Sandisk Earnings (SNDK) Beats After Hours Trading

Date: 7/21/2011

Sandisk Earnings (SNDK) Beats After Hours Trading.

SanDisk Corporation (NASDAQ:SNDK - News), 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.

"SECOND QUARTER 2011 KEY FINANCIAL METRICSTotal second quarter revenue was $1.375 billion, up 17% year-over-year and up 6% sequentially.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.

OTHER HIGHLIGHTS

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.

CONFERENCE CALL

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 http://www.sandisk.com/IR. 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.