midastouch017
19 years ago
msystems Reports $219 Million in Revenues and Pro Forma Earnings Per Share of 21 Cents for the First Quarter of 2006
I probably sold out much too soon
Wednesday April 26, 8:45 am ET
Company expects revenues to approach 1 billion dollars in 2006
KFAR-SABA, Israel--(BUSINESS WIRE)--April 26, 2006--msystems(TM) (Nasdaq: FLSH - News), a leader in smart personal storage, today announced financial results for the first quarter ended March 31, 2006.
GAAP financial highlights for the first quarter:
Revenues were $219.1 million, an 87 percent increase compared with the first quarter of 2005
Gross margins were 20.4 percent
Net income was $7.1 million, or $0.17 per share on a fully diluted basis
Pro forma financial highlights for the first quarter, excluding the effects of stock based compensation expenses, amortization of intangible assets related to an acquisition, a one time gain from the sale of an investment and the related tax effects:
Revenues were $219.1 million
Gross margins were 20.6 percent
Net income was $8.7 million, or $0.21 per share on a fully diluted basis
As a result of the consolidation of the venture with a flash partner, first quarter revenues, cost of goods sold and operating income increased by $24 million, $15 million and $9 million, respectively, which were off-set by a minority interest of $9 million, resulting in the consolidation having no effect on net income or earnings per share.
Commenting on the results, Dov Moran, President and Chief Executive Officer of msystems, said, "We are very pleased with our results for the first quarter of 2006, in which we achieved revenues and net income well above our initial expectations despite difficult market conditions and seasonal weakness. This quarter we demonstrated the strength of our business model, which enables us to show strong performance even in a challenging environment through the effective use of our sales channels and our supply agreements, which provide us access to flash capacity at competitive prices, as well as the effective management of our inventory."
He continued, "We remain focused on our two primary target markets - the USB Flash Drive (UFD) and mobile markets. In the UFD market, U3 continues to gain traction worldwide as evidenced by our recent launch of U3 Smart Drives in Japan. In the first quarter, we also saw our first sales of mTrust (formerly Xkey) to Fortune 500 companies. In the mobile market, we are receiving positive feedback from customers for our new multi-sourced H3 mDOC and are beginning to see our first design wins. We also announced at 3GSM the commercial launch of 512 megabyte high density SIM cards with Orange and Oberthur."
Mr. Moran concluded, "As evidenced by the results of the first quarter, the demand for our products continues to be strong and we remain very optimistic that 2006 will be another successful year of exceptional growth for msystems. We believe that our people, technology, products and strategy position us well, and will drive our revenues in 2006 to approach the one billion dollar mark."
msystems will host a conference call to discuss its financial results and other matters discussed in this press release, as well as provide an update on the Company's outlook for 2006, at 10:00 a.m. EST today, April 26, 2006. The call will be available live on the Internet at www.m-systems.com and www.kcsa.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 12:00 p.m. EDT, April 26, 2006, until May 1, 2006 at 11:59 p.m. To access the replay, please call +1-973-341-3080; ID Code: 7251964.
About msystems
msystems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. msystems' product lines include:
mDrive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
mDOC embedded flash drives for mobile handsets and consumer electronics devices
mSIM MegaSIM® series high-density SIM cards and mSIM M.MAR® series SIM cards and highly secure cards (available both from msystems and its subsidiary Microelectronica)
mCard, high-quality memory cards for mobile handsets and digital cameras
mTrust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
mSSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications
mModule (formerly DiskOnChip® modular family) modular flash storage for embedded systems
mSafe (formerly SuperMAP® family) secure hardware and software crypto cores
More information is available online at www.m-systems.com. msystems. made smarter.
All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only. msystems is incorporated as M-Systems Flash Disk Pioneers Ltd.
http://biz.yahoo.com/bw/060426/20060426005577.html?.v=1
Dubi
midastouch017
19 years ago
msystems' Security IP Selected by National Semiconductor for New Generation Secured Processor for Automotive Applications
Tuesday April 4, 7:30 am ET
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 4, 2006--msystems (Nasdaq:FLSH - News), a leader in smart personal storage, today announced that it has entered into an agreement with National Semiconductor Corporation, a high-performance analog company.
Under the terms of the agreement, National will enhance its product offerings for the automotive market by integrating msystems' mSafe(TM) SuperMAP®-III cryptographic coprocessors within a secure controller system for automotive applications.
msystems' mSafe SuperMAP family of cryptographic cores implements sophisticated public key cryptography such as RSA and Elliptic Curve, as well as conventional data encryption algorithms. These patented, state-of-the-art software and hardware-based cores are setting attack counter measures standards amongst the highest in the secure-chip industry, while maintaining a high level of performance and power consumption levels.
"We want to provide our automotive customers with the highest security level available, and we have chosen msystems' cores due to their silicon-proven experience," said Wolfgang Hoeld, engineering director, Cores Development Group at National Semiconductor. "With its mSafe technology and excellent support, msystems offers highly secured products that have passed all levels of certification."
"We are excited about this opportunity to work with National, a leading supplier of high-performance analog solutions," said Noam Kedem, vice president of marketing, msystems. "Automotive products today are extremely sophisticated, mission critical, and prone to security hazards of various kinds. By using mSafe, National is able to minimize its risk and reduce time-to-silicon with our field proven and smart-card certified technology. mSafe is truly security made smarter."
About msystems
msystems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. msystems' product lines include:
mDrive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
mDOC embedded flash drives for mobile handsets and consumer electronics devices
mSIM MegaSIM® series high-density SIM cards and mSIM M.MAR® series SIM cards and highly secure cards (available both from msystems and its subsidiary Microelectronica)
mCard, high-quality memory cards for mobile handsets and digital cameras
mTrust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
mSSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications
mModule (formerly DiskOnChip® modular family) modular flash storage for embedded systems
mSafe (formerly SuperMAP® family) secure hardware and software crypto cores
More information is available online at www.m-systems.com. msystems. made smarter
http://biz.yahoo.com/bw/060404/20060404005556.html?.v=1
Dubi
midastouch017
19 years ago
msystems(TM) Expands Offering with Introduction of Industrial Grade CompactFlash(R)
Monday April 3, 8:26 am ET
With Densities Ranging from 32MB to 8GB, Added Ruggedness, Reliability and Security, msystems Makes CompactFlash Smarter
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 3, 2006--msystems (Nasdaq:FLSH - News), a leader in smart personal storage, today announced that it will be introducing mModule CF 5000, an Industrial Grade CompactFlash solution that will be available in a variety of capacities ranging from 32 megabytes to 8 gigabytes.
