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
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