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Saifun Semiconductors Reports First Quarter 2006 Results
Wednesday April 26, 5:02 am ET
NETANYA, Israel, April 26 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (NASDAQ: SFUN - News), a provider of intellectual property solutions for the non-volatile memory (NVM) market, today announced financial results for the first quarter ended March 31, 2006.
Financial Highlights - GAAP: First quarter 2006 compared with first quarter 2005 (including $9.6 million non-cash revenues).
- Revenues for the quarter were $15.8 million, compared to $22.2 million in the previous year.
- Gross profit for the quarter was $12.1 million, compared to $19.6 million in the previous year.
- Operating income for the quarter was $7.7 million, compared to $14.9 million in the previous year.
- Net income for the quarter was $10.0 million, or $0.34 per basic and $0.31 per diluted share, compared to net income in the previous year of $11.8 million.
- Net income for the quarter included $0.6 million of stock-based compensation (including $0.4 million of income due to a cumulative effect of a change in accounting principle relating to the adoption of SFAS 123R) compared to $1.4 million in the previous year.
Saifun reports its results of operation in accordance with GAAP and additionally on a non-GAAP basis, referred to as Non-GAAP. Non-GAAP information, where applicable, excludes the effect of $9.6 million non-cash revenues resulting from the termination of our former joint venture with Infineon Technologies AG recognized in the first quarter of 2005, excludes the loss from discontinued product operations, and excludes stock based compensation expenses and income.
Financial Highlights - Non-GAAP[1]: First quarter 2006 compared with first quarter 2005.
- Revenues for the quarter were $15.8 million, compared to $12.6 million, an increase of 25% compared to the previous year.
- Licensing revenues for the quarter were $10.5 million compared to $9.3 million, an increase of 13%.
- Service revenues for the quarter were $5.3 million, compared to $3.3 million in the previous year, an increase of 59%.
- Gross profit for the quarter was $12.5 million, compared to $10.2 million.
- Operating income for the quarter was $8.7 million or 55% of revenues, compared to $6.6 million or 52% of revenues in the previous year.
- Net income for the quarter was $10.7 million, or $0.36 per basic and $0.33 per diluted share, compared to net income in the previous year of $6.8 million.
[1] These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. A reconciliation of GAAP statements of operations to Non-GAAP statements of operations is included in the financial statements portion of this release as well as on our website in the Investors section at www.saifun.com.
Saifun's management believes the Non-GAAP information is useful because it can enhance the understanding of the Company's ongoing economic performance and Saifun therefore uses internally the Non-GAAP information to evaluate and manage the Company's operations. Saifun has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results.
Commenting on the results, Kobi Rozengarten, President of Saifun Semiconductors said, "We met or exceeded many of our goals for the quarter, which included achieving an operating profit margin of over 50% excluding stock-based compensation expense. We believe this illustrates the success and profitability of our business model which positions Saifun as an emerging leader in the NVM market.
"We continued to focus on helping our licensees accelerate product launches and deliver more products incorporating NROM to the market. This is reflected in the increase in service revenues as a percentage of total sales.
"Finally, our results this quarter were underscored by our ongoing commitment to take NROM technology to a new level. During the quarter, we taped out Quad NROM designs to two licensees who are working with us on data flash applications. This is another milestone in our initiative to foster broad adoption of NROM technology. We have multiple data flash projects underway with our partners and expect to see data flash products incorporating Quad NROM on the market by the end of 2006. The data flash market represents a sizeable opportunity for Saifun and our NROM technology. With a number of NROM-based data flash products currently in development by our licensees, we believe we are well positioned to capture a significant share of this market."
Lock-Up Agreements
The Company wishes to advise all shareholders that signed a lock-up agreement in connection with the Company's initial public offering that the lock-up agreement will be extended until May 15, 2006 and will not terminate on May 8, 2006 as was previously disclosed. This is because this earnings release has been issued within the 17-day period leading up to the expiration of the 180-day lock-up period as described in that agreement.
Conference Call
Saifun will host a conference call to discuss its financial results and other matters discussed in this press release at 8:30 a.m. EDT today, April 26, 2006. The call will be available live on the Internet at http://ir.saifun.com/phoenix.zhtml?c=183096&p=irol-irhome.
http://biz.yahoo.com/prnews/060426/ukw003.html?.v=60
Dubi
Saifun Semiconductors Adopts Cadence Analog Mixed-Signal Methodology Kit
AMS Kit Combined With Virtuoso(R) Spectre(R) Circuit Simulator Provides Silicon Sign-Off Accuracy for Saifun
Last Update: 8:00 AM ET Apr 25, 2006
SAN JOSE, CA, Apr 25, 2006 (MARKET WIRE via COMTEX) -- Cadence Design Systems, Inc. (CDNS : Cadence Design Systems, Inc.
) today announced that Saifun Semiconductors Ltd., a leading provider of non-volatile memory technology and solutions, has adopted the Cadence(R) Analog Mixed Signal (AMS) Methodology Kit. Leading semiconductor manufacturers use Saifun NROM technology to develop and manufacture a variety of Flash products for the wireless, consumer electronics, networking and automotive markets.
"The Cadence AMS kit helped our designers develop an optimized design methodology for reuse and migration of critical analog mixed-signal blocks for our innovative NROM technology," said Eduardo Maayan, vice president of research and development at Saifun Semiconductors. "Using the kit and Virtuoso Spectre Circuit Simulator, we were able to build a simulation strategy to achieve the best combination of silicon accuracy and speed, as well as beat our design timelines."
Built upon the Virtuoso custom design platform, with links to the Encounter(R) digital IC design platform and the Incisive(R) functional verification platform, the Cadence AMS Methodology Kit enables a more productive top-down, bottom-up design methodology. The components of this kit address the key productivity challenges which affect the predictability and risk of AMS design -- namely fragmented analog, digital, and verification design processes; parasitic effects in AMS; multiple power supplies; and AMS design migration and reuse.
"Cadence continues to put significant investment behind our Vertical Kits strategy, aligning our resources with the way customers want to buy and partners want to sell," said Kelly Perey, vice president of marketing for Verticals at Cadence. "We are extremely pleased to be working closely with Saifun, and providing them with Cadence kits that will enable designers of wireless, wired and consumer electronics devices to achieve higher levels of productivity."
The goal of the Cadence kits approach is to shorten time to productivity by simplifying the application of Cadence technology. Customers can then focus their precious design resources on design differentiation rather than design infrastructure. Cadence kits address application-specific design challenges by combining a verified methodology, packaged in platform flows, with IP and consulting, all demonstrated on a representative reference design.
About Cadence
Cadence enables global electronic-design innovation and plays an essential role in the creation of today's integrated circuits and electronics systems. Customers use Cadence software and hardware, methodologies, and services to design and verify advanced semiconductors, printed-circuit boards and systems used in consumer electronics, networking and telecommunications equipment, and computer systems. Cadence reported 2005 revenues of approximately $1.3 billion, and has approximately 5,000 employees. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at www.cadence.com.
Cadence, the Cadence logo, Spectre, Incisive, Encounter and Virtuoso are registered trademarks of Cadence Design Systems, Inc. in the U.S. and other countries. All other marks are properties of their respective holders.
For more information, please contact: Doron Aronson Cadence Design Systems, Inc. 408-428-4404 doron@cadence.com
SOURCE: Cadence Design Systems, Inc.
Dubi
Saifun raises $133m on Wall St.
The public offering was made at a price per share of $30.25. Saifun Semiconductors' proceeds from the offering will be $11.6 million.
Idan Rabi 6 Apr 06 11:26
Saifun Semiconductors Ltd. (Nasdaq:SFUN) today announced the closing of its public offering at a price per share of $30.25. In total, Saifun raised $133 million.
Of the 4,393,170 shares sold in the offering, 4,053,170 were sold by selling shareholders, including 573,022 in a green shoe offering after the underwriters exercised in full their option to purchase additional shares from the selling shareholders.
In addition, 340,000 ordinary shares were sold by the company.
Saifun stated that it expects to receive net proceeds from the offering of approximately $9.4 million and $2.2 million from the exercise of options by certain of the selling shareholders. In all, Saifun's proceeds will be $11.6 million.