The addition of industrial grade CompactFlash to msystems' product line enables the Company to offer its customers a comprehensive set of solutions for the embedded market that also includes mSSD (formerly FFD(TM)), mDOC and the mModule uDOC and iDOC. Known for developing high performance memory solutions, msystems, through the mModule CF 5000, will also offer customers an unbeatable combination of outstanding reliability, security and an extended lifespan for an overall smarter solution. This is particularly important for mission-critical applications such as routers, PBXs, wearable computers, industrial PCs and point of sale (POS) equipment.
"Based on customer feedback and recent changes in the market, we see that the demand for industrial grade CompactFlash is quite strong. We believe that mModule CF 5000 provides the most rugged and reliable data storage solution for mission critical applications," said Noam Kedem, msystems' vice president of marketing. "We see this product introduction as building on our commitment to offer our customers a comprehensive range of solutions. mModule products, such as the CF 5000, deliver rugged and reliable memory solutions, made smarter."
With a central focus on developing smarter storage solutions, the mModule CF 5000 exemplifies a number of msystems' key attributes including:
High Performance - msystems' Ultra DMA 5 technology transfers data at a rate of 20MB/sec, and includes performance boosters such as multi-plane access and on-the fly error detection.
Outstanding Reliability - msystems' patented TrueFFS® technology in firmware brings top data integrity to mModule CF 5000, even during power loss. msystems' patented TrueFFS management solution applies dynamic bad block management, and error detection and correction code (EDC/ECC) to maximize data reliability.
Extended Lifespan - mModule CF 5000 performs dynamic and static wear-leveling to distribute data evenly over the flash media, thereby extending the flash lifespan up to 5 million write/erase cycles per block.
Powerful Protection - The mModule CF 5000 core implements sophisticated encryption algorithms, including 256-bit AES, sanitizing (Purge), and quick erase for superior security.
Highly Rugged - The mModule CF 5000 can withstand severe weather conditions, shock, high altitude and rigorous vibrations. mModule CF 5000 complies fully with MIL-STD-810F, meeting the strictest reliability requirements for mission-critical applications.
About msystems
msystems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. msystems' product lines include:
mDrive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
mDOC embedded flash drives for mobile handsets and consumer electronics devices
mSIM MegaSIM® series high-density SIM cards and mSIM M.MAR® series SIM cards and highly secure cards (available both from msystems and its subsidiary Microelectronica)
mCard, high-quality memory cards for mobile handsets and digital cameras
mTrust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
mSSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications
mModule (formerly DiskOnChip® modular family) modular flash storage for embedded systems
mSafe (formerly SuperMAP® family) secure hardware and software crypto cores
More information is available online at www.m-systems.com. msystems. made smarter.
Note to Editors: High-resolution photo images of msystems' products can be found on the Internet at www.m-systems.com/site/en-US/Corporate/PressRoom/ImageLibrary.
http://biz.yahoo.com/bw/060403/20060403005690.html?.v=1
Dubi
midastouch017
19 years ago
>>On Wednesday and Thursday, Deutsche Bank (NYSE: DB; LSE: DBK; XETRA, AEX, SWX, ATX: DBKG) will hold a conference of companies in London, in which M-Systems Flash Disk Pioneers (Nasdaq: FLSH) will also participate. Another importance conference of communications equipment manufacturers will be held in Boston by Credit Suisse First Boston.
Yesterday, analyst Craig Ellis of Salomon Smith Barney today upgraded M-Systems and Sandisk CP (NasdaqNM: SNDK) from "Hold" to "Buy", thereby completing an amazing mountain ride in his ratings for M-Systems. He started two years ago in June with a dramatic "Sell" rating and a target price of $15 a share. He then revised this to "Hold", apparently in response to the criticism he received, and in July last year he upped his rating again, to "Buy", with a target price of $33 a share. Ellis returned to "Hold" last October, and today he once again gave the stock a "Buy" rating and a target price of $38 a share. The share is currently traded at $12 lower than this price.
As I see it, throughout this period M-Systems has not experienced any slalom-like trends in its business activities, but rather, it has posted consistent growth in sales and profits. These waves might be good for short sellers and brokers wishing to earn commissions, but they are devastating for the small investor who prefers the "buy and hold" approach, that is, they want to buy in and stay put. In January, the short position for Sandisk jumped 48% and for M-Systems 17% to 2.3 million shares. >>
http://www.globes.co.il/serveen//globes/docView.asp?did=1000066556&fid=1176
Dubi
midastouch017
19 years ago
bellwetherreport.com: The Bellwether Report takes a closer into the movements of M-Systems Flash Disk Pioneers Ltd
via COMTEX
February 28, 2006
Feb 28, 2006 (M2 PRESSWIRE via COMTEX) --
Today the Bellwether Report has identified M-Systems Flash Disk Pioneers Ltd (Nasdaq:FLSH), a company that our analysts will be tracking over the ensuing weeks. They recently came out with a significant corporate development this month, causing a positive correction. For a full report on the below mentioned company, and many more, feel free to visit www.bellwetherreport.com for a free 30 day no obligation trial.
Incorporated in 1982, M-Systems Flash Disk Pioneers Ltd develops, manufactures, and markets flash-based data storage solutions for markets, such as mobile phones, personal computers, and set-top boxes, embedded systems, military/rugged applications, personal computers (PCs), and laptops. M-Systems' constantly offers top-of-the line quality and innovation and when combined with world-class partners, are able to deliver reliable, high-performance products to a growing, worldwide customer base.
M-Systems' has 4 main products which include both removable and on-board storage solutions in a wide range of capacities, interfaces, form factors and technologies. The company's DiskOnChip is a high performance, single-chip flash disk, offering a fast, cost-effective and compact solution for applications with limited space, such as Mobile headsets and PDA's.
