Flash Memory

In: Business and Management

Submitted By mircea
Words 1585
Pages 7


Flash Memory Inc is a company operating in the computer and electronic device memory market, based in San Jose.
Like many others Silicon Valley society was founded during the high tech boom of the
All the founders cover the top management positions and owned the entire company’s equity. Its success was mainly due to a specialization in a niche of the market that allows it to compete with bigger and more consolidated companies.
The lifecycle of their product is quite short and reflect a market with constant and quick innovation, so also the investment horizon is short term.
The market in which the company is focused, SSDs, it’s raised from 400 Million $ in
2007 to 1.1 billion in 2009 and was projected to grow to 5.3 billion in 2013.
Since 2007 sales steadily increased with an average growth of 7.6% per year, but investment in current asset are grown even more with an increase of 12.2 annual rate.
Like the majority of the society in the technological sector they invest heavily in planning and innovation and one big question is the financial covering of its investments. Flash memory inc make an heavy use of notes payable from the company’s commercial bank and it was willing to lend up to 70% of the value of receivables but the company reached this limit and need a larger percentage because with the increased of sells the working capital required growth and the internal cash flow has not been sufficient to cover this increase in receivables and inventories.
The forecasting of growth show that sales will grow from 120 Million in 2010 to 144
Million in 2011 and 2012 and after that sells will…...

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