7/20...FLSH...M-Systems Reports $0.24 Per Share Profit and 246% Increase in Revenues for Second Quarter
TEL AVIV, Israel--(BUSINESS WIRE)--July 20, 2000--M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH - news) today announced results for the second quarter of 2000 and the six months ended June 30, 2000.
For the quarter ended June 30, 2000, revenues increased 246 percent to $21,711,000, compared with $6,270,000 in the corresponding period of 1999. The Company reported net income for the period of $3,470,000, or $0.24 per share, compared to a loss of $606,000, or $(0.06) per share, in the quarter ended June 30, 1999. Gross margins for the quarter declined from 33 percent to 30 percent.
The Company's results for the second quarter of 2000 also represent an increase in revenues of 43 percent, from the $15,204,000 reported in the first quarter of 2000, and an increase of 212 percent in net income from the $1,112,000 reported in the first quarter of 2000.
For the six-month period ended June 30, 2000, revenues increased by 227 percent to $36,915,000, compared with $11,275,000 in the corresponding period of 1999. The Company reported net income for the period of $4,582,000, or $0.34 per share, compared with a loss of $1,311,000, or $(0.14) per share, for the six months ended June 30, 1999. Gross margins for the six months declined from 34 percent to 30 percent.
Dov Moran, M-Systems' President, stated: ``We are very happy with our results and are pleased with our revenues, gross profit and bottom line, all significantly above expectations. We continue to follow our successful course: cooperation with all of our partners; more design wins; increasing our sales; and, importantly, increasing profits.''
Moran continued, ``These results were the culmination of a great deal of effort and activities on the part of our management and staff alike. During the quarter, we announced a new form factor of our DiskOnChip, which allows customers more flexibility and a low height flash disk solution. We also doubled the capacity of our 2.5'' FFD and announced broad market support by Linux providers for DiskOnChip. New design wins for a variety of Internet appliances and embedded systems were achieved with leading companies such as MiTAC, eZex, Unicon, VCON, Netier, Captivate Networks, Symbol, and others.``
Moran concluded, ``We are looking forward very optimistically to the future, aware of our huge potential, but also mindful of the efforts which will be required.''
Moran will discuss the Company's earnings results and the other news discussed herein in a group conference call today at 11:00 a.m. U.S. EDT. Those who wish to participate may call 415/217-0050. A replay will also be available, starting July 20, 2000, at 1:00 p.m. U.S. EDT and ending July 21, 2000 at 7:00 p.m. U.S. EDT, by calling 303/804-1855, replay code 767265.
About M-Systems Flash Disk Pioneers Ltd.
M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH - news) is a leading developer, manufacturer and marketer of innovative data storage products, known as flash disks, that are primarily used in Internet appliances, network infrastructure equipment and other embedded systems. The Company's flash disks provide the functionality of a mechanical hard drive on a solid-state silicon chip. M-Systems was first to bring to market a complete flash disk in a single die using breakthrough DiskOnChip Millennium technology. The Company's products are based on its patented TrueFFS technology, and include the DiskOnChip and Fast Flash Disk (FFD) families. For more information, contact M-Systems at 8371 Central Avenue, Suite A, Newark, Calif. 94560. Telephone: 510/494-2090. E-mail: info@m-sys.com and, on the Internet, m-sys.com.
NOTE: 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, elated to: dependence on flash component suppliers to keep up with rising industry demand and the Company's growing supply requirements on a timely basis; timely product and technology development/upgrades and the ability to manage growth and ramp-up production effectively as needed; market acceptance of new products and continuing product demand; the impact of competitive products and pricing on the Company's and its customers' products and markets; development, release and sales of new products by strategic suppliers and customers; development and growth of anticipated markets for the Company's and its customers' products; changing economic conditions and exchange rates worldwide; and other risk factors detailed in the Company's most recent annual report, its prospectuses dated Aug. 8, 1996, July 23, 1997 and March 7, 2000, respectively, and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the Information in this release.
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M-SYSTEMS FLASH DISK PIONEERS LTD.
