Flash memory technology company M-Systems Flash Disk Pioneers (Nasdaq: FLSH) (Nasdaq: FLSH - News) has reported revenue of $114.1 million for the fourth quarter of 2004, representing an increase of 136% compared with revenue of $48.3 million for the fourth quarter of 2003, and an increase of 33% compared with revenue of $85.7 million for the third quarter of 2004.
Net profit for the quarter was $9.0 million, or $0.24 per share, compared with $6.1 million, or $0.16 per share, in the third quarter of 2004, and $1.9 million, or $0.06 per share, in the fourth quarter of 2003.
The results beat the consensus analysts' estimate, which was for EPS of $0.21 on revenue of 110.34 million. The revenue figure was higher even than the highest estimate, which was $111 million.
Non-GAAP gross margins for the fourth quarter of 2004 were 21.7%, representing a decrease compared with 24.5% in the third quarter of 2004, and 25.3%
For 2004 as a whole, revenue increased by 167% to $348 million, compared with $130 million for 2003. Net profit for the year was $24.2 million, or $0.66 per share, compared with $0.9 million, or $0.03 per share, for 2003.
M-Systems president and CEO Dov Moran said, "M-Systems is well prepared and in position to take advantage of the expected continued future growth in our core markets. With our recent announcements of the new U3 standard, the Mobile DiskOnChip G4 and H-Series, MegaSIM as well as new products for the embedded market, we are well positioned for continued success and healthy growth in the future."
"Our current projections for 2005 are for revenues of at least $450 million, with earnings per share at or above $1.00. Due to seasonality after the end of year holidays, we are projecting for the first quarter of 2005 revenues of at least $90 million, with earnings per share at or above $0.14. We also expect to see improvement in our gross margins during the year, beginning as early as the first quarter."
M-Systems shares closed at $20.28 on Friday, giving the company a market cap of 704 million. In pre-market trading, the shares are down 4%, at $19.46.
Published by Globes [online], Israel business news - www.globes.co.il - on January 31, 2005