Saifun maintains high profitability
The company posted a non-GAAP net profit of $11.3 million for the second quarter of 2006.
Roee Bergman 26 Jul 06 13:21
Saifun Semiconductors Ltd. (Nasdaq:SFUN) has published its financial report for the second quarter 2006. Non-GAAP revenue for the quarter increased 16% to $17.4 million, from $14.9 million in the corresponding quarter in 2005. Licensing revenues for the quarter totaled $11.1 million compared to $11.7 million in the corresponding quarter last year.
Gross profit for the quarter totaled $14.3 million, compared to $12.6 million in the corresponding quarter last year. Operating profit for the quarter was unchanged at $9 million or 52% of revenue, from the corresponding quarter. Saifun has continued to maintain a profit margin that is high for this industry.
Saifun’s non-GAAP net profit for the second quarter totaled $11.3 million or $0.36 per basic and $0.34 per diluted share, compared with $8.9 million in the corresponding quarter last year. The company managed to beat the forecasts of analysts on Wall Street, who forecast earnings per share of $0.28 million on $16.83 million revenue.
Saifun president Kobi Rozengarten said, “We achieved our primary operational and strategic objectives during the second quarter. We realized year-over-year growth in non-GAAP revenues driven by increased service revenue as our partners progress toward mass production of NVM products utilizing our NROM technology. During the next six months, we expect to see Saifun's licensees release engineering samples of new flash products utilizing our Quad NROM technology, with their volume production expected to commence in early 2007.The upcoming commercial launch of new 4-bit products represents a major milestone for Saifun.”
Saifun has developed a technology called NORM which enables flash chip manufacturers to double memory capacity on non-volatile-memory (NVM) applications. It licenses its products to various companies. The company was issued on Nasdaq in November 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on July 26, 2006
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