Another M-Systems product, DiskOnKey, is a universal, pocketable, pen-sized, secure data storage device that connects directly to any laptop or PC Universal Serial Bus port.
Their third of four main products is the MegaSIM, a high capacity flash-based card with advanced security features, which enables a variety of compelling mobile applications in a standard SIM.
The last of M-Systems product is their Fast Flash Disk which is an advanced solid-state disk, designed for military, aerospace and network infrastructure applications that require highly reliable and durable data storage with superior read/write performance.
Focused on quality, customer satisfaction and innovative solutions M-Systems markets its products primarily to original equipment manufacturers and consumer electronics companies through a combination of sales force and independent distributors through offices in the United States, Japan, Taiwan, China, Korea, Israel and Europe.
This morning M-Systems was upgraded by Citigroup from a "hold" to a "buy" after Orange, M-Systems and Oberthur Card Systems announced a partnership to launch the world's first 512 megabyte high-density SIM Card. This SIM card will have 8000 times more memory than standard 64 kilobyte SIM cards. With the news of the upgrade shares of M-Systems surged over 8.0%, to $27.86 on decent volume.
The half-gigabyte SIM card has been.....
To view the full unbiased report on M-Systems Flash Disk Pioneers Ltd (Nasdaq:FLSH), feel free to visit our site. This article and many more are available for review under the Today's Articles Section. No credit Card Needed!!
Dubi
midastouch017
19 years ago
Citigroup flipflop on M-Systems: Now it's a Buy
28.2.06 | 16:32 By Omri Cohen
For the third time inside seven months, Citigroup has revisited its recommendation of flash technology (nonvolatile memory) stocks SanDisk Corporation (Nasdaq:SNDK) and M-Systems (Nasdaq: FLSH).
At the end of July 2005, analyst Craig Ellis gave both companies Buy ratings. His report triggered steep gains by both, prompting him to downgrade them to Hold in October. Yet both continued to climb to heights not seen in years.
Time to get into M-Systems stock?
In the last month, though, SanDisk and M-Systems were hit by profit-taking, a lot of it. SanDisk lost 22% and shares in the Israeli company retreated by 25%, placing them significantly below Ellis' price targets.
Yesterday he reversed and restored a Buy rating to the two stocks, leaving his targets unchanged: $79 for SanDisk and $38 for M-Systems.
His word evidently bears weight: the recommendations sent both stocks soaring on Nasdaq.
Regarding M-Systems, Ellis wrote that growing sales of cellphones, the introduction of the new mega-SIM cards and of removable memory cards has created a long-term growth driver. The spike in the company's share price in the fourth quarter of 2005, and the risk of low gross margin in the present quarter, persuaded him to wait for an appropriate point to recommend that investors get into the stock. That point has arrived, he believes.
Ellis raised his growth forecast for M-Systems' 2006 revenues from 35% to 43%. He believes the company's gross margin will be 22.5% of sales, mainly because of weakness in the second half of 2006.
For the year 2007, he also increased his revenue growth forecast, by a lot: from 9% to 21%.
The greatest challenge that M-Systems faced in the last year was having only two suppliers for the chips it designs: Toshiba and Samsung. By this summer, the South Korean company Hynex should commence production for M-Systems.
Deutsche Bank also feels that at its present levels, investors would be wise to pick M-Systems stock, if their horizon is longer than half a year.
http://www.haaretz.com/hasen/spages/688533.html
Dubi
midastouch017
19 years ago
M-Systems has a blockbuster, too
CEO Dov Moran: MegaSIM is the story of 2007 and onwards.
Gitit Pincas 20 Feb 06 17:19
M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH) fired off no less than 14 press releases during the 3GSM World Congress 2006 exhibition in Barcelona last week. The quantity of press releases might appear overwhelming at first glance, and presumably not every investor read them all, but hidden within were very interesting developments about the company and its highly publicized launch of MegaSIM. MegaSIM is technology that enhances SIM memory cards in order to boost the revenue of the world’s mobile network operators (MNOs).
The concept underlying MegaSIM is to provide more customer services, thereby boosting traffic, recruiting more subscribers, getting new business orders from MNOs, which will generate revenue for M-Systems. This is a huge market, given that over 1.5 billion SIM cards are sold annually. How much revenue will M-Systems accrue? That is hard to know, but to borrow a concept from pharmaceuticals, M-Systems very probably has another blockbuster in a market worth $1 billion or more. The company already invented a $1 billion market with its DiskOnKey (DOK), and the market for its MobileDiskOnChip (MDOC), a processor designed for handsets, has also reached this size.
“We hope for more than $50 million”
How was the 3GSM World Congress? “This industry is amazing, said M-Systems president and CEO Dov Moran after the conference. “Regrettably, I barely had time to walk around the exhibition, because we had so much work. Everyone will tell you that his pavilion was amazing, but M-Systems’ pavilion was truly awesome. Ask the other people who were there. We had two conference rooms that were constantly full. We had a lot of action. It was real fun. We got excellent responses to the products we launched.”
M-Systems is very serious about wireless, which is why it set up its fourth division -MNO - a new profit center whose gala was the 3GSM World Congress. MegaSIM is new, but the company is no stranger to wireless. Since 2001, M-Systems has sold millions of processors for handsets to six of the world’s seven leading manufacturers.
Let’s try to summarize M-Systems’ announcements, not necessary in order of importance. The company first announced its road map for its MegaSIM launch, a timetable that already includes the acquisition of Microelectronica Espanola, its new Spanish smart card subsidiary.
MegaSIM is already being used in pilots with major wireless operators, and commercial orders will begin during the third quarter. Initial orders will be for a 512-megabyte card, with a 1-gigabyte card following by the end of 2006. A series of 2-gigabyte and 3-gigabyte cards will be developed later this year. For the sake of comparison, a 512-megabyte MegaSIM card - the lowest capacity card - has 8,000 times the memory capacity of the standard 64-kilobyte SIM card.
