Milpitas, CA, July 22, 2010 - SanDisk Corporation (NASDAQ:SNDK), the global leader in flash memory cards, today announced results for the second quarter ended July 4, 2010. Total second quarter revenue of $1.18 billion increased 61% on a year-over-year basis and increased 9% on a sequential basis. Net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $258 million, or $1.08 per diluted share, compared to GAAP net income of $53 million, or $0.23 per diluted share, in the second quarter of 2009 and GAAP net income of $235 million, or $0.99 per diluted share, in the first quarter of 2010.
On a non-GAAP basis, which excludes the impact of share-based compensation expense, amortization of acquisition-related intangible assets, non-cash economic interest expense associated with the cash-settled convertible note, and related tax adjustments and valuation allowance, second-quarter net income was $258 million, or $1.08 per diluted share, compared to net income of $83 million, or $0.36 per diluted share, in the second quarter of 2009 and net income of $225 million, or $0.95 per diluted share, in the first quarter of 2010. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.
"SanDisk delivered another excellent quarter, with OEM demand driving record unit and gigabytes sold. We achieved 47% total gross margin, due to cost reductions and a stable pricing environment. We exited the quarter with a record high cash balance of $3.7 billion or $2.6 billion net of debt. For the second half of the year, demand from our diversified customer base is very strong. We expect our recent announcement of our Fab 5 joint venture with Toshiba to allow us to meet our customers' growing demand for flash in the coming years", said Eli Harari, Chairman and CEO of SanDisk.
SECOND QUARTER 2010 METRICS & HIGHLIGHTS
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OTHER RECENT KEY ANNOUNCEMENTS
SanDisk's second quarter 2010 conference call is scheduled for 2:00 P.M., Pacific Time, Thursday, July 22, 2010. The conference call will be webcast and can be accessed live, and throughout the quarter, at SanDisk's website at http://www.sandisk.com/IR. To participate in the call via telephone, the dial-in number is 719-325-4819 and the dial-in password is 8237874. A copy of this press release will be furnished to the Securities and Exchange Commission on a current report on Form 8-K and will be posted to our website prior to the conference call.
SanDisk Corporation Chairman and Chief Executive Officer, Eli Harari, is scheduled to appear on CNBC's "Power Lunch," on Friday, July 23, 2010, at approximately 10:20 A.M., Pacific Time.
FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking statements, including statements about our business prospects and outlook, our expectations for fiscal year 2010 and our expectations regarding our business, including expected growth in flash memory demand in 2010 and beyond, our ability to obtain supply to meet that demand and our customer base, that are based on our current expectations and are subject to numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly harm our business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others:
FORWARD LOOKING STATEMENTS REGARDING EXECUTIVE TRANSITION
This press release contains certain forward-looking statements, including statements about the retirement of Mr. Harari, the promotion of Mr. Mehrotra, the appointment of Mr. Marks and the expected performance of SanDisk, particularly in the quotes included above that are based on SanDisk's current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate, including, among others: that either Mr. Mehrotra or Mr. Marks is no longer with the Company or otherwise does not assume their new positions with SanDisk on the effective time of such appointment, that this leadership transition is not successful, or that SanDisk does not perform as expected and the other risks detailed from time-to-time in SanDisk's Securities and Exchange Commission filings and reports, including, but not limited to, under the caption "Risk Factors" and elsewhere in SanDisk's most recent annual report on Form 10-K and SanDisk's subsequent quarterly reports on Form 10-Q. The parties do not intend to update the information contained in this release.
SanDisk Corporation is the global leader in flash memory cards, from research, manufacturing and product design to consumer branding and retail distribution. SanDisk's product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders; digital audio/video players; USB flash drives for consumers and the enterprise; embedded memory for mobile devices; and solid state drives for computers. SanDisk is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.
SanDisk and the SanDisk logo and are trademarks of SanDisk Corporation, registered in the United States and other countries. SD is a trademark of SD-3C LLC. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
SanDisk Supporting Document (.pdf)
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