Msystems 6-K Current report (foreign)

Exhibit 2

	Year ended December 31,
	1999			2000		2001			2002			2003			2004		2005		Total
Net Income (loss) - as previously reported	$	(1,654	)	$	6,279	$	(41,785	)	$	(5,500	)	$	914		$	24,150	$	52,640
Restatement effect:
Costs of goods sold		61			156		143			138			261			209		191
Research and development, net		192			527		531			447			1,146			1,061		961
Selling and marketing		444			1,224		1,145			933			1,729			1,625		2,441
General and administrative		139			410		330			183			725			726		673
Total restatement effect		836			2,317		2,149			1,701			3,861			3,621		4,266		18,751
Net Income (loss) - as restated	$	(2,490	)	$	3,962	$	(43,934	)	$	(7,201	)	$	(2,947	)	$	20,529	$	48,374

	Year ended December 31, 2003									Year ended December 31, 2004							Year ended December 31, 2005
	As previously reported			Adjustments			As restated			As previously reported		Adjustments			As restated		As previously reported		Adjustments			As restated
Revenues	$	130,054		$	0		$	130,054		$	416,560	$	0		$	416,560	$	614,983	$	0		$	614,983
Costs and expenses:
Costs of goods sold		93,114			261			93,375			303,320		209			303,529		462,236		191			462,427
Research and development, net		14,714			1,146			15,860			24,834		1,061			25,895		37,456		961			38,417
Selling and marketing		19,419			1,729			21,148			31,077		1,625			32,702		33,523		2,441			35,964
General and administrative		4,852			725			5,577			6,904		726			7,630		12,143		673			12,816
In-process research and development write off		0			0			0			0		0			0		2,460		0			2,460
Total costs and expenses		132,099			3,861			135,960			366,135		3,621			369,756		547,818		4,266			552,084
Operating income (loss)		(2,045	)		(3,861	)		(5,906	)		50,425		(3,621	)		46,804		67,165		(4,266	)		62,899
Financial income, net		2,711			0			2,711			3,920		0			3,920		8,688		0			8,688
Other income, net		131			0			131			183		0			183		6,325		0			6,325
Income (loss) before taxes on income		797			(3,861	)		(3,064	)		54,528		(3,621	)		50,907		82,178		(4,266	)		77,912
Taxes on income		0			0			0			0		0			0		156		0			156
Income (loss) after taxes on income		797			(3,861	)		(3,064	)		54,528		(3,621	)		50,907		82,022		(4,266	)		77,756
Equity in losses of an affiliate		0			0			0			0		0			0		3,146		0			3,146
Minority interest in losses (earnings) of subsidiaries		(117	)		0			(117	)		30,378		0			30,378		26,236		0			26,236
Net income (loss)	$	914		$	(3,861	)	$	(2,947	)	$	24,150	$	(3,621	)	$	20,529	$	52,640	$	(4,266	)	$	48,374
Basic net earnings (loss) per share	$	0.03		$	(0.13	)	$	(0.10	)	$	0.71	$	(0.11	)	$	0.60	$	1.46	$	(0.12	)	$	1.34
Diluted net earnings (loss) per share	$	0.03		$	(0.13	)	$	(0.10	)	$	0.66	$	(0.10	)	$	0.56	$	1.30	$	(0.10	)	$	1.20
Weighted average number of Ordinary Shares used in
computing basic net earnings (loss) per share		28,178,228			0			28,178,228			34,195,642		0			34,195,642		36,164,979		0			36,164,979
Weighted average number of Ordinary Shares used in
computing diluted net earnings (loss) per share		30,513,485			(2,335,257	)		28,178,228			36,823,118		(475,177	)		36,347,941		41,156,678		(317,983	)		40,838,695