Lehman Brothers acted as sole book-running manager, Citigroup and Deutsche Bank Securities acted as joint lead managers and CIBC World Markets, William Blair & Company, Raymond James and WR Hambrecht + Co acted as co-managers.
Published by Globes [online], Israel business news - www.globes.co.il - on April 6, 2006
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Ida Keidar-Malits Appointed to Saifun Semiconductors' Board of Directors
Monday March 27, 4:02 am ET
NETANYA, Israel, March 27 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (NASDAQ: SFUN - News), a leading provider of intellectual property solutions for the non-volatile memory (NVM) market, today announced that effective as of March 22, 2006, Ida Keidar-Malits has been appointed to serve on the Board of Directors as an outside director.
Ms. Keidar-Malits is a 50% owner and a director of Adres Ltd., an Israeli private company engaged in import, stockholding, processing and distribution of steel as well as in real estate. From 1999 until July 2003, Ms. Keidar-Malits served as a director of Packer Steels & Metals Ltd., a leading Israeli steel and metal service company. From 1998 until July 2002, she served as a director of Elbit Vision Systems Ltd., as well as the Chairman of the Audit Committee and a member of its Remuneration Committee. Ms. Keidar-Malits also acts as a business consultant and mediator. From 1991 until 1997, Ms. Keidar-Malits served as Vice President of Finance and Chief Financial Officer of Elbit Ltd. From 1986 until 1991, Ms. Keidar-Malits served as Corporate Secretary of Elbit and from 1984 until 1996, she served as Head of the Economics Department of Elbit. Ms. Keidar-Malits holds an M.Sc. in industrial management from the Technion, Israel Institute of Technology in Haifa and a B.Sc. in Chemistry & Biochemistry from the Hebrew University in Jerusalem.
About Saifun Semiconductors Ltd.
Saifun is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company's innovative Saifun NROM® technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. Among the companies licensing Saifun NROM are Infineon Technologies, Macronix International, MEI, Sony Corporation, Spansion, and Tower Semiconductors. For more information please check out our website: www.saifun.com
http://biz.yahoo.com/prnews/060327/uksu001.html?.v=36
Dubi
Saifun Semiconductors Ltd. Launches Proposed Public Offering
Thursday March 23, 2:32 am ET
NETANYA, Israel, March 23 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (Nasdaq: SFUN - News) announced today that it has updated the registration statement that it filed with the U.S. Securities and Exchange Commission on March 8, 2005 to provide for a proposed registered offering of 340,000 ordinary shares by the company and an additional 3,480,148 ordinary shares by certain selling shareholders of the company. The selling shareholders have granted the underwriters a 30-day option to purchase from certain selling shareholders an additional 573,022 ordinary shares.
Lehman Brothers Inc. is acting as sole book-running manager, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are acting as joint-lead managers and CIBC World Markets, William Blair & Company, Raymond James and WR Hambrecht + Co are acting as co-managers.
Copies of the preliminary prospectus relating to the offering may be obtained from Lehman Brothers Inc., c/o ADP Financial Services, Prospectus Fulfillment, 1155 Long Island Avenue, Edgewood, New York 11717, by email: monica_castillo@adp.com, or fax +1-(631)-254-7268, or Citigroup Global Markets Inc., 140 58th Street, 8th floor, Brooklyn, NY 11220, by phone +1-(718)-765-6732, or Deutsche Bank Securities Inc. at 1251 Avenue of the Americas, 25th Floor, New York, New York 10005, by email: prospectusrequest@list.db.com, or fax +1-(212)-468-5333.
Saifun provides intellectual property solutions for the non-volatile memory (NVM) market. The company licenses its Saifun NROM® technology to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products.
http://biz.yahoo.com/prnews/060323/ukth001.html?.v=58
Dubi
Saifun plans $150 million secondary offering
The company itself will raise some $9.7 million. The remainder will be an offer for sale by current shareholders.
Roee Bergman 8 Mar 06 15:12
Non-volatile memory technology company Saifun Semiconductors Ltd. (Nasdaq:SFUN) announced today that it had filed a registration statement with the US Securities and Exchange Commission for a proposed registered offering of 340,000 ordinary shares by the company and an additional number of ordinary shares by certain selling shareholders of the company. The company put the total value of the offering, for the purposes of the registration fee, at $150 million. However, sources inform "Globes" that Saifun shareholders will sell shares to the tune of $200-250 million. The company would not confirm this.
The planned secondary offering by Saifun was first reported by "Globes." Saifun made its IPO in November last year.
At its current share price of $28.17, Saifun itself will raise some $9.7 million. The remainder of the offering will be in the offer for sale by current shareholders.
The selling shareholders are expected to grant the underwriters a 30-day option to purchase additional ordinary shares.
Lehman Brothers Inc. is acting as sole book-running manager, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are acting as joint- lead managers and CIBC World Markets, William Blair & Company, Raymond James and WR Hambrecht + Co are acting as co-managers.
Published by Globes [online], Israel business news - www.globes.co.il - on March 8, 2006
Dubi
Saifun Semiconductors Announces a Special Meeting of its Shareholders
Wednesday March 1, 4:02 pm ET
NETANYA, Israel, March 1 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (NASDAQ: SFUN - News; the "Company"), a leading provider of intellectual property solutions for the non-volatile memory (NVM) market, today announced that a Special Meeting (the "Special Meeting") of its shareholders will be held on Wednesday, March 22, 2006, at 16:00 pm Israel time, at the offices of the Company at 45 Hamelacha St., Netanya, Israel. The Special Meeting is being called for the following purposes:
(1) to ratify the appointment of Mr. George Hervey and elect Ms. Ida Keidar-Malits as Outside Directors of the Company in accordance with the requirements of the Israeli Companies Law;
(2) to approve the compensation of the Outside Directors;
(3) to authorize Dr. Boaz Eitan, the Company's Chief Executive Officer, to serve concurrently as Chairman of the Board of Directors of the Company;
(4) in accordance with the Israeli Companies Law, to approve the inclusion in a proposed offering of the Company's shares (the "Offering") of ordinary shares held by the majority of the members of the Company's Board of Directors and their affiliates, subject to the terms of the Company's registration rights agreement where applicable;
(5) in accordance with the Israeli Companies Law, to approve the inclusion in the Offering of ordinary shares held by the Company's controlling shareholder, Dr. Boaz Eitan or his affiliates, subject to the terms of the Company's registration rights agreement where applicable; and
(6) to act upon such other matters as may properly come before the meeting or any adjournment or adjournments thereof.
After the Company's shareholders have voted on proposals (1) through (3) above, and provided that the shareholders approved proposal (1) above, the Special Meeting will be adjourned to enable the Company's Audit Committee and Board of Directors to convene and consider the adoption of the resolutions approving the inclusion in the Offering of ordinary shares of the Company held by the persons described in proposals (4) and/or (5) above. To the extent that the Audit Committee and Board of Directors adopt resolution (4) and/or resolution (5), the Special Meeting will reconvene at 19:00 pm Israel time to vote to approve such adopted resolution(s).
In each case, the affirmative vote of the holders of a majority of the voting power represented at the meeting in person or by proxy, and voting thereon is necessary for the approval of each proposal. Furthermore, certain of the proposals are also subject to the following additional voting requirements:
Proposal 1 (election of Outside Directors):
- the majority of shares voted at the meeting in favor of the proposal (not including abstentions), includes at least one-third of the shares held by Non-Controlling Shareholders that are voted at the meeting (the "Non-Controlling Shares"); or
- the total number of Non-Controlling Shares voted against the proposal does not exceed one percent of the aggregate voting rights in the Company.
Proposal 3 (ratification of concurrent service of Chief Executive Officer as Chairman of the Board):
- the majority of shares voted at the meeting in favor of the proposal (not including abstentions), includes at least two-thirds of the shares of Non-Controlling Shareholders present the meeting (the "Non-Controlling Shares"); or
- the total number of Non-Controlling Shares voted against such Proposal does not exceed one percent of the aggregate voting rights in the Company.
Proposal 5 (approval of public offering which includes options and/or shares beneficially held by the Company's Controlling Shareholder):
- the majority of shares voted at the meeting in favor of the proposal (not including abstentions), includes at least one-third of the shares held by Shareholders who do not have personal interest in the approval of the transaction (the "Non-Interested Shares"); or
- the total number of Non-Interested Shares voted against the proposal does not exceed one percent of the aggregate voting rights in the company.