M-Systems also announced a partnership to launch the world’s first 512-megabyte high-density SIM card with Oberthur Card Systems (Euronext:124133). Oberthur will sell the SIM card with M-Systems’ platform to Orange, the first operator to use it. Deployment will begin in France, initially on LG U8210 handsets, and will later spread to other countries and handsets.
Moran said, “Most of our future agreements are in this direction. Orange is buying MegaSIM through Oberthur, which buys from us, thereby making it possible to offer customers new services, such as music, games, and so on. The new division was established with a focus and the realization that it will have millions of dollars in sales of products to wireless within a few years.”
“Globes”: Is MegaSIM a story for 2007 only, or also for 2006?
Moran: “We’re just getting started. Look, we had $540 million in sales last year, so we probably won’t have $100 million this year, but it’s a very good start.”
A new report by Nollenberger Capital Partners analyst Casey Ryan states, “The products series and partnerships announced by M-Systems during the 3GSM World Congress are likely to boost the company’s revenue and profits more quickly than we expected. We expect that the company can even record more than $50 million revenue from its MegaSIM product line in 2007.”
Moran, your response please: is $50 million in line?
“We’re not providing further guidance about MegaSIM, but I’m prepared to say that I hope that for even more than $50 million [in sales] in 2007.”
As usual in launches of this kind, M-Systems has a slew of applications marketing and distribution agreements, some of which are only at the feasibility study stage, while others are already available for customers. Partners include wireless anti-virus program developers such as F-Secure (HEX: FSC1V), which protects content, McAfee Inc. (NYSE:MFE), which blocks unwanted files, and RSA Security (Nasdaq:RSAS), which provides a higher level of security; video applications companies, such as Actimagine, which preserves high-resolution rich content on cards; Picsel Technologies Ltd. for the viewing of, and interaction with, rich content on small screen devices; Secure Digital Container (SDC), a company that manages intellectual property rights for music files and games; Openbit Ltd. for licensing services for conditional access to licensed applications, such as games; and PowerHouse Technologies Group Inc., dba Migo Software (Nasdaq: PWHT.OB), which gives subscribers the ability to store, secure and synchronize their documents, computing profile, e-mail and Internet browser favorites using their mobile handsets, ultimately enabling smarter mobile services. This is indeed a varied and interesting range of partnerships.
In a conference call, you spoke about interesting future developments. You said the company would announce innovative and breakthrough technology during 2006. What are you talking about?
“I can’t divulge additional details at this time, except to say that this is breakthrough technology. Wait and see.”
In recent weeks, M-Systems has been changing its product names, as well as the company name, removing “Flash Disk Pioneers”, leaving only “M-Systems”.
“We changed our logo,” says Moran. “It was always said that the logo looked as if it had been copied from Merkavim Metal Works Ltd., with all those triangles. That will no longer happen. In addition, we changed our name, which was necessary. It used to include the word “Pioneers”, which always reminded me of some village in the Galilee. We don’t work with hoes; the word no longer seems relevant for us.”
These changes do not appear on M-Systems’ website.
M-Systems also changed the name of products to include the prefix “M”. “We analyzed the entire company and its products, and realized that we needed to be perceived more like one big company, rather than a group of divisions,” says Moran to explain the rationale. DiskOnKey will now be called M-Drive, and DiskOnChip will become M-DOC.
So you’ve given up the near-generic name DiskOnKey?
“It has really become generic, but we don’t sell the product under this name anyway. We only sell via companies that give their own labels to DiskOnKey. The truth is that I have a registered trademark on DiskOnKey, but that’s unimportant.”
M-Systems’ market cap exceeds $1 billion. Some shareholders exploited the share’s recent weakness - the publication of its financial report caused an immediate 11.4% drop in the share price - to increase their holdings in the company. According reports to the US Securities and Exchange Commission (SEC), Massachusetts Financial Securities Company (MFS) increased its stake from 4% at the end of 2005 to 8.3%, and Eastbourne Capital Management LLC increased its stake from less than 8% at the end of 2005 to 9.9%. On the other hand, RS Investments reduced its holding from around 8% in 2005 to 5.6%.
“We definitely want investment institutions to own larger stakes in the company, because they better understand our business, rather than opportunistic investors, who understand us less,” says Moran. Is he hinting to the fall in M-Systems’s share after it published its results for the fourth quarter of 2005 and the year as a whole? The company released excellent numbers for 2005, when it posted a profit of $52.6 million on $539.9 million revenue, and its guidance for the first quarter of 2006 calls for $140-170 million revenue. “Yes,” says Moran. “Logic says that more institutions will prevent such falls.”
Institutional or private investors - it’s hard to always find reasons for the market’s behavior, and Moran knows this. Do you want an example? Look at what happened to Lexar Media Inc. (Nasdaq:LEXR) last week. Lexar operates in M-Systems’ market and competes against SanDisk Corporation (Nasdaq:SNDK), making NAND flash memory products that include memory cards and DiskOnKey. On February 13, with no particular pangs of conscience at the especially late date, the company announced that it would post $240-245 million revenue for the fourth quarter of 2005, below forecasts. Lexar will lose $17-21 million for the quarter that is normally the industry’s strongest. Please note that the gross profit margin is 6-8%. Lexar chose not to hold a conference call about its severe profit warning, and will only hold one on March 6, when it publishes its financial report.
How did Lexar’s share react? Although there still no numbers, and preliminary figures are no source of joy for investors, the share subsequently rose 2.5%, and has risen by 5.3% since last week’s profit warning. Who says that market behavior can be predicted?
Published by Globes [online], Israel business news - www.globes.co.il - on February 20, 2006
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000063613&fid=980
Dubi
midastouch017
19 years ago
Ceedo countersues M-Systems over U3 technology
20.2.06 | 13:36 By Oded Arbel
M-Systems (Nasdaq: FLSH) released a flood of press announcements in the last week, all good things, but today it transpires that the Israeli company is under counter-attack in a patent claim.
In fact, both M-Systems and its affiliate U3 are being charged with patent infringement, by a fellow Israeli company, Ceedo Israel and Ceedo Technologies. The Ceedo group filed its grievances at the Tel Aviv District Court.
