M-Systems flash Disk pioneers, the Tel-Aviv, Israel-based flash memory data storage manufacturer has reported fourth quarter net losses of $797,000 down on profits of $118,000 on revenues down 17.3% at $4.8m; net losses for the year to December 31 were $270,000 up from losses of $5.5m on revenues that fell 14% to $16.3m. Company president, Dov Moran believes the introduction of what the company claims is the world’s first single-chip flash disk overshadows short-term finances. With ambitions to be world leader in Flash-based local storage, Moran says M-Systems aims to reach $100m in annual sales within three years. The introduction of a new product, DiskOnChip Millennium in the fourth quarter caused problems because mass production is not scheduled until the end of the first quarter and in the interim the company was obliged to supply OEMs with compatible products from its existing range that were more expensive to make but were sold at the price of the new product. As a result, margins fell to 30% and together with bigger marketing costs, M-Systems plunged into the red.
