Lexar Media, Inc., a leading marketer and manufacturer of NAND flash memory products, announced financial results for the fiscal third quarter ending September 30, 2005.
The company posted a revenue of US $189.4 million in the third quarter, this is up 15% from the same quarter last year and down 1% from the second quarter of 2005. Compared to revenues from license and royalty of $1.2 million in the same period last year and $1.0 million in the previous quarter, it increased to $4.5 million in the third quarter of 2005. The most impressive growth was seen in the net income where Lexar $2.4 million in the third quarter compared to a loss of $3.5 million in the same period last year and a net loss of $4.9 million in the preceding quarter of 2005.
Speaking on the occasion Eric Stang, chairman, CEO and president, Lexar, said, “We are pleased to report a net profit for the third quarter due primarily to improved gross margins. Increased license and royalty income, diversified flash sourcing, favorable retail product mix and process improvements all contributed to the improvement in gross margins, which was partially offset by increased other component sales into OEM markets and additional inventory write-downs. Our total cash, cash equivalents and short term investments exiting September improved to $157 million from $136 million in the previous quarter, as cash from operations generated approximately $26 million during the quarter and we achieved our third consecutive quarter of positive operating cash flow.”
Mr. Stang further stated that he is projecting revenues of at least $220 million for the fourth quarter of 2005 and a net profit.
Some other notable announcements from Lexar are as follows:
– That it has extended and renewed its strategic supply and license agreements with Samsung. The new agreement extends the supply agreement for an additional five-year term.
– Expanded its licensing relationship with Sony.
– Announced that it has settled its patent infringement case with Memorex.
– Announced that both federal and state securities litigation pending against it have been dismissed.
– Strengthened its line of memory card readers from the new Professional CompactFlash Reader and high-speed multi-card readers to the single slot unit ideal for the mobile photographer.
– Announced the availability of JumpDrive Secure II, a second generation USB flash drive featuring 256-bit AES Encryption.
– Announced its LockTight CompactFlash security system.