Actually, it is a countersuit after M-Systems sued Ceedo in January, claiming it was illegally making use of M-Systems' trade secrets. Specifically, M-Systems claims that Ceedo copied key components of its users interface.
In the countersuit, Ramat Gan-based Ceedo claims it had contacted M-Systems and shown it an innovative way to run applications on M-Systems hardware. Its method is the result of research it conducted through four or five years, Ceedo adds. In 2004, the two companies began working together.
Shortly after the two companies started working on the U3 project, Ceedo claims, M-Systems grasped the technological treasure it had in its hands and suspended work on the project, based on various claims. Half a year later, M-Systems "invented" the U3 concept using reverse engineering, Ceedo accuses.
The concept in question turns the mobile memory into a mobile working environment. A user can take the memory device with him on travels, plug it into any compatible PC and receive his usual desktop and environment.
Ceedo charges that M-Systems is the one that stole trade secrets, and added salt to the wound by suing. Its real purpose, Ceedo charges, is to impair its good name and buy it for a low price.
The startup is asking the court for a declarative ruling that M-Systems copied its technology and knowhow, and is asking for half a million shekels in compensation.
M-Systems' legal counsel commented that the lawsuit is merely designed to counter the original claim. The claims were groundless, he added.
Last Wednesday M-Systems announced that together with Orange and Oberthur Card System, it created a partnership to launch the world's first 512 megabyte high-density SIM Card. This SIM card will have 8000 times more memory than standard 64 kilobyte SIM cards, M-Systems said.
The day before, it and its subsidiary Microelectronica announced a plan to produce 1 gigabyte 2G and 3G SIM cards by the end of 2006. As the first part of the new offering, the companies said they would provide 512 megabytes M-SIM MegaSIM series SIM cards for pilots with mobile network operators in the second quarter, and that commercial availability should begin in the third quarter. The 1 gigabyte M-SIM MegaSIM series SIM cards are planned for rollout by the end of 2006 it said.
That same day M-Systems announced that it was teaming Up with RSA Security to provide two-factor authentication technology for Internet-based services.
http://www.haaretz.com/hasen/spages/685065.html
Dubi
midastouch017
19 years ago
Welcome to the club,
btw, an interesting article:
>>Anybody who has learned technical analysis has seen the charts of some stock or other, usually by projector (and the more the market rises, the more projectors there seem to be). The charts are gay and dotted with marks, over which the infra-pen zips about, indicating a point at which the analysis shows you should have sold Google at $445. The smiling lecturer will say, "Imagine how much you would have made if you'd sold at $445." To remind you, Google is now at $360 and at $120, they didn't think they should float it, and approximately from $160, chartists have said it would be technically wise to go short on the stock.<<
The Tel Aviv Tarot
15.2.06 | 16:48 By Alony Madar
The Tel Aviv Stock Exchange has strong support at 800 points!!
Every time I hear something like that, I start to itch. What does the market have at 800 that it doesn't have at 810, or 765?
I assume that aficionados of technical analysis, accompanied by brightly colored charts and waves that even Gal Friedman wouldn't know how to handle, are confident that it works. Partly because of the simple fact that always, but always, it can prove that you should have sold yesterday. Which is something like knowing the lottery numbers the day after.
Anybody who has learned technical analysis has seen the charts of some stock or other, usually by projector (and the more the market rises, the more projectors there seem to be). The charts are gay and dotted with marks, over which the infra-pen zips about, indicating a point at which the analysis shows you should have sold Google at $445. The smiling lecturer will say, "Imagine how much you would have made if you'd sold at $445." To remind you, Google is now at $360 and at $120, they didn't think they should float it, and approximately from $160, chartists have said it would be technically wise to go short on the stock.
But the point isn't Google. It's blind reliance on numbers drawn from the scribblings of chartists, weird and wild numbers that some believe are the spot at which the market will stop when it's dropping (support levels) or rising (resistance levels). Any breakthrough of the figure will result in another figure, and so on for eternity.
The words "technical analysis" are meant to indicate that a method, or examination, are being used here. The phrase is meant to extract the field from the realm of mysticism into an accurate, perhaps even scientific, dominion, even though it has never been empirically proved that using these waves prevents drowning.
A short-cut through the shoals
Technical analysis, or charting, has many admirers, for reasons of convenience. It is very convenient to assume that there is a method that can predict market fluctuations.
Method? Analysis? A whole discipline, even.
The capital market engages in money, the most desired product in the world, and here is a method that can help us investors generate money. Not just any method, but one sporting big names, formulas and graphs, all in live color.
From the time the world was created, humankind has sought magical solutions and slavishly followed the strangest of ideas. Some wanted to change lead into gold. Others chased after the fountain of youth and novice physicists have sought through the ages for a perpetual mobility machine.
In my opinion, technical analysis, or any other claimed method to beat the market, deserves a place of honor on that list.
Anybody searching for the absurd in charting can find it in analysis of a derivative. Believe it or not, I have seen people who see a certain price of an option on the TA-25 index (a Maof option) as a support level, meaning, as though it were severed from the underlying asset. Others technically analyze currency exchange rates in Israel and relate importance to this or that point, without considering the domestic and international forces influencing the dollar-shekel rate. You can read these analyses on the websites every day: "The dollar has a support level at NIS 4.68 and a resistance level at NIS 4.72" and so on. The numbers change but paper suffers everything.
With hindsight...
The temptation in the method derives from its magnificent ability to analyze the past. It always works in retrospect. The accuracy of the analysis of the past leads people who learn the method to assume the same chart will predict the future. You know how the prophecy works out.
The truth must be told: technical analysis has many supporters. I believe it is the victory of hope over experience. It looks like a short-cut through the capital market. Instead of gaining experience over time, you choose a path that you hope will increase your understanding of the product, which is an entire world in and of itself - the capital market.
Anybody who thinks the graph has it all, should know that the graph has almost nothing except for past share prices. It has nothing over reading coffee grinds or Tarot cards.
Any attempt to determine numbers at which the market will react in a certain way is doomed. It won't help to set the boundaries between 818.45 and 766.68 points. Adding that second decimal place adds a veneer of accuracy to the method, but the truth remains what it is: it's just another point on a stock's ride up or down.
