced less than a year ago,'' continued Mr. Moran, adding: ''We also have been seeing significant growth in the sales of our groundbreaking FFD product (the Fast Flash Disk -- the fastest Flash Disk in the world, with extended capacities of up to an unprecedented 1,792 MBytes) and in the rest of our product line. The
Company's focus on the embedded systems, industrial computers and Telecom markets, together with the significant improvements we have made in our professional sales staff and marketing channels in the United States, are bearing fruit. We believe we will continue to see this trend of more demand, more design wins, and more sales of DiskOnChip, FFD, and PC Card products in 1998,'' concluded Mr. Moran.
Mr. Moran will discuss the Company's earnings results and the investment of the Company's non-Flash operations in Taiwan in a group conference call today at 12:00 p.m. U.S. EST. Those who wish to participate may call 617-225-2125. An instant replay will also be available starting at 4:00 p.m. U.S. EST by calling 703-925-2505, replay code # 126829. |