A proxy statement describing the various matters to be voted upon at the meeting along with a proxy card enabling the shareholders to indicate their vote on each matter will be mailed on or about March 8, 2006, to all shareholders entitled to vote at the Special Meeting. Only shareholders of record at the close of business on March 3, 2006 are entitled to notice of, and to vote at, the meeting, or at any adjournment or postponement thereof.
About Saifun Semiconductors Ltd.
Saifun is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company's innovative Saifun NROM® technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. The companies currently licensing Saifun NROM technology are Infineon Technologies, Macronix International, Matsushita, SMIC, Sony Corporation, Spansion, and Tower Semiconductors.
Saifun Semiconductors Contact: Investor Relations Contact:
Marsha Shalvi Jeff Corbin/Lee Roth
Investor Relations Director KCSA Worldwide
+972-9-892-8450 +1-212-896-1214/+1-212-896-1209
marshas@saifun.com jcorbin@kcsa.com/lroth@kcsa.com
http://biz.yahoo.com/prnews/060301/ukw013.html?.v=45
Dubi
>>Aben is also full of praise for Boaz Eitan, founder and CEO of Saifun Technologies , a Gemini portfolio company which made waves during its IPO at the end of last year and whose market cap is now approaching the $1 billion mark. “Boaz is one of Israel’s outstanding entrepreneurs. The whole story was amazing. Along comes an entrepreneur and sells you a dream about an unproven technology. You trust the man’s integrity and background but it was still a big risk. Saifun is how an Israeli company should be and I hope there will be many more. All we want is to invest, make money, create jobs, and inject a bit of Zionism in the process.” >>
(#msg-9754152)
Dubi
Saifun reports 160% revenue growth to $78.5 million for 2005
15.2.06 | 13:36 By Omri Cohen
Saifun Semiconductors (Nasdaq:SFUN) today reported nearly 160% revenue growth for 2005 compared with the year before, to $78.5 million. Its net for the year reached $44.5 million, or 36 per fully diluted share, while in the previous year it had lost $37.9 million.
Also, Saifun formally announced that shareholders will be selling some stock in a secondary offering to the public.
Saifun specializes in developing intellectual property solutions for the nonvolatile memory market (flash). It makes a living by selling licenses to its technology to flash chip makers, in multi-annual contracts.
For the fourth quarter 2005 the company reported revenues of $16.7 million, down 7% from the previous quarter but up 77% from the parallel quarter of 2004.
The company, run by Dr. Boaz Eitan, reported fourth-quarter net profit of $8.6 million, or 15 cents per share, down 20% from the $10.8 million netted in the third quarter. Analysts covering Saifun had expected higher earnings per share, of 23 cents.
In the last quarter of 2004, Saifun had lost $24.4 million, but that had been due in no small part to a capital loss on selling its shares in a joint venture to Infineon.
Saifun's proprietary NROM technology doubled the number of bits that could be stored in each memory cell, enabling manufacturers to double the storage capacity of their memory devices. That technology dates from the late 1990s. Two months ago Saifun revealed a new technology, Quad NROM, which enables chipmakers to store four bits in each unit instead of two, and to lower their production costs. The flash chips are widely used in mobile electronic devices from smart phones to cameras to mobile memories (such as DiskOnKey) and MP3 players.
http://www.haaretz.com/hasen/spages/683261.html
Dubi
Saifun Q4 revenue up 77%
The non-volatile memory solutions company has announced that it plans a secondary share offering. The plan was first reported last week in "Globes".
Globes correspondent 15 Feb 06 12:44
Non-volatile memory solutions company Saifun Semiconductors Ltd. (Nasdaq:SFUN) has reported a net profit of $8.6 million on revenue of $16.7 million for the fourth quarter of 2005. This compares with a net loss of $24.4 million on revenue of $9.4 million in the fourth quarter of 2004. Quarterly revenue rose 77%.
The company has also announced that it intends to file a registration statement with the US Securities and Exchange Commssion for an offering of its ordinary shares by certain shareholders in an underwritten secondary public offering. "Globes" reported a week ago that Saifun planned a $300 million secondary offering that would include an offer for sale by shareholders. Saifun's announcement of today does not mention the amount of the offering.
Earnings per share in the fourth quarter of 2005 were $0.16 per basic share and $0.15 per diluted share, compared with a loss per share of $1.44 in the fourth quarter of 2004.
Licensing revenue was $13.0 million (including $374,000 of non-cash license revenue), compared with $7.6 million in the fourth quarter of 2004, representing an increase of 70%.
Service revenue was $3.7 million, compared with $1.8 million in the fourth quarter of 2004, representing an increase of 104%.
The net profit for the fourth quarter of 2005 includes $1.8 million of stock-based compensation expense, compared with $177,000 in the fourth quarter of 2004.
For 2005 as a whole, Saifun reports revenue of $78.6 million (including $19.2 million of non-cash license revenue), compared with $30.6 million in 2004, representing an increase of 157%.
Net profit for 2005 was $44.5 million (including a loss of $5.3 million from discontinued operations), or $0.17 per basic and $0.16 per diluted share. This compares with a net loss of $37.9 million (including a loss of $7.2 million from discontinued operations), or $2.24 per basic and diluted share in 2004.
Net profit for 2005 includes $4.3 million of stock-based compensation expense, compared with $0.6 million in 2004.
Saifun president Kobi Rozengarten said, "We are very pleased with our results for 2005, which reflect record revenues and net profits. During the fourth quarter and throughout 2005, we saw continued growth in our core business. We strengthened relationships with our existing licensees and welcomed Semiconductor Manufacturing International Corporation (SMIC), one of the top foundries in the world, which adopted our NROM technology as part of its NVM strategy.
"In the latter part of 2005, we launched our next generation Quad NROM, which we believe is the only technology that enables the storage of four bits of information in a single cell. Quad NROM is particularly suitable for data flash (NAND) applications and we are currently working on Quad NROM projects with four of our licensees."
Saifun shares closed at $29.71 yesterday, giving the company a market cap of $853 million. The company's IPO, three months ago, was at a share price of $23.50.
Published by Globes [online], Israel business news - www.globes.co.il - on February 15, 2006
Dubi
Israel's Saifun Semi swings to Q4 net profit
Wed Feb 15, 2006 5:25 AM ET
JERUSALEM, Feb 15 (Reuters) - Israeli computer memory chip maker Saifun Semiconductors Ltd. (SFUN.O: Quote, Profile, Research) reported the following results on Wednesday:
(in thousands of dollars except EPS)
Q4 05 Q4 04 12-MTH 05 12-MTH 04 Revenue 16,690 9,443 78,601 30,566 Operating profit 7,257 3,510 48,021 11,661 Net Profit (loss) 8,615 (24,437) 44,507 (37,904) Earnings (loss) per Share -- diluted $0.15 ($1.44) $0.16 ($2.24)
NOTE: On a pro-forma basis, Saifun posted earnings per share of 30 cents diluted in the fourth quarter
http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060215...
Dubi
Saifun Semiconductors Reports Fourth Quarter and Year-End 2005 Results
Wednesday February 15, 5:02 am ET
NETANYA, Israel, February 15 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (NASDAQ: SFUN - News), a provider of intellectual property solutions for the non-volatile memory (NVM) market, today announced financial results for the fourth quarter and twelve months ended December 31, 2005.
Financial Highlights: Fourth Quarter 2005 compared to Fourth Quarter 2004
- Revenues were $16.7 million (including $374,000 of non-cash license revenues recognized in connection with the exit in December 2004 from the company's former joint venture with Infineon Technologies), compared to $9.4 million, an increase of 77%.
- Licensing revenues were $13.0 million (including $374,000 of non-cash license revenues), compared to $7.6 million, an increase of 70%.
- Service revenues were $3.7 million, compared to $1.8 million, an increase of 104%.
- Cost of service revenues was $3.8 million, of which $746,000 represented services performed for licensees pursuant to which no revenues were recognized in this quarter.
- Operating income was $7.3 million, compared to $3.5 million, an increase of 107%.
- Net income was $8.6 million (including income of $0.2 million from discontinued operations), or $0.16 per basic and $0.15 per diluted share, compared to a net loss of $24.4 million, or $(1.44) per basic and diluted share.
- Net income included $1.8 million of stock-based compensation expense compared to $177,000.
Financial Highlights: Fiscal Year 2005 compared to Fiscal Year 2004
- Revenues were $78.6 million (including $19.2 million of non-cash license revenues) compared to $30.6 million, an increase of 157%.
- Licensing revenues were $65.8 million (including $19.2 million of non-cash license revenues), compared to $22.6 million, an increase of 191%.
- Service revenues were $12.8 million, compared to $7.9, an increase of 62%.
- Cost of service revenues was $12.0 million, of which $1.4 million represented services performed for licensees pursuant to which no revenues were recognized in this year.
- Operating income for the period was $48.0 million, compared to $11.7 million, an increase of 312%.
- Net income was $44.5 million (including a loss of $5.3 million from discontinued operations), or $0.17 per basic and $0.16 per diluted share, compared to net loss of $37.9 million (including a loss of $7.2 million from discontinued operations), or $(2.24) per basic and diluted share.
- Net income included $4.3 million of stock-based compensation expense compared to $0.6 million.
Commenting on the results, Kobi Rozengarten, President of Saifun Semiconductors said, "We are very pleased with our results for 2005, which reflect record revenues and net profits. During the fourth quarter and throughout 2005, we saw continued growth in our core business. We strengthened relationships with our existing licensees and welcomed Semiconductor Manufacturing International Corporation (SMIC), one of the top foundries in the world, which adopted our NROM technology as part of its NVM strategy.
"In the latter part of 2005, we launched our next generation Quad NROM, which we believe is the only technology that enables the storage of four bits of information in a single cell. Quad NROM is particularly suitable for data flash (NAND) applications and we are currently working on Quad NROM projects with four of our licensees."
About Saifun Semiconductors Ltd.
Saifun is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company's innovative Saifun NROM® technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. The companies currently licensing Saifun NROM technology are Infineon Technologies, Macronix International, Matsushita, SMIC, Sony Corporation, Spansion, and Tower Semiconductors.
http://biz.yahoo.com/prnews/060215/ukw006.html?.v=48
Dubi
Saifun Semiconductors Plans Public Secondary Offering
Wednesday February 15, 4:47 am ET
NETANYA, Israel, February 15 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (NASDAQ: SFUN - News) announced today that it proposes to file with the Securities and Exchange Commission a registration statement for an offering of its ordinary shares by certain shareholders in an underwritten secondary public offering.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful. This announcement is being issued pursuant to and in accordance with Rule 135 under the Securities Act of 1933.
http://biz.yahoo.com/prnews/060215/ukw003.html?.v=51
Dubi
Saifun Extends its Licensing Agreement with Japanese Licensee
Feb 13, 2006
NETANYA, Israel, February 13, 2006 /PRNewswire via COMTEX/ -- Saifun Semiconductors Ltd., a provider of intellectual property solutions for the non-volatile memory (NVM) market, today announced that the company has extended its licensing agreement with one of its Japanese licensees, a major consumer electronics manufacturer, to provide Saifun NROM(R) technology. Under terms of the agreement, the Japanese company will license Saifun's NROM technology for use with its SiP (System in Package) in addition to embedded NVM products.
"We believe that extending our agreement with our Japanese licensee is another confirmation of our technology's added value to our licensees and our strong position as a supplier of advanced high-density flash and embedded flash technology," said Kobi Rozengarten, President of Saifun Semiconductors. "We are pleased that through this agreement we will continue to support our Japanese licensee in their development activities."
About Saifun Semiconductors Ltd.
Saifun is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company's innovative Saifun NROM(R) technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. Among the companies licensing Saifun NROM are Infineon Technologies, Macronix International, MEI (Panasonic), Sony Corporation, SMIC, Spansion, and Tower Semiconductors. For more information please check out our website: www.saifun.com
Dubi
Three months after IPO, Saifun preparing for secondary offering
08.2.06 | 09:15 By Ami Ginsburg
Three months after floating on Wall Street, Saifun Technologies (Nasdaq: SFUN) is gearing up for a secondary issue. The memory chips maker has not yet decided how much to raise but market sources think it has its eyes on around $300 million.
Mainly, existing shareholders would be cashing out. Saifun president Kobi Rozengarten, who is presently in San Francisco, refused to comment for this report.
In November 2005, Saifun raised $135 million through selling 5.75 million shares for $23.50 each. Lehman Brothers led the offering with the aid of Deutsche Bank and CIBC.
The offering was oversubscribed and on its first day of trade, Saifun stock reached $36. It has since pulled back a little, to $33.40, representing a company value of $960 million.
The reason for the secondary offering is mainly to avoid a glut. A large number of shares gets released from lockup in May 2006, which would otherwise create great pressure on the share price.
Insofar as could be ascertained, the offering would take place in April, right before the release, but it might be earlier, depending on developments in the U.S. capital markets.
The biggest Saifun shareholder is its founder, Boaz Eitan (40%). Next is Clal Industries and Investments (TASE: CII) with a 12% interest and the Concord and Gemini venture capital funds.
Some of the shareholders, including the venture capital funds and certain company officers, hold stock options exercisable at low prices.
Gemini has been invested in Saifun for eight years but both funds feel urgency to cash out and move on to focus on sequel funds.
http://www.haaretz.com/hasen/spages/680359.html
Dubi
Saifun to raise further $300m
The flash memory technology company held its IPO three months ago. The current offering will include an offer for sale by shareholders.
Gitit Pincas 7 Feb 06 17:39
After years of being on the verge of taking the plunge, Saifun Semiconductors Ltd. (Nasdaq: SFUN) finally held its Wall Street IPO three months ago. All those years of delays, postponements, and replacement of underwriters paid off. The offering was a great success; the company raised $135.1 million gross, at $23.50 per share.
Since then, Saifun’s share has climbed 40%, and the company is now planning to strike in full force while the iron is hot. Sources inform "Globes" that Saifun plans to exploit the positive momentum through a secondary issue on Nasdaq, starting this May.
Capital market sources said that the issue would include an offer for sale by shareholders, headed by funds and financial investors that had invested in Saifun. The final date and size of the issue have not yet been settled, but estimates are that the company will raise $300 million or more. Saifun declined to respond to the report.
Founded by chairman and CEO Boaz Eitan, Saifun is expected to embark on its secondary issue with the same lineup of underwriters as in its IPO: Lehman Brothers, Deutsche Bank, CIBC, William Blair & Co., and Raymond James.
Saifun has developed technology called NROM, which enables flash chip manufacturers to double the memory capacity of a chip of the same physical size.
The secondary issue is no surprise, since parties at interest in the company have made millions of dollars on paper, but did not take advantage of the rise in the share or the IPO to sell shares. It is only natural for the funds holding Saifun shares to want to complete an exit (probably only a partial one), and get some cash.
Saifun’s current shareholders include Eitan (39.1%), IDB Holding Corp. (TASE: IDBH) (9.6%), Gemini Israel Funds (6.9%), Concord Ventures (5.7%), Argos Capital Management (controlled by Ephraim (Efi) Gildor -- 5.5% acquired from Infineon Technologies (NYSE, FSE: IFX), and Saifun president Kobi Rozengarten (1.8%). Capital market sources noted that Eitan himself is also expected to sell “a nominal quantity of” shares in the issue in order to avoid remaining the only large shareholder in the company, while the funds’ holdings are decreasing.
Published by Globes [online] - www.globes.co.il - on February 7, 2006
http://www.globes.co.il/serveen/globes/docview.asp?did=1000059084&fid=942
Dubi
Saifun Semiconductors' Fourth Quarter 2005 Earnings Release and Conference Call Scheduled for February 15, 2006
Wednesday February 1, 7:46 am ET
NETANYA, Israel, February 1 /PRNewswire-FirstCall/ -- Saifun Semiconductors Ltd. (Nasdaq: SFUN - News) announced that it will release its fourth quarter and year-end 2005 financial results on Wednesday, February 15, 2006, during pre-market hours.
Following the earnings announcement, Saifun will host a conference call at 8:30 a.m. EST. The call will be available live on the Internet at www.saifun.com. Following the call, the webcast will be archived for a period of 90 days.
