Press Releases

SANDISK ANNOUNCES FOURTH QUARTER & FULL YEAR 2010 FINANCIAL RESULTS

gen 27, 2011

Milpitas, CA, January 27, 2011 - SanDisk Corporation (NASDAQ:SNDK), the global leader in flash memory cards, today announced results for the fourth quarter and fiscal year ended January 2, 2011. Total fourth quarter revenue of $1.33 billion increased 7% on a year-over-year basis and increased 8% on a sequential basis. Total revenue for fiscal 2010 of $4.83 billion increased 35% from $3.57 billion in fiscal 2009.

Fourth quarter net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $485 million, or $2.01 per diluted share, compared to net income of $340 million, or $1.45 per diluted share, in the fourth quarter of fiscal 2009 and $322 million, or $1.34 per diluted share, in the third quarter of fiscal 2010. The GAAP net income for fiscal 2010 was $1.30 billion, or $5.44 per diluted share, compared to net income of $415 million, or $1.79 per diluted share, in fiscal 2009. The fourth quarter of fiscal 2010 includes a $203 million tax provision benefit related to the release of net deferred tax asset valuation allowances.

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 debt, related tax adjustments and tax valuation allowances, fourth-quarter net income was $307 million, or $1.27 per diluted share, compared to net income of $277 million, or $1.18 per diluted share, in the fourth quarter of fiscal 2009 and net income of $311 million, or $1.30 per diluted share, in the third quarter of fiscal 2010. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.

"A strong Q4 capped an exceptional year for SanDisk with record results. Our growth was driven by accelerating momentum in the mobile embedded business and gains in APAC markets and customers," said Sanjay Mehrotra, President and CEO, SanDisk. "The market environment continues to be robust and we expect 2011 to be another strong year for SanDisk with smartphones and tablets continuing to lead our growth."

FOURTH QUARTER 2010 KEY FINANCIAL METRICS

  • Total fourth quarter revenue was $1.33 billion, up 7% year-over-year and up 8% sequentially.
  • Product revenue was $1.24 billion, up 9% for both year-over-year and sequentially.
  • License and royalty revenue was $87 million, down 13% year-over-year and down 10% sequentially.
  • Total fourth quarter gross profit, product gross profit and operating income compared on a year-over-year and sequential basis are shown in the table below:
Metric
in millions of US$, except %
GAAP Non - GAAP
Q410 Q409 Q310 Q410 Q409 Q310
Total gross profit
% of total revenue
$576
43.4%
$600
48.4%
$639
51.8%
$580
43.7%
$609
49.0%
$644
52.2%
Product gross profit
% of product revenue
$490
39.5%
$501
43.9%
$543
47.7%
$494
39.8%
$509
44.6%
$548
48.1%
Operating income
% of total revenue
$357
26.9%
$376
30.3%
$432
35.0%
$385
29.0%
$417
33.6%
$457
37.0%

 

  • Cash flow from operations in the fourth quarter was $359 million and free cash flow was $254 million.
  • Total cash and cash equivalents and short and long-term marketable securities at the end of the fourth quarter of fiscal 2010 was $5.3 billion compared to $3.0 billion at the end of the fourth quarter of fiscal 2009 and $5.1 billion at the end of the third quarter of fiscal 2010.
  • Average price per gigabyte sold in the fourth quarter declined 30% on a year-over-year basis and declined 15% sequentially.


FULL YEAR FISCAL 2010 KEY FINANCIAL METRICS

Metric
in millions of US$, except %
GAAP Non - GAAP
2010 2009 2010 2009
Total gross profit
% of total revenue
$2,262
46.9%
$1,285
36.0%
$2,280
47.2%
$1,310
36.7%
Product gross profit
% of product revenue
$1,898
42.5%
$872
27.6%
$1,917
42.9%
$897
28.4%
Operating income
% of total revenue
$1,462
30.3%
$519
14.6%
$1,553
32.2%
$629
17.6%

CONFERENCE CALL
SanDisk's fourth quarter of fiscal 2010 conference call is scheduled for 2:00 P.M., Pacific Time, Thursday, January 27, 2011. The conference call will be webcast and can be accessed live, and throughout the quarter, at SanDisk's website at www.sandisk.com/IR. To participate in the call via telephone, the dial-in number is 719-325-4933 and the dial-in password is 4272305.  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.

SCHEDULED INTERVIEW
SanDisk Corporation President and CEO, Sanjay Mehrotra, is scheduled to appear on CNBC's "Closing Bell with Maria Bartiromo," on Thursday, January 27, 2011, at approximately 1:20 P.M., Pacific Time.

FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking statements, including statements about our business prospects and outlook in fiscal 2011, and our expectations regarding our business, including expected growth in flash memory demand for embedded and other flash memory products for use in mobile devices, such as smartphones and tablets, 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:

  • 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;
  • 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;
  • 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; and
  • 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 third quarter of fiscal 2010.

ABOUT SANDISK
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 are trademarks of SanDisk Corporation, registered in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

SanDisk Supporting Document (.pdf)

Q4 2010 Financial Tables

Contact:
Investor Contact: Media Contact:
Jay Iyer Mike Wong
(408) 801-2067 (408) 801-1240

 

REFERENTI PER I MEDIA

Referente SanDisk per la stampa

press@sandisk.com