FREMONT, Calif., February 7, 2001 – Lexar Media, Inc. (Nasdaq: LEXR), a leading designer, developer and marketer of award-winning high-performance digital film and connectivity products for the digital photography market, today reported revenues for the fourth quarter and fiscal year ended December 31, 2000. Total revenues for the year were $88 million, a 201% increase over the $29.2 million in revenues reported for the previous year. Fourth quarter shipments totaled $20.2 million. Revenues for the quarter totaled $16.2 million, a 37% increase over the $11.8 million in revenues recorded in the fourth quarter of 1999.
Excluding stock-based compensation charges, one time net charge related to the settlement of its litigation with SanDisk and imputed interest charges, Lexar’s pro forma loss was $12.5 million for the fourth quarter of fiscal 2000, or $0.22 per share, compared to a pro forma loss of $5.9 million, or $0.19 per share for the third quarter of fiscal 2000, and $3.6 million, or $0.52 per share for the fourth quarter of fiscal 1999. Including stock-based compensation charges, the one time net charge related to the SanDisk litigation settlement and imputed interest charges, Lexar’s loss was $20.9 million, or $0.37 per share, for the fourth quarter ended December 31, 2000, compared to a loss of $14.3 million, or $0.46 per share, for the third quarter ended September 30, 2000, and a loss of $4.9 million, or $0.71 per share, for the fourth quarter ended December 31, 1999.
“Overall, 2000 was a terrific year for Lexar,” said John Reimer, President and Chief Executive Officer of Lexar Media. “Aside from tripling our revenue over 1999, we also settled a two-year-old litigation with SanDisk, became a public company and executed a significant agreement with Sony in which Sony made a financial investment in the Company and enabled Lexar to become the only licensee to offer Memory Stick under its own brand name in the digital photography market. With this partnership, Lexar is now the only company to sell digital film under its own brand in the three most common formats: CompactFlash, Memory Stick and SmartMedia.”
John Reimer added, “Although Lexar shipped a record 1.9 million units in 2000, the Company faced a fourth quarter that was more challenging than expected largely due the factors detailed in our news release dated December 20, 2000 and discussed on our December 22nd conference call. While we are pleased with the strong consumer demand for our products in the retail aftermarket in the fourth quarter, we anticipate that it will take a couple of quarters for our internal and channel inventories to return to targeted levels. We, along with other major vendors of consumer electronic and photography products, remain cautious regarding the possible impact of uncertainties in the nation’s economic outlook on our performance in 2001.”
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