Delivers Strong Growth in Revenue & Profits, $220 Million in Free Cash Flow
Milpitas, CA, October 20, 2009 - SanDisk Corporation (NASDAQ:SNDK), the global leader in flash memory cards, today announced results for the third quarter ended September 27, 2009. Total third quarter revenue of $935 million increased 14% on a year-over-year basis and increased 28% on a sequential basis. Net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $231 million, or $0.99 per diluted share, compared to GAAP net loss of ($166) million or ($0.74) per share in the third quarter of 2008 and GAAP net income of $53 million, or $0.23 per diluted share in the second quarter of 2009.
On a non-GAAP basis, which excludes the impact of acquisition-related charges, share-based compensation expense, and non-cash economic interest expense associated with the cash-settled convertible note, third-quarter net income was $176 million, or $0.75 per diluted share, compared to a net loss of ($132) million or ($0.59) per share in the third quarter of 2008 and net income of $83 million or $0.36 per diluted share in the second quarter of 2009. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.
"Our outstanding Q3 results reflect major gains in our OEM business with strong orders continuing into Q4. Product gross margin improved dramatically, driven by favorable pricing and strong product cost reductions. We are encouraged by improved industry fundamentals and our increasingly diversified global markets, which bode well for further growth in Q4 and in 2010," said Eli Harari, Chairman and CEO, SanDisk.
THIRD QUARTER 2009 METRICS & HIGHLIGHTS
OTHER RECENT KEY ANNOUNCEMENTS
SanDisk's third quarter 2009 conference call is scheduled for 2:00 P.M., Pacific Time, Tuesday, October 20, 2009, with SanDisk CEO Eli Harari joining the call from SanDisk's Shanghai facility. 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 913-312-0702 and the dial-in password is 8643791. 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.
1 1 GB = 1 billion bytes.
2 Based on internal testing; performance may vary depending upon host device.
SanDisk Corporation President and Chief Operating Officer, Sanjay Mehrotra, is scheduled to appear on CNBC's "Closing Bell with Maria Bartiromo," on October 20, 2009, at approximately 1:10 P.M., Pacific Time.
SanDisk Corporation Executive Vice-President Administration and Chief Financial Officer, Judy Bruner, is scheduled to appear on Bloomberg Television on October 21, 2009, at approximately 6:35 A.M., Pacific Time.
A complete reconciliation between GAAP and non-GAAP information referred to in this release is provided in the attached tables.
FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking statements, including statements about our business prospects and outlook, our expectations for the fourth fiscal quarter of 2009, and fiscal 2010, and our expectations regarding our business, including our OEM business, that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect our business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others:
Future results may differ materially from those previously reported. We do not intend to update the information contained in this release.
SanDisk Corporation, the inventor and world's largest supplier of flash storage cards, is a global leader in flash memory - 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 (www.sandisk.com/corporate) is a Silicon Valley-based S&P 500 company with more than half its sales outside the United States.
SanDisk, the SanDisk logo, Sansa, CompactFlash and SanDisk Extreme are trademarks of SanDisk Corporation, registered in the United States and other countries. slotRadio is a trademark of SanDisk Corporation. slotMusic is a trademark of SLOTmedia Group LLC. SDHC and microSD are trademarks of SD-3C LLC. Memory Stick PRO Duo is a trademark of Sony Corporation. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
SanDisk Supporting Documents (.pdf)