A replay of the call will be available beginning at approximately 10:30 a.m. EST, February 15, 2006, until February 22, 2006 at 11:59 p.m. To listen to the replay, please call +1-(973)-341-3080. To access the replay, users will need to enter the following code: 6989033.
About Saifun Semiconductors Ltd.
Saifun is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company's innovative Saifun NROM® technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. Among the companies licensing Saifun NROM are Infineon Technologies, Macronix International, Sony Corporation, Spansion, and Tower Semiconductors. For more information please check out our website: www.saifun.com.
http://biz.yahoo.com/prnews/060201/ukw007.html?.v=50
Dubi
Deutsche Bank investment report
I think this is a pretty good and balanced report on Flash and Saifun. Good overview if you don't know anything about either. The file is about 1.2 meg so it takes a minute to load.
http://us.f2.yahoofs.com/bc/42ecf953_16a31/bc/reports/Flash+report.pdf?BCxoA4DBQAFAqb1j
Psagot Ofek rates Saifun “Buy”
Saifun’s challenge is to repeat its success in NAND technology with NROM technology.
Gil Shlomo 30 Jan 06 16:12
Psagot Ofek Investment House Ltd. gives Saifun Semiconductors Ltd. (Nasdaq:SFUN) a “Buy” recommendation, with a target price of $44, 29.4% above the share’s current price.
Saifun has developed NROM technology for flash memory processors, one of the main advantages of which is to double the storage capacity of any given processor. The company’s unique business model for selling intellectual property enables it to present an exceptional operating profit margin of over 50%.
The added value Saifun offers the world’s flash memory processor makers is cheaper product prices, a critical factor in the commodities market. Analysts therefore believe that the company will achieve annual double-digit growth rates, thanks to rising demand for flash memory processors in general, and Saifun’s technological advantages in particular.
The flash memory processor market, including all technologies (NOR, NAND, serial flash, and embedded flash) is expected to be one of the fastest growing segments of the semiconductor market, with a projected annual average growth rate of 20% in 2004-2010.
Psagot Ofek says Saifun’s challenge will be to repeat its success in the NAND sector, which is expected to have 33% annual growth, in the NROM sector, which currently has slightly more than 4% of the volatile memory processor market.
Analysts predict that Saifun will post $69.3 million in sales in 2006, with an operating profit of $54.87 million, and a net profit of $38.61 million ($1.16 per share).
Saifun has set a target of either $400 million in sales in 2010, or 20% of flash memory processors using NROM technology by this date. Psagot Ofek is more conservative than Saifun’s management, and forecasts $265 million in turnover in 2010.
http://www.globes.co.il/serveen/globes/docview.asp?did=1000056013&fid=942
Dubi
IBM, Sony, Toshiba in Alliance
(Semi O/T)
The three companies will pool their engineering resources to develop advanced chip manufacturing technologies.
January 13, 2006
IBM, Sony, and Toshiba said they’ll spend the next five years collaborating on developing chip manufacturing processes for making tiny circuitry on a semiconductor.
The announcement on Thursday also reflected the trend of rival chip and electronics companies that pool their resources in developing cutting-edge technologies. The partnership aims to research ways to pack more and smaller transistors on a silicon, the building block of a chip.
“I believe that in the future, because the cost of developing new devices and process technologies, there will be more consortia,” said Dave Cavanaugh, analyst at Semico Research.
IBM, Sony, and Toshiba have banded together to develop new technologies before. They created the celebrated Cell chip, which has nine cores on a piece of silicon and will power Sony’s PlayStation 3. The project cost about $400 million and involved engineers on different continents (see Q&A: IBM's Peter Hofstee).
Now the three companies decide to tackle a different and tough assignment: how to make complex chips with miniscule circuits without running into problems with leaking electrical current or other flaws. The triad plans to focus on developing the 32 nm technology for producing chips.
Accelerated Cycle
“This joint development project will help accelerate the cycle from fundamental research to commercialization based on detailed feasibility studies of potential technologies, device structures, innovative materials, and unique processing tools,” said Kenshi Manabe, president of Sony’s semiconductor unit.
Right now the most advanced manufacturing technology in use is the 65 nm process. Intel has led the pack in using the 65 nm process and is now making its Core Duo processors for computers.
Each nanometer is a billionth of a meter. The gate of each transistor, where the current flows through, is so small that 100 of those gates could form the diameter of a human red blood cell.
The technical challenge of creating such small circuitry is matched by the high cost of developing and manufacturing chips. Intel, for example, is building a $3.5-billion factory in Israel that will use the 45 nm process.
But more and more, companies find savings in forming alliances for research and development. For example, Sony has worked with Samsung on developing flat-panel displays.
Toshiba, Hitachi, and Renesas Technology recently announced a joint, manufacturing venture (see 3 Japan Firms Form Chip Pact).
Freescale Semiconductor, STMicroelectronics, and Royal Philips Electronics formed a partnership during 2002 for developing manufacturing technologies. IBM also is working with Advanced Micro Devices on doing similar research.
http://www.redherring.com/Article.aspx?a=15303&hed=IBM,%20Sony,%20Toshiba%20in%20Alliance
Dubi
Lol, thanks EB33,
Regards,
Dubi
Way to go!
Analysts out, Midas in!!
EB33
Analysts opinions-ha!!!
12/22/2005 (08:40 ET) SFUN: Raymond James Starts @ Outperform; Sets Tgt @ $35 - Knobias
12/20/2005 (09:01 ET) SFUN: CIBC Starts @ Sector Outperform; Sets Tgt @ $35; Analyst Notes - Knobias
12/20/2005 (07:46 ET) SFUN: Deutsche Bank Starts @ Hold; Sets Tgt @ $26; Analyst Notes - Knobias
12/19/2005 (15:41 ET) William Blair & Company Initiates Coverage Of Saifun Semiconductors Ltd. With Outperform Rating - PR Newswire
12/19/2005 (09:00 ET) StreetInsider Alert for SFUN - Street Insider
12/19/2005 (08:43 ET) SFUN: Lehman Starts @ Equal-weight; Sets Tgt @ $33; Analyst Notes - Knobias
http://www.knobias.com/individual/public/quote.htm?aff=IHUB&ticker=SFUN
Dubi
SMIC extends NROM technology license deal with Saifun
Wed Jan 4, 2006 05:12 AM ET
(The following was issued by Israel's Saifun (SFUN.O: Quote, Profile, Research) and Hong Kong's SMIC (0981.HK: Quote, Profile, Research) (SMI.N: Quote, Profile, Research) ):
Jan 4 - Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI and HKSE: 981), one of the leading semiconductor foundries in the world and China, and SAIFUN Semiconductors Ltd. (Nasdaq: SFUN), a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market, today announced that SMIC will use the SAIFUN NROM(R) technology to develop and manufacture Flash memory cards.
SAIFUN NROM technology enables storage of up to four bit-per-cell or more than double the storage capacity of a basic memory cell, and has a cell architecture that requires fewer manufacturing steps, thereby reducing manufacturing costs.
"SMIC recognizes the Flash memory card market as an important driver towards our success in the future," said Mr. Marco Mora, Chief Operating Officer of SMIC. "Now in our second agreement with Saifun, we are excited to introduce high-density memory cards with Saifun's advanced memory technology.
"We will soon look into key distribution channels that align with our core strengths. SMIC truly believes with Saifun's leading memory technology and our manufacturing strength, SMIC will be able to bring to market an extremely competitive product."
"We are pleased that SMIC has extended our partnership into the memory card market," said Mr. Kobi Rozengarten, President of Saifun Semiconductors. "Since our first license agreement this past June, both companies have been working closely together to develop leading-edge Flash memory products for the data market based on the NROM two-bit and four-bit technologies.
"With the growing demand for high density cards, the combination of SMIC's advanced manufacturing expertise and Saifun's innovative NROM technology presents another significant growth opportunity for both companies."
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh33569_2006-01-04_10-12-40_l04...
Dubi
SMIC Extends NROM Technology License Agreement With SAIFUN
World-Leading Semiconductor Foundry to Produce Flash Memory Cards Based on Saifun NROM(R) Technology
{Probable cause for yesterdays positive action}
1/4/2006 4:15:58 AM
SHANGHAI, China and NETANYA, Israel, January 4, 2006 /PRNewswire-FirstCall via COMTEX/ -- Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI and HKSE: 981), one of the leading semiconductor foundries in the world and China, and SAIFUN Semiconductors Ltd. (SFUN), a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market, today announced that SMIC will use the SAIFUN NROM(R) technology to develop and manufacture Flash memory cards.
SAIFUN NROM technology enables storage of up to four bit-per-cell or more than double the storage capacity of a basic memory cell, and has a cell architecture that requires fewer manufacturing steps, thereby reducing manufacturing costs.
"SMIC recognizes the Flash memory card market as an important driver towards our success in the future," said Mr. Marco Mora, Chief Operating Officer of SMIC. "Now in our second agreement with Saifun, we are excited to introduce high-density memory cards with Saifun's advanced memory technology. We will soon look into key distribution channels that align with our core strengths. SMIC truly believes with Saifun's leading memory technology and our manufacturing strength, SMIC will be able to bring to market an extremely competitive product."
"We are pleased that SMIC has extended our partnership into the memory card market," said Mr. Kobi Rozengarten, President of Saifun Semiconductors. "Since our first license agreement this past June, both companies have been working closely together to develop leading-edge Flash memory products for the data market based on the NROM two-bit and four-bit technologies. With the growing demand for high density cards, the combination of SMIC's advanced manufacturing expertise and Saifun's innovative NROM technology presents another significant growth opportunity for both companies."
About SMIC
Semiconductor Manufacturing International Corporation, (SMI) is one of the leading semiconductor foundries in the world, providing integrated circuit (IC) manufacturing at 0.35um to 90nm and finer line technologies to customers worldwide. Established in 2000, SMIC has four 8-inch wafer fabrication facilities in volume production in Shanghai and Tianjin. In the first quarter of 2005, SMIC commenced commercial production at its 12-inch wafer fabrication facility in Beijing. SMIC also maintains customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. As part of its dedication towards providing high-quality services, SMIC strives to comply with or exceed international standards and has achieved ISO9001, ISO/TS16949, OHSAS18001, TL9000, BS7799 and ISO14001 certifications. For additional information, please visit http://www.smics.com.
About Saifun Semiconductors Ltd.
SAIFUN Semiconductors Ltd. (SFUN) is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company's innovative Saifun NROM(R) technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. Among the companies licensing Saifun NROM are Infineon Technologies, Macronix International, Matsushita Electric Industrial, SMIC, Sony Corporation, Spansion, and Tower Semiconductors.
Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives and expectations for future operations and are based upon management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in the Company's final prospectus filed on November 9, 2005 with the U.S. Securities and Exchange Commission in connection with the company's initial public offering. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE ;
Semiconductor Manufacturing International Corporation & SAIFUN Semiconductors Ltd
Contact: Marsha Shalvi, +972-989-28450, +972-544-942180, marshas@saifun.com Samantha
Sullivan, +1-617-488-0988 ext. 8, Samantha.Sullivan@theinkstudio.com America &
Europe: Reiko Chang, Tel: +86-(21)-5080-2000 ext 10544, E-mail: PR@smics.com, Asia
Pacific & other regions: Angela Miao, Tel: +86-(21)-5080-2000 ext 10088, Fax:
+86-(21)-5080-2868, E-mail: PR@smics.com
Dubi
Aiming,
You know my opinion, however i will add my input, an
important detail you are perhaps not aware of.
As you know a lot of stock sales were executed due to
tax considerations.
In Israel, unlike the US, you can sell a stock for a
loss (in order to offset capital gain taxes) and rebuy
a moment later (as opposed to the 30 day period required
in the US.)
What i think is happening is that a lot of Israelis who
sold are now rebuying.
The price will settle at the 30+, till its further surge.
JMHO, and as you noticed, short term guessing is very tricky.
Regards,
Dubi
I'm tempted to sell my remaining SFUN today, it's close to my break even point and there are other opportunities I'd like to pursue.
SFUN looks like a great bet for future appreciation, but perhaps not in the near term.
Does anyone see SFUN hitting $33 or greater soon, or is it stuck in a $27 to $30 range for a while?... Aiming4.
>>Pointing to a recent success, he cited Saifun Semiconductors, which makes flash memory systems used in digital cameras, mobile phones and other consumer electronics. In 1998, Mr. Sela's firm began investing in Saifun in its early stages. Last month, the company was listed on Nasdaq and raised $121 million in its initial public offering.<<
(#msg-9009911)
Dubi
Another new company on the CIBC list of recommended stocks is Saifun Semiconductors (Nasdaq: SFUN), which went public two and a half months ago.
http://www.haaretz.com/hasen/spages/661260.html
Dubi
M-Systems sells Saifun stake
The sale was reportedly due to accounting calculations, not because of a lack of confidence in the company.
Ofer Levi and Gitit Pincas 20 Dec 05 19:00
Sources inform ''Globes'' that M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH) sold its 2% stake in Saifun Semiconductors Ltd. (Nasdaq:SFUN) a few days ago for $15 million in an off-floor transaction. The buyer is unknown at this time. M-Systems no longer has a stake in Saifun.
The Kfar Saba-based supplier of flash memory processors posted a capital gain estimated at $5 million on the sale. M-Systems bought its holding in Saifun in October 2000, and recorded the holding at a value of $10 million. Saifun CEO Boaz Eitan was a member of M-Systems’ board until December 2002.
Saifun develops technology to double processors’ memory capacity. Does M-Systems no longer believe in Saifun? Certainly not. The sale was reportedly due to accounting calculations, not because of a lack of confidence in the company. The investment in Saifun was not financial; M-Systems booked it as a fixed investment. Now that Saifun has gone public, M-Systems would have had to calculate the value of the holding every quarter, and compare the figure with the value in its books, which could affect its profit and loss statement.
M-Systems CFO Ronit Maor recently said, “Saifun has interesting technology that we’ll be pleased to use in the future.” The sale of the holding simply seems to be the result of a wish to avoid an accounting headache.
Published by Globes [online], Israel business news - www.globes.co.il - on December 20, 2005
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000041837
Dubi
William Blair rates Saifun "Outperform"
Deutsche Bank: Saifun's technology still faces key challenges.
Globes corespondent 20 Dec 05 17:33
Analysts are continuing to test the water at Nasdaq newcomer Saifun Semiconductors Ltd. (Nasdaq:SFUN). Today, William Blair and Deutsche Bank join Lehman Brothers analysts Time Luke and Nadeed Janmohamed, who gave Saifun an "Equal weight" rating.
William Blair analysts Jeff Rosenberg, Jim Karlis, and Michael Bartlett rate Saifun "Outperform", while for Deutsche Bank, Pranay Laharia and Ben Lynch go for a "Hold" rating. William Blair's earnings estimates are $1.16 for 2005 and $1.04 for 2006. Deutsche Bank has $0.98 for 2005 and $1.61 for 2006.
"Saifun’s nitride read-only memory (NROM) technology, which offers a proprietary method to store two bits of data in a memory cell, has the potential to significantly alter the competitive landscape of the nonvolatile memory (mostly flash) semiconductor market. Management expects to leverage NROM’s advantages to penetrate 20%of the market by 2009," William Blair's report says
"Flash memory is the fastest-growing major segment of semiconductors. Already an $18 billion market, flash is expected to grow at least 25% per year and therefore, more than double by 2009. Saifun derives all its revenue from this market.
"The company, in our opinion, has a very attractive financial model. We forecast gross and operating margins of at least 75% and 45% respectively in 2006. Unlike chip or product manufacturers that are more subject to the cyclical forces in the flash memory market, the vast majority of Saifun’s earnings derive from license and royalty payments.
"We expect 2006 to be an important transition year for the company. The flash memory market has two major segments: NOR and NAND. Saifun initially achieved greater penetration of the technically more complex, but slower-growing, NOR segment. Efforts to replicate that success in the NAND market, which we believe largely hinges on the successful introduction of the company’s 4-bit per cell technology, are a key priority for 2006.
"Separately, a portion of the company’s revenue base will transition during the year from license payments to royalties. Our estimates reflect some negative effects from the timing of this shift, which we expect to temporarily pressure margins and dampen sales growth," the William Blair report concludes.
The Deutsche Bank report is more cautious about Saifun's technology, saying, "While the upside potential of NROM is high, we believe that the technology still faces key challenges, and that the current valuation reflects a balanced risk-reward."
Laharia and Lynch set a $26 12-month price target for Saifun, which compares with a current share price of $28 that gives the company a $775 million market cap.
Meanwhile, CIBC World Markets has com out with a "Sector Outperform" rating for Saifun.
Published by Globes [online], Israel business news - www.globes.co.il - on December 20, 2005
http://www.globes.co.il/serveen/globes/docview.asp?did=1000041825&fid=942
Dubi
And more,
http://finance.yahoo.com/q/ud?s=SFUN
UPGRADES & DOWNGRADES HISTORY
Date Research Firm Action From To
20-Dec-05 CIBC Wrld Mkts Initiated Sector Outperform
20-Dec-05 Deutsche Securities Initiated Hold
19-Dec-05 Lehman Brothers Initiated Equal-weight
Dubi
William Blair & Company Initiates Coverage Of Saifun Semiconductors Ltd. With Outperform Rating
via COMTEX
December 19, 2005
CHICAGO, Dec 19, 2005 /PRNewswire via COMTEX/ --
William Blair & Company today announced that it initiated research coverage of Saifun Semiconductors Ltd. (Nasdaq: SFUN) ($28.34), whose nitride read only memory (NROM) technology has the potential to significantly alter the competitive landscape of the non-volatile memory semiconductor market, with an Outperform rating and company profile of Aggressive Growth.
Analyst Jeff Rosenberg estimated that the company would earn $1.04 per share in fiscal 2006 and $1.37 per share in fiscal 2007.
"The company, in our opinion, has a very attractive financial model," Rosenberg said. "We forecast gross and operating margins of at least 75% and 45%, respectively, in 2006. Unlike chip or product manufacturers that are more subject to the cyclical forces in the flash memory market, the vast majority of Saifun's earnings derive from license and royalty payments."
"We expect 2006 to be an important transition year for the company," he added. "The flash memory market has two major segments, known as NOR and NAND. Saifun initially achieved greater penetration of the technically more complex, but slower growing, NOR segment. Efforts to replicate that success in the NAND market, which we believe largely hinges on the successful introduction of the company's 4-bit per cell technology, are a key priority for 2006."
William Blair & Company, L.L.C. ( http://www.williamblair.com ) is a Chicago-based investment firm, founded in 1935, offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients.
William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.
William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months.
William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.
For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=954&depID=4 .
Additional information is available upon request.
William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252.
SOURCE William Blair & Company, L.L.C.
Dubi
Lehman starts Saifun with Equal Weight rating
19.12.05 | 14:28 By TheMarker
Lehman Brothers today to cover Saifun Technologies with a lukewarm Equal Weight investment recommendation. It has little but praise for the company but notes its high multiple, and also points at the risks that include a high customer concentration: Macronix alone was responsible for 37% of turnover this year, and Infineon for 28%.
Analysts Tim Luke and Nadeem Janmohamed set a 12-month price target of $33 for the company, an innovative intellectual property vendor targeting flash memory with its patented NROM (nitride-read-only memory) technology. It has 55 U.S. patents on the technology, Lehman Brothers points out.
Saifun makes its living from licensing its technology. They profess to be impressed by the company's early traction and expect growth in the coming two years to be driven by penetration of its technology with its existing seven licensees.
The company did achieve 89% revenue growth this year compared with 2004, which is nice, and believe Saifun can add one or two more licensees by the end of 2007. If not more.
Its business model is highly profitable, and also encourages the adoption of NROM in the market for flash memories, which are compact little high-density memory devices for the likes of digital cameras and smart phones. Saifun's technology addresses a $21 billion market (that's the estimate financing round 2006), the analysts say, and it's working on upgrading its technological offering by doubling capacity.
For the year 2006, Luke and Janmohamed project that Saifun could increase revenues by 17% to $57.7 million, a figure that could increase if the Israeli company adds licensees.
For 2005 they predict earnings of $1.20 production share, and $1 in 2006 as share count increases. For 2007 they project $1.38 in earnings.
http://www.haaretz.com/hasen/spages/659791.html
Dubi
My opinion is also based on the thought that 2006 will be an excellent year for Orbotech, as part of a good year forecast for all semiconductor companies.
Published by Globes [online] - www.globes.co.il - on December 15, 2005
http://www.globes.co.il/serveEN/globes/nodeView.asp?fid=1052
Dubi
Ok,
I'm a little bit confused. Spansion's Mirrorbit "Technology" is actually a product derived from NROM. Right? I still think it says something about the strength of Saifun's NROM technology that a company going public lists NROM as a potential strength because they license it, and a weakness because other companies license and may be better at using it. To me that's a little bit funny.
Zaphod
That is not what is stated in the SEC filing. Their product is based on NROM license. They don't own the IP internally. They indicated others could use NROM also and develop competitive products.
http://www.sec.gov/Archives/edgar/data/1322705/000119312505075620/ds1.htm#toc71380_3
search for NROM in S-1
Aiming,
If i have had second thoughts, they all vanished when
i read the term used (which i do not care to repeat).
If the price is to lose an insightful poster, so be it.
Regards,
Dubi
It was a complete joke. As is this site. Take care. I'm out of here
hawaiiretireo - iHub has a strict policy about no personal attacks and I think that's the way your deleted post came across.
I'm almost always willing to give the benefit of the doubt, so hopefully you were just joking around and it sounded rougher than you meant it to.
I'd like to see you stay, the more posts about SFUN the better and you dig up some good articles.
Have a great Monday... Aiming4.
Another interesting reference as outline by our friend in the previous message:
"If successfully developed and commercialized as a viable alternative to Flash memory, these technologies could pose a competitive threat to a number of Flash memory companies, including us. In addition, we and some of our competitors have licensed Flash memory technology called NROM technology from a third party. NROM technology has similar characteristics to our MirrorBit technology, which may allow these competitors to develop Flash memory technology that is competitive with MirrorBit technology. "
From the Spansion filling:
We expect that our first products incorporating QuadBit architecture will target segments of the market that value higher density, lower cost products. These products may include products integrating security functionality with high-density Flash memory on a single chip, which we intend to target to segments of the cellular handset, automotive electronics and set-top box markets. Also, we have leveraged our MirrorBit technology to expand our Flash memory offering into new areas such as serial Flash memory and MirrorBit technology-based ROM. We have announced plans to offer Serial Peripheral Interface, or SPI, products based on MirrorBit technology at densities ranging from one megabit to 64 megabits. We offer our MirrorBit ROM family in densities from 16 megabits to 512 megabits. We believe that these Flash memory innovations made possible by MirrorBit technology will enable us to expand our opportunity in the Flash memory market.
http://www.hoovers.com/free/co/secoutline.xhtml?ID=132604&ipage=3827645
That is funny! Can;t wait to see how the market reacts. THis is almost a pure downstream play to SFUN. If the market recieves it well, we are going to roll
Hawaiiretireo,
I think it is comical that one of the risks that Spansions lists is that NROM could become more accepted than their own technology!
Zaphod
SPANSION GOING PUBLIC NEXT WEEK!!!!!
READ THIER FILING FOLKS. WILL HAVE A LOT TO SAY ABOUT QUADBIT
http://www.thestreet.com/_yahoo/tech/semis/10256816.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Very technical article comparing NAND to NROM
http://ecsmeet.peerx-press.org/ms_files/ecsmeet/2005/01/03/00022769/00/22769_0_art_file_1_1104757596...
More than two 4 bit customers next year. We are golden....boys
http://www.electronicsweekly.com/Articles/2005/12/07/37109/Israelimemorystoresfourbitspertransistor....
Background info,
Gartner Says Semiconductor Industry Reaches Historic Level with Worldwide Revenue Reaching $235 Billion in 2005
Hynix Semiconductor Experienced Strongest Growth Among Top-Tier Vendors, as well as Top Position in the Gartner Relative Industry Performance Ranking
12/9/2005 8:12:01 AM
STAMFORD, Conn., Dec 09, 2005 (BUSINESS WIRE) -- Worldwide semiconductor revenue will total $235 billion in 2005, a 6.9 percent increase from 2004, according to preliminary results from Gartner, Inc. This will be the first time that the semiconductor industry has surpassed the previous record-setting year in 2000 when revenue reached $223 billion.
"Strong growth in the NAND flash market was a recurring theme in the 2005 market share rankings," said Andrew Norwood, research vice president at Gartner. "The continuing strong demand for flash card and USB flash drives in 2005, along with the successful launch of the iPod shuffle by Apple at the start of 2005 and the release later in the year of the iPod nano, will drive this device market to the highest revenue performance in 2005."
Intel remained the No. 1 vendor in 2005, as its revenue grew 14.3 percent, twice the market average (see Table 1). In the previous three years, Intel's growth rate had been below the market average. Intel's core microprocessor business performed in line with the overall company, with revenue from the desk-based CPU market showing positive growth, while mobile-based components experienced much stronger revenue growth driven by increasing shipments of mobile PCs.
Table 1
Preliminary Top 10 Worldwide Semiconductor Vendors by Revenue
Estimates (Millions of U.S. Dollars)
2005 2004 2004-
Market Market 2005
2005 2004 2005 Share 2004 Share Growth
Rank Rank Company Revenue (%) Revenue (%) (%)
----------------------------------------------------------------------
1 1 Intel 35,136 15.0 30,730 14.0 14.3
2 2 Samsung Electronics 17,850 7.6 16,276 7.4 9.7
3 3 Texas Instruments 10,450 4.4 9,678 4.4 8.0
4 7 Toshiba 9,306 4.0 8,538 3.9 9.0
5 6 STMicrolectronics 8,825 3.8 8,761 4.0 0.7
6 4 Renesas Technology 8,801 3.7 9,001 4.1 -2.2
7 5 Infineon Technologies 8,277 3.5 8,945 4.1 -7.5
8 8 NEC Electronics 5,793 2.5 6,438 2.9 -10.0
9 12 Hynix Semiconductor 5,736 2.4 4,648 2.1 23.4
10 11 AMD (incl. Spansion) 5,687 2.4 5,001 2.3 13.7
Others 119,106 50.7 111,864 50.8 6.5
Total Market 234,967 100.0 219,880 100.0 6.9
----------------------------------------------------------------------
Source: Gartner Dataquest (December 2005)
Samsung Electronics continued to gain share, as it accounted for 7.6 percent of the market. Samsung now dominates most areas of the memory market, holding the No. 1 position in DRAM, SRAM and the fast-growing NAND flash market.
Hynix Semiconductor moved into the top 10 for the first time in 2005. In the NAND flash segment, Hynix's revenue is likely to reach $1.5 billion, up from $212 million in 2004, an increase of more than 600 percent. "This success is made more satisfying for Hynix given the financial struggles the company has endured over the last few years," Mr. Norwood said.
One vendor missing from the top 10 this year is Philips Semiconductor, which held the No. 9 position in 2004. "The Dutch company was pushed out of the top 10 for only the fifth time in the last 25 years," Mr. Norwood said. The last time the company did not make the top 10 was in 2000 when it was also placed in position 11. The other years that Philips failed to make the top rankings were 1993, 1994 and 1995. "All these years have one thing in common; they were all boom years for the DRAM market, with this year being a boom year for NAND," Mr. Norwood said. "Philips has always kept away from the highly volatile memory market."
There is hope for Philips and Freescale Semiconductor, the other vendor to be pushed out of the top 10, to re-enter next year. Two existing companies in the top 10, Infineon Technologies and Advanced Micro Devices (including Spansion), plan an IPO of their memory operations in the next 12 months. In both cases, this would result in smaller vendors placed outside the top 10, allowing Freescale and Philips to reenter by default.
While market share results provide a good indication of which vendors did well or poorly during a year, it does not tell the whole story. Often, the performance of a vendor is based on the results of the overall segment growth of the device area that the vendor participates in. Gartner's relative industry performance (RIP) index measures the difference between industry-specific growth for a company and actual growth, showing which are transforming their businesses by growing share or moving into new markets and choosing their customers wisely.
Hynix achieved the best RIP ranking by outgrowing its market by 23.4 percent. "The South Korean memory vendor accomplished this by moving into the fastest-growing memory market of all time - NAND flash," Mr. Norwood said. "In 2004, Hynix had just 3 percent of the NAND flash market, but it is likely to see that share increase five-fold to approach 15 percent during 2005." Two other vendors in the wider top 25 rankings outgrow their industry-specific markets by more than 10 percent. Elpida Memory and Advanced Micro Devices (including Spansion) have gained share in their existing markets.
Not all vendors did so well, as NEC Electronics and Infineon Technologies underperformed their respective markets by more than 10 percent and were placed at the bottom of the RIP ranking of top 25 vendors. For NEC Electronics, it suffered from intense competition in mobile phone and data processing markets, as well as a more fundamental lack of strategic direction. Infineon's poor performance was due to falling revenue in the communications market because of a decline in demand for its products from struggling BenQ Mobile, which acquired Siemens' mobile phone arm during 2005.
While the industry has reached new levels in revenue, Gartner analysts said major risks still exist for vendors.
"Semiconductor manufacturers need to watch the performance of their end customers ever more closely as a major part of the industry becomes increasingly tied to consumer spending patterns," Mr. Norwood said. "The loss of market share in an end application, such as mobile phones, by a vendor customer can have a dramatic effect on the semiconductor vendor's business."
Gartner analysts said the performance of most semiconductor vendors this year can be traced to three major trends running through the industry: the participation in high-growth device markets such as NAND flash; gaining share in existing markets or exposure to original equipment manufacturers (OEMs) that have been winning or losing share.
"The first two trends are in the hands of the management of the vendor to set a clear strategy to take advantage of new opportunities, or to improve performance and to execute that strategy without distraction from everyday events," Mr. Norwood said. "The third trend, being aligned with successful OEMs, is much more difficult to achieve. In an industry increasingly being driven by consumer trends and fads, this volatility in the success of equipment vendors is only going to get more extreme. The only approach a vendor can take is to make sure that it is not overexposed to one particular OEM or market."
Additional information is available in the Gartner report "Market Share: Semiconductor Revenue, Worldwide, 2005 (Preliminary Estimates)." This report provides preliminary rankings for the top 25 companies worldwide, as well as the top 25 vendors based on relative industry performance. Regional market share results are also available for the Americas, EMEA, Asia/Pacific and Japan. The report is available on Gartner's Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=487343.
This research is produced by Gartner's Semiconductors Worldwide group. This research group combines memory, microcomponents, logic, ASIC, analog, discrete device, RF and optical segments into a complete industry picture. Products, suppliers, startups, technologies, regional consumption, applications and emerging technologies are all covered in this broad program. To subscribe to this service, please contact Becky Tonnesen at 408-468-8287 or at becky.tonnesen@gartner.com. More information on Gartner's semiconductor research can be found on Gartner's Web site at http://www.gartner.com/it/products/research/asset_129176_2395.jsp.
About Gartner
Gartner, Inc. (IT) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 9,000 clients, including CIOs and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Gartner Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has over 3,900 associates, including more than 1,200 research analysts and consultants in more than 75 countries worldwide. For more information, visit www.gartner.com.
SOURCE: Gartner, Inc
Dubi
8:16am 12/09/05
Chip industry on record pace in 2005, study says By Steve Gelsi
NEW YORK (MarketWatch) -- Worldwide semiconductor revenue will total $235 billion in 2005, a 6.9% increase from 2004, according to preliminary results from Gartner, Inc. This will be the first time that the semiconductor industry has surpassed the previous record-setting year in 2000 when revenue reached $223 billion. "Strong growth in the NAND flash market was a recurring theme in the 2005 market share rankings," said Andrew Norwood, research vice president at Gartner. "The continuing strong demand for flash card and USB flash drives in 2005, along with the successful launch of the iPod shuffle by Apple at the start of 2005 and the release later in the year of the iPod nano, will drive this device market to the highest revenue performance in 2005."
Dubi
R.e. Price predictions...
I fully understand Dubi, it's very difficult to predict something that is influenced by a myriad of variables, and as such is highly unpredictable in the near term. In the long term, a trend is easier to predict.
My comparison would be a leaf in a stream - it could move back and forth anywhere within a small section of the water, but over time it will move downstream.
I still think you are on the right track though: with the start of analyst opinions and coverage SFUN should appreciate nicely... Aiming4.
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