Some say that since the system exists and has many supporters, it's a case of the tail wagging the dog. Ergo, when the market reaches a certain point marked by the chartists, it will react. The believers will react, or the ones who don't believe will react because they know what the believers are thinking. Reverse psychology.
By the way, "reverse psychology" is the alpha version of game theory. Who's prepared to bet how a player, who knows that 800 points is a support level, will react when the market reaches 800 points? Does the knowledge that that player will buy, not mean that somebody will be found to sell to him, knowing the believer will buy?
The capital market is replete with players and strategies. People scrabbling about for accurate points are wrong. The market achieves its balance at any given moment, or second. There are no magic numbers at which it feels more comfortable. There is no number that has some mystical ability to brake economic, political or security-related events.
The capital market lives, breathes and kicks because of the money streaming in or out. That money arrives from people influenced by events and developments, plus an element of greed offset by fear. That is the whole story. It is a story, not a pretty graph.
http://www.haaretz.com/hasen/pages/ArticleContent.jhtml?itemNo=683348
Dubi
midastouch017
19 years ago
Orange, M-Systems and Oberthur Card Systems Unveil World's First 512 Megabyte SIM Card
Wednesday February 15, 1:30 am ET
Realizing Advanced Mobile Services Powered by High Density SIM Memory in Cooperation with LG Electronics
BARCELONA, Spain--(BUSINESS WIRE)--Feb. 15, 2006--Orange, M-Systems (NASDAQ: FLSH - News) and Oberthur Card Systems today announce a partnership to launch the world's first 512 megabyte high-density SIM Card. This SIM card will have 8000 times more memory than standard 64 kilobyte SIM cards.
The half-gigabyte SIM card has been produced by Oberthur Card Systems and is empowered by M-Systems' platform. Orange will be the first mobile network operator (MNO) to offer multimedia content services to subscribers via 512 megabyte SIM cards. The high density SIM will be rolled out across Orange European markets in 2006, commencing in France, where it will be initially available on an LG U8210 handset.
The SIM will transform the mobile phone into a true multimedia player, capable of securely storing a music library containing up to 125 songs, three full-length movies, or 80 Java games. The 512 megabytes offering will enable subscribers to store comprehensive SMS, MMS and e-mail archives, complete with attachments, in addition to complete PIM and calendar functionality.
The new SIM card is also a highly-secure authentication device connecting the subscriber to the network. At the same time, it enables secure portability of sensitive personal data and DRM-protected files, permitting instant access to additional services and content.
M-Systems' MegaSIM® offers new opportunities for MNOs to change the way they interact with their customers and further differentiate themselves from competitors. For handset manufacturers benefits include better scalability of memory for subscribers to enjoy and benefit from an enhanced mobile experience.
Frank Boulben, Executive Vice President, Brand Consumer Marketing, Orange, comments: "This collaboration demonstrates our continued commitment to delivering an end-to-end multimedia solution to our customers. This high density SIM brings with it a range of customer benefits: portability, choice, security and personal spontaneity, we expect the value delivered to our customers through this technology will be empowering. The ultimate end-user experience is set to chart previously unexplored territory, something we are very excited about."
Alain Jarre, Mobile and Solutions Marketing Director at Oberthur Card Systems added: "Oberthur Card Systems is once again at the forefront of the smart card industry innovation. In this pioneer experience, we are particularly proud once again to be supported by Orange. Last year, Orange was already a visionary by being the first wireless group involved in the GIGAntIC project. After 12 mouths of hard work, we are the only players to present mobile services powered the world's first 512 megabytes high-density SIM Card."
A high-density SIM with abundant flash-based storage offers a secure, removable, standardised, and accessible memory resource. This alleviates the need to design additional card slots in handsets to provide scalable storage in multimedia handsets. The high density SIM card allows subscribers to take their environment and personal settings with them when they upgrade their phone and enables far wider scope for what can be stored on the SIM with its substantially increased capacity.
"With more than 1.5 billion SIM cards expected to be sold next year, there is a massive opportunity in the market for a secure MNO-provisioned SIM card with high-density memory," said Simone Cavallo, general manager of M-Systems' MNO division. "We are pleased that our MegaSIM platform, incorporating M-Systems' TrueFFS® flash file management, will provide a robust mechanism for generating new services, content, applications and, of course, revenue streams, making mobile services smarter."
High-speed data interfaces enhance overall USIM performance and high level cryptographic security can provide security at levels never previously considered feasible. This increased functionality will give mobile network operators like Orange, much greater scope to tailor products and services, helping to address the key industry challenge of reducing customer churn, and offer an optimal storage solution for the delivery of secure mobile multimedia content and services.
For more information and demonstrations, please visit Oberthur Card Systems' booth at the 3GSM World Congress (Hall 8 - Booth B34) from the 13th to the 16th of February 2006 at Fira de Barcelona, Spain.
About Oberthur Card Systems
With sales of 500.8 million Euros in 2005, Oberthur Card Systems is one of the world's leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.
Innovative products, security expertise and high quality services ensure Oberthur Card Systems' strong positioning in its main target markets:
Payment & Services: 53% of 2005 revenues. World leader and number one supplier of Visa and MasterCard payment cards
Mobile Communications: 32% of 2005 revenues, with open and interoperable solutions based on Java(TM) technology.
Identity: strong positions in ID projects throughout the world
Multimedia: leading position in the Pay-TV market with an end-to-end expertise in the value chain: software development, manufacturing and personalization
Transit: focus in the high-end segment with a microprocessor-based offer
Close to its customers, the company benefits from an industrial and commercial presence across all five continents. Listed on the Euronext Stock Exchange (ISIN: FR0000124133) since July 2000, Oberthur Card Systems is a subsidiary of the Francois-Charles Oberthur Group.
For more information, visit www.oberthurcs.com
About LG Electronics, Inc.
LG Electronics (KSE: 06657.KS) is a global leader in providing cutting-edge, convergent electronics, information and communications products designed to meet the diverse needs of fast-changing consumers. With consolidated sales of US$37.7 billion and overseas sales of US$ 32.6 billion (86% of total sales), LG Electronics employs more than 70,000 employees in 76 subsidiaries located in 39 countries and operates four business units including Mobile Communications, Digital Appliance, Digital Display and Digital Media.
LG Electronics Mobile Communications Company is the world's leading manufacturer of WCDMA (UMTS), CDMA and GSM handsets, and the fastest growing manufacturer of mobile phones worldwide. The company provides a total range of wired and wireless solutions, and is rapidly establishing a global presence as it cultivates international market share in 3G handsets. For more information, please visit www.lge.com
http://biz.yahoo.com/bw/060215/20060214006553.html?.v=1
Dubi
midastouch017
19 years ago
M-Systems and Microelectronica Announce Plan for 1 Gigabyte SIM Cards by End of 2006
Wednesday February 15, 1:25 am ET
World's Highest Density SIM Cards Are Expected to Provide Mobile Network Operators with New Revenue Opportunities Through Smarter Mobile Services
BARCELONA, Spain--(BUSINESS WIRE)--Feb. 15, 2006--M-Systems (Nasdaq: FLSH - News), a leader in smart personal storage, and its subsidiary smart card company, Microelectronica, today announced their expanded 2006 M-SIM(TM) product roadmap including the M.MAR series of 2G and 3G SIM cards and the MegaSIM® series of high-density SIM cards. As the first part of the new offering, the companies further announced today the planned availability of 512 megabytes M-SIM MegaSIM series SIM cards for pilots with mobile network operators (MNOs) in Q2 2006 and planned commercial availability in Q3 2006. 1 gigabyte M-SIM MegaSIM series SIM cards are planned for rollout by the end of 2006.
This new product roadmap, the first issued since M-Systems' acquisition of Microelectronica in November 2005, includes products which integrate Microelectronica's M.MAR SIM software and operating system with M-Systems' flash management technology as part of the MegaSIM platform.
M-Systems has been at the forefront of promoting high-density SIM cards in the mobile market. The new M-SIM MegaSIM series will enable MNOs to offer subscribers a secured product with advanced capabilities, enabling smarter mobile services, such as multimedia content, games, messaging and enterprise applications.
"The deployment of our M-SIM MegaSIM series SIM cards in 2006 represents a major step forward for the SIM card market and reinforces our commitment to making mobile services smarter. In addition, this roadmap demonstrates the value of bringing Microelectronica's secured manufacturing capabilities into the M-Systems family," said Simone Cavallo, general manager of M-Systems' MNO division. "Our ongoing collaboration with major market players as represented by our announcement earlier today with Orange, Oberthur Card Systems and LG Electronics, demonstrates that key players in the mobile network ecosystem see the value and promise of secure, high-density SIM cards. We believe that the additional functionality of our M-SIM MegaSIM series may provide our partners with new, smarter ways to drive revenue."
Leveraging M-Systems' flash expertise with its field-proven M-Safe(TM) crypto core technology, globally trusted in millions of smart cards, the MegaSIM platform, incorporating M-Systems' TrueFFS® flash file management, combines high-density flash storage (64 megabytes to 1 gigabyte), processing power, high-speed data protocols and crypto functionality. M-Systems' MegaSIM platform far enhances typical SIM architecture while maintaining full compatibility with legacy industry standards. SIM cards powered by M-Systems' MegaSIM platform, such as M-Systems' M-SIM MegaSIM series, will provide MNOs with an intuitive, ubiquitous interface and a high-density, high-speed platform. By deploying these SIM cards, MNOs can increase revenue streams, while at the same time offer a new sales channel for software developers and, last but not least, a smarter mobile usage experience for subscribers.
The product series announced today includes:
1. M-SIM M.MAR series of 2G and 3G SIM cards available with EEPROM memory from 32 kilobytes to 1 megabyte complying with 3GPP Release 5 and Release 6 specifications. M-SIM M.MAR SIM cards have full support for standard OTA/BIP, STK, Java functionality, micro-browsing, BIP, crypto and both 2G and 3G versions.
2. M-SIM MegaSIM series high-density SIM cards with flash memory densities ranging from 64 megabytes to 1 gigabyte. The M-SIM MegaSIM series will offer:
Full UICC, (U)SIM functionality for 2G and 3G
64 megabytes (MB), 128 MB, 256 MB, 512 MB and 1 gigabyte of flash memory
High speed interface support
32-bit ARM SC100 CPU
448 kilobytes of ROM, 64 or 128 kilobytes of EEPROM, 16 kilobytes of SRAM
Java interoperable functionality
Enhanced M-Safe crypto engine with PKI, 3DES and on-the-fly AES support
Support for 3rd party mobile software applications
USAT interpreter
WIB 1.3
BIP
About M-Systems
M-Systems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, M-Systems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. M-Systems' product lines include:
M-Drive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
M-DOC embedded flash drives for mobile handsets and consumer electronics devices
M-SIM MegaSIM® series high-density SIM cards and M-SIM M.MAR® series SIM cards and highly secure cards (available both from M-Systems and its subsidiary Microelectronica)
M-Card, high-quality memory cards for mobile handsets and digital cameras
M-Trust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
M-SSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications
M-Module (formerly DiskOnChip® modular family) modular flash storage for embedded systems
M-Safe (formerly SuperMAP® family) secure hardware and software crypto cores
More information is available online at www.m-systems.com. M-Systems. Made smarter.
http://biz.yahoo.com/bw/060215/20060214006552.html?.v=1
Dubi
midastouch017
19 years ago
M-Systems to Team Up with RSA Security to Provide Strong Two-Factor Authentication for Online-Based Services
Tuesday February 14, 8:00 am ET
Combination of M-Systems' Smart Personal Storage Solutions and RSA(R) SecurID(R) Technology to Enable Broader Access to Strong Authentication
SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 14, 2006--M-Systems (Nasdaq: FLSH - News), a leader in smart personal storage, and RSA Security today announced a partnership pursuant to which M-Systems expects to utilize RSA SecurID® two-factor authentication technology across multiple personal storage products, platforms and markets. From M-Systems' MegaSIM platform to its USB-based secure storage token platform, in the mobile, consumer and enterprise markets, the amalgamation of the companies' respective technologies is set to increase data security while keeping end-user implementation intuitive and simple.
