M-Systems Ramps Revenues, Earnings in 3Q05 (FLSH)

Flash memory maker M-Systems (ticker: FLSH) joined Sandisk and Lexar in reporting a strong 3Q05. Key data points from M-System's report:

Earnings: $13.9 million (2Q05: $7.6m; 3Q04: $6.1m)

Revenue: $133 million (up 55% year-over-year and 25% sequentially)

Gross margins: 24.8% (24.5% in 3Q04)

ASP per megabite: down 15% from 2Q05

Revenue breakdown by geography: US 46%, Far East excluding Japan 25%, Europe 19%, Japan 10%

Revenue breakdown by market: DiskOnKey to USB flash drive market -- $86m, 65% of revenues (15% growth sequentially); Mobile market, including handsets and other portable devices -- $28m, 21% of revenues (51% growth sequentially); Embedded systems $18m, 14% of revenues (49% growth sequentially)

Operating Expenses: $21m -- 16% of sales (down from 20% in 2Q05)

Balance sheet:

Cash balance end of Q3: $309 million

Positive cash flow from operating activities of $19 million

Guidance:

For 2005: Revenues of 'at least $490 million' and EPS of 'approximately $1.08' (previous: revenues of at least $450 million and EPS at or above $1)

FLSH chart:

Related:

M-Systems Comments on ‘The iPod Nano Effect’ for Flash Memory (FLSH 3Q05 Conf Call Quotes)

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Full disclosure: Editor long FLSH at time of publication.