Press Releases


Jul 21, 2011

Reports best quarterly revenue in SanDisk's history

Milpitas, CA, July 21, 2011 - SanDisk Corporation (NASDAQ:SNDK), a global leader in flash memory storage solutions, today announced results for the second fiscal quarter ending July 3, 2011. Total second quarter revenue of $1.375 billion increased 17% on a year-over-year basis and increased 6% on a sequential basis. Second quarter net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $248 million, or $1.02 per diluted share, compared to net income of $258 million, or $1.08 per diluted share in the second quarter of fiscal 2010 and $224 million, or $0.92 per diluted share, in the first quarter of fiscal 2011.

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 convertible debts and related tax adjustments, second-quarter net income was $278 million, or $1.14 per diluted share, compared to net income of $258 million, or $1.08 per diluted share, in the second quarter of fiscal 2010 and net income of $251 million, or $1.03 per diluted share, in the first quarter of fiscal 2011. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.

"We delivered record quarterly revenue, driven by our broad product offerings and our well diversified Retail and OEM channels," said Sanjay Mehrotra, President and CEO, SanDisk. "Solid execution on product cost reductions enabled strong profitability. Our integration of Pliant Technology is progressing well and we are excited by our business prospects in the enterprise storage segment."


  • Total second quarter revenue was $1.375 billion, up 17% year-over-year and up 6% sequentially.
  • Total second quarter gross profit, product gross profit and operating income compared on a year-over-year and sequential basis are shown in the table below:
in millions of US$, except %
Non - GAAP
Q211 Q210 Q111 Q211 Q210 Q111
Total gross profit
% of total revenue
Product gross profit
% of product revenue
Operating income
% of total revenue
  • Cash flow from operations in the second quarter was $269 million and free cash flow(1) was ($232) million.
  • Total cash and cash equivalents and short and long-term marketable securities at the end of the second quarter of fiscal 2011 was $5.28 billion compared to $3.72 billion at the end of the second quarter of fiscal 2010 and $5.51 billion at the end of the first quarter of fiscal 2011.


  • SanDisk, along with its manufacturing partner Toshiba, announced the opening of Fab 5, their third 300-millimeter joint venture wafer fab in Yokkaichi, Japan.
  • SanDisk completed the acquisition of Pliant Technology, Inc., a leading developer of enterprise solid state drives. With the completion of the transaction, Pliant became SanDisk's Enterprise Storage Solutions business.
  • SanDisk expanded its Lightning® Enterprise Flash Drive family with six new 2.5-inch 6GB SAS (6 gigabits per second Serial Attached SCSI) models.
  • SanDisk augmented its embedded product line up with the announcement of the SanDisk iNAND Extreme™ embedded flash drives. Combined with the iNAND™ and iNAND Ultra™ products, the iNAND family of products now cover the needs of all mobile market segments, from feature phones to high-end tablets.

SanDisk's second quarter of fiscal 2011 conference call is scheduled for 2:00 P.M., Pacific Time, Thursday, July 21, 2011. The conference call will be webcast and can be accessed live, and throughout the quarter, at SanDisk's website at To participate in the call via telephone, the dial-in number is 719-325-2437 and the dial-in password is 3644989. 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 President and CEO, Sanjay Mehrotra, is scheduled to appear on CNBC's "Closing Bell with Maria Bartiromo," on Thursday, July 21, 2011, at approximately 1:15 P.M., Pacific Time.

This news release contains certain forward-looking statements, including statements about our business prospects and outlook in fiscal 2011, the integration of Pliant Technology, the expected benefits of the enterprise storage segment and our expectations regarding our business, 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:

  • we may not be able to effectively assimilate and integrate Pliant's operations, personnel, technologies, products and information systems on a timely basis or at all;
  • the integration of Pliant's business, personnel and operations may disrupt our ongoing business, distract our management and employees, harm our reputation and increase our expenses;
  • we may not be able to maintain and grow our enterprise storage customer relationships required to achieve our anticipated revenue and margins;
  • competitive pricing pressures, resulting in lower average selling prices and lower or negative product gross margins;
  • unpredictable or changing demand for our products, particularly for certain form factors, such as embedded flash memory, or capacities, or the mix of X2 and X3;
  • insufficient supply from captive flash memory sources, inability to obtain non-captive flash memory supply of the right product mix with adequate margins and quality in the time frame necessary to meet demand, or inability to realize a positive margin on non-captive purchases;
  • expansion of industry supply, including low grade supply useable in limited markets, creating excess market supply, causing our average selling prices to decline faster than our costs;
  • excess captive memory output or capacity which could result in write-downs for excess inventory, lower of cost or market charges, fixed costs associated with under-utilized capacity, or other consequences;
  • increased memory component and other costs as a result of currency exchange rate fluctuations to the U.S. dollar, particularly with respect to the Japanese yen;
  • lower than anticipated demand, including due to general economic weakness in our markets; and
  • the other risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our Quarterly Report on
    Form 10-Q for the fiscal quarter ended April 3, 2011.

(1) Free cash flow represents net cash provided by operating activities plus net cash used in investing activities less net purchases, sales and maturities of short- and long-term marketable securities.

SanDisk Corporation is a global leader in flash memory storage solutions, from research and development, product design and manufacturing to branding and distribution for OEM and retail channels. Since 1988, SanDisk's innovations in flash memory and storage system technologies have provided customers with new and transformational digital experiences. SanDisk's diverse product portfolio includes flash memory cards and embedded solutions used in smart phones, tablets, digital cameras, camcorders, digital media players and other consumer electronic devices, as well as USB flash drives and solid-state drives (SSD) for the computing market. SanDisk's products are used by consumers and enterprise customers around the world.

SanDisk is a Silicon Valley-based S&P 500 and Fortune 500 company, with more than half its sales outside the United States. For more information, visit

SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. Lightning is a U.S. registered trademark of SanDisk Corporation. iNAND, iNAND Ultra and iNAND Extreme are trademarks of SanDisk Corporation. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

Q2 2011 Financial Tables

Investor Contact: Media Contact:
Jay Iyer Lee Flanagin
(408) 801-2067 (408) 801-2463


SanDisk Press Contact