Two-factor authentication solutions are strongly recommended to combat the growing epidemics of identity theft, phishing and other security breaches and are particularly important for industries such as banking, telecommunications and transportation where sensitive data is being used, accessed, carried and transmitted.
"At a time when identity and corporate data theft are on the rise, users are looking for smarter products offering the maximum level of security and personal value to the end user without impacting convenience or ease-of-use. Adding RSA SecurID technology to our smart personal storage solutions will provide a high level of protection and peace of mind across multiple platforms," said Noam Kedem, vice president of marketing, M-Systems. "Our partnership with RSA Security can enable M-Systems to offer strong two-factor authentication ensuring users can securely access and control their online accounts, data and services wherever and whenever they choose. It is a perfect example of how we make personal storage smarter."
"We are very pleased to be working with M-Systems in order to provide increased flexibility for organizations utilizing smart personal storage, as well as two-factor authentication," said Toffer Winslow, vice president of product marketing and management at RSA Security. "Embedding our strong authentication technology into M-Systems' product lines can deliver phenomenal advantages to end-users and application providers alike. There is a strong synergy between our companies in multiple markets - mobile, consumer and enterprise, and we look forward to what the future holds for our joint efforts."
The companies plan to jointly approach their existing and new customers to promote the fruits of their collaboration. As guidance from agencies such as FFIEC drive broader interest in two-factor authentication options, this joint solution is expected to provide an attractive option to organizations seeking to ensure compliance and improved security.
About M-Systems
M-Systems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, M-Systems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. M-Systems' product lines include:
M-Drive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
M-DOC embedded flash drives for mobile handsets and consumer electronics devices
M-SIM MegaSIM® series high-density SIM cards and M-SIM M.MAR® series SIM cards and highly secure cards (available both from M-Systems and its subsidiary Microelectronica)
M-Card, high-quality memory cards for mobile handsets and digital cameras
M-Trust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
M-SSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications
M-Module (formerly DiskOnChip® modular family) modular flash storage for embedded systems
M-Safe (formerly SuperMAP® family) secure hardware and software crypto cores
More information is available online at www.m-systems.com. M-Systems. Made smarter.
http://biz.yahoo.com/bw/060214/20060214005311.html?.v=1
Dubi
midastouch017
19 years ago
M-Systems plays its card
What message will M-Systems CEO Dov Moran deliver at the 3GSM World Congress in Barcelona?
Shlomi Cohen 14 Feb 06 11:36
The heavy snow that fell in New York at the weekend and the freezing weather conditions were the talk of the day among dealers at Wall Street, at least at the beginning of the new trading week.
From today through Thursday attention on the tech stocks front will focus mainly on Barcelona where the 3GSM World Congress is due to get underway. The meeting will produce a good many new views about innovation in the cellular field, some of which will no doubt move several stocks during the course of the week.
Speaking at the Barcelona congress will be CEOs of mega companies, among them Microsoft CEO Steve Ballmer (Nasdaq:MSFT), Motorola CEO Edward J. Zander (NYSE: MOT), the new Nokia CEO Olli-Pekka Kallasvuo, (NYSE: NOK), as well as executives from leading cellular companies in Europe. Also scheduled to speak is M-Systems CEO Dov Moran (Nasdaq:FLSH), who is set to unveil the MegaSim card, which is due to go on sale by the year’s end. In this connection, the company featured in an article in the Wall Street Journal, which reported on the market for flash cards for cell phones. This is a market that will experience mega growth over the coming years.
The cell phone has become an entertainment complex, supporting applications for TV and radio broadcasts, music, games and photography. Both of the cell phone manufacturers mentioned above face continuing demands to reduce the size of their sets to the size of a small chocolate bar. The result is that there is not enough room, and designers fight over every millimeter of space. These applications require a large memory and the solution that appears most likely to emerge in the coming years is a handset with a special slot for a flash card with high storage capacity, similar to the technology in use today in digital cameras.
According the Wall Street Journal, the number of mobile handsets worldwide with special flash card slots reached 100 million in 2005, and this figure is set to increase sevenfold by 2010. The most popular card in use today is the multimedia card, which is available in sizes of up to 1Gigabyte (GB) and whose standard is supported by Samsung, the world’s largest flash manufacturer, and Nokia, the world’s largest maker of handsets. M-Systems is set to make its entry into this market today at Barcelona, with the expected announcement of a number of cooperation agreements.
In contrast to DiskOnKey (DOK), M-Systems is not inventing anything new this time round, but is rather integrating existing products and assimilating new technologies that it has developed over recent years, specifically the encoding technology developed by the Israeli company Fortress, which M-Systems acquired several years back. M-Systems’ rivals, such as Sandisk (Nasdaq:SNDK), were either surprised at the outset by the unveiling of the DOK, or dismissed the new invention and took their time in entering the new market themselves, a move which helped M-Systems grab a substantial market share. Things are different where the MegaSim is concerned; the sharks have been around for some time, and it will be interesting to see if the company will this week disclose the marketing agreements it signed last year. Faithful to the strategy of not selling anything directly under its own name on the shelves of retail chains, M-Systems has opted this time around for sophistication. It did not pitch the mobile DiskOnChip (MDOC) to its OEM customers, since they are the ones who manufacture the handsets, but instead, it approached a new class of customer, in the form of cellular operators such as Orange, for example, and they are the ones who will sell the card.
The card, which will be well secured, integrates SIM data, or the identity of the set owner, with new functions such bank account or credit card details, a sort of electronic wallet, together with high storage capacity of at least 1GB. Cellular companies have a financial interest in maintaining the link between customers’ electronic wallets and phones. M- System’s new marketing strategy, therefore, will provide cellular companies with the impetus to sell the MegaSim card and be among those bargain hunters who will cash in on the services provided to the user via their sets. Examples of this can be seen in the new services being added daily to existing 3G networks.
Published by Globes [online], Israel business news - www.globes.co.il - on February 14, 2006
http://www.globes.co.il/serveen//globes/docView.asp?did=1000061246&fid=1176
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18 years ago
