SimpleTech have reported a 19 percent sequential revenue increase, significantly exceeding its previous guidance of 10 to 15 percent growth.

The Santa Ana, Calif.-based maker of flash and DRAM memory technologies said revenues climbed to $68.7 million in Q4. That represented a 50 percent increase year-over-year.

Net income grew to $600,000 or 1 cent per share compared with $153,000 or 0 cents per share for the same quarter a year ago.

For the full year, SimpleTech's revenues shot up to $211.8 million a 20 percent increase from the previous year. Net loss also grew to $1.7 million compared to $1.3 million the previous year. SimpleTech said the company's results included the impact of investment -- $8.6 million in 2003 and $7.9 million in 2002 -- in its emerging Xiran division, which produces accelerator card products.

"We are pleased with the significant revenue growth achieved during the past three quarters," said Manouch Moshayedi, CEO, in a statement. "Our flash revenues were limited by supply constraints in the second half of 2003, and our flash margins were negatively impacted by supply cost disadvantages relative to our largest competitors.

"However, we believe as additional flash suppliers enter the market and supply constraints ease our component purchase costs and gross margins will improve," he said.

"Several factors are positively impacting the DRAM market, including a strengthening of business in the technology sector and a firming of DRAM prices in recent weeks during the seasonally weak period of the year."