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
U.S. dollars in thousands
June 30, December 31,
2000 1999
------------------- -------------------
Unaudited Audited
------------------- -------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 81,772 $ 5,528
Short-term bank deposits 45,347 702
Trade receivables 6,530 3,378
Other accounts receivable
and prepaid expenses 3,211 1,049
Inventories 46,875 13,303
------------------- -------------------
Total current assets 183,735 23,960
------------------- -------------------
INVESTMENTS AND LONG TERM
RECEIVABLES 165 376
------------------- -------------------
SEVERANCE PAY FUND 830 655
------------------- -------------------
PROPERTY AND EQUIPMENT,
NET 1,946 1,800
------------------- -------------------
Total assets $ 186,676 $ 26,791
=================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 7,576 $ 5,838
Other accounts payable
and accrued expenses 6,899 2,412
------------------- -------------------
Total current liabilities 14,475 8,250
------------------- -------------------
ACCRUED SEVERANCE PAY 1,212 1,048
------------------- -------------------
MINORITY INTEREST - 19
------------------- -------------------
SHAREHOLDERS' EQUITY:
Share capital 5 4
Additional paid-in
capital 182,501 33,569
Accumulated deficit (11,517) (16,099)
------------------- -------------------
Total shareholders'
equity 170,989 17,474
------------------- -------------------
Total liabilities and
shareholders' equity $ 186,676 $ 26,791
=================== ===================
M-SYSTEMS FLASH DISK PIONEERS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
U.S. dollars in thousands, except per share amounts
Three months ended
June 30,
--------------------------------
1999 2000
-------------- --------------
Unaudited
--------------------------------
Revenues $ 6,270 $ 21,711
Cost of revenues 4,174 15,150
----------- -----------
Gross profit 2,096 6,561
----------- -----------
Operating expenses:
Research and development,
net 856 1,491
Sales and marketing, net 1,491 2,842
General and administrative 424 726
----------- -----------
Total operating expenses 2,771 5,059
----------- -----------
Operating Income (loss) (675) 1,502
Financial and other income,
net 40 1,968
----------- -----------
Income (loss) before minority
interest in losses of
subsidiary (635) 3,470
Minority interest in losses
of subsidiary 29 -
----------- -----------
Net income (loss) $ (606) $ 3,470
=========== ===========
Basic earnings (loss)
per share $ (0.06) $ 0.26
=========== ===========
Diluted earnings (loss) per
share $ (0.06) $ 0.24
=========== ===========
Weighted average number of
shares used in computing
basic earnings (loss) per
share 9,500,311 13,178,186
=========== ===========
Weighted average number of
shares used in computing
diluted earnings (loss) per
share 9,500,311 14,402,236
=========== ===========
Six months ended
June 30,
-----------------------------
1999 2000
----------- -----------
Unaudited
-----------------------------
Revenues $ 11,275 $ 36,915
Cost of revenues 7,448 25,820
----------- -----------
Gross profit 3,827 11,095
----------- -----------
Operating expenses:
Research and development,
net 1,430 2,408
Sales and marketing, net 3,045 5,233
General and administrative 864 1,229
----------- -----------
Total operating expenses 5,339 8,870
----------- -----------
Operating Income (loss) (1,512) 2,225
Financial and other income,
net 142 2,338
----------- -----------
Income (loss) before minority
interest in losses of
subsidiary (1,370) 4,563
Minority interest in losses
of subsidiary 59 19
----------- -----------
Net income (loss) $ (1,311) $ 4,582
=========== ===========
Basic earnings (loss)
per share $ (0.14) $ 0.38
=========== ===========
Diluted earnings (loss) per
share $ (0.14) 0.34
=========== ===========
Weighted average number of
shares used in computing
basic earnings (loss) per
share 9,500,070 12,098,732
=========== ===========
Weighted average number of
shares used in computing
diluted earnings (loss) per
share 9,500,070 13,526,930
=========== ===========
Year ended
December 31,
1999
------------------
Audited
Revenues $ 30,430
Cost of revenues 20,735
----------
Gross profit 9,695
----------
Operating expenses:
Research and development,
net 3,137
Sales and marketing, net 6,779
General and administrative 1,772
----------
Total operating expenses 11,688
----------
Operating Income (loss) (1,993)
Financial and other income,
net 217
----------
Income (loss) before minority
interest in losses of
subsidiary (1,776)
Minority interest in losses
of subsidiary 122
----------
Net income (loss) $ (1,654)
==========
Basic earnings (loss)
per share $ (0.17)
==========
Diluted earnings (loss) per
share $ (0.17)
==========
Weighted average number of
shares used in computing
basic earnings (loss) per
share 9,940,658
==========
Weighted average number of
shares used in computing
diluted earnings (loss) per
share 9,940,658
==========
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Contact:
M-Systems
Ronit Maor, 972/3-647-7776
ronitm@m-sys.com
or
IR Contacts:
KCSA
Adam J. Rosen or Joseph A. Mansi, 212/682-6300
arosen@kcsa.com
jmansi@kcsa.com |
