Second Quarter Above Estimates!
Even with "substantially increased" litigation expenses relating to Samsung
(Sandisk is going before the International Trade Commission to block Samsung exports),
Sandisk beat both the Goldman, Sachs and Morgan Stanley estimate of $0.13
Here is the press release:
( BW)(SANDISK)(SNDK) SanDisk Announces Record Revenue and Earnings
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 23, 1996--SanDisk
Corporation (NASDAQ:SNDK), the leading supplier of flash memory data
storage products, today announced results for its second quarter
ended June 30, 1996.
Second