NDS Corp.'s (NNDS) strong quarter propelled by DirecTV smartcard shipments

NDS Corp. (NNDS) reported results  on February 1, 2005 for
the fiscal second quarter 2005.  Below are some highlights.

Results F2Q05 vs. F2Q04:

• EPS: $0.32 vs. $0.19 (+68%)
• Total revenues: $141.6M vs. 76.5M (+85%)
• CA revenues: $86.7M vs. $41.5M (+210%)
• Gross profit: $87.2M vs. 57.6M (+51%)
• Gross margin: 61.6% vs. 75.3% (-1,370 bps)
• Operating income: $22.5M vs. $9.6M (+230%)
• Net income: $17.9M vs. $10.3M (+74%)
• Free cash flow: $20.2M vs. $36.1M (-44%)
• Cash: $267M vs. 229M (+17%)
• Debt: none

Revenue from News Corp. affiliates

• F2Q05: $102.4M (72% of revenues) vs. F2Q04: $72.3M (95% of revenues)

Fiscal 2005 guidance:

• Revenues: $520M - $540M
• Operating income: $75M - $80M
• Cash generation: equal to operating income

Quick comments:

• Hired Alexander Gersh as new CFO (1/4/05)
• Changed corporate domicile to the U.S. from Australia in 11/04; began reporting in U.S. GAAP
• Completed migration of Sky Italia to NDS platform ahead of schedule; Sky Italia remains piracy free; achieved 3 million subs ahead of schedule
• XTV launched on Israeli YES network
• New cable win: Shenzhen Pathway Video Communications
• Two new deals for Orbis subsidiary (interactive gaming platform)
• Headcount increased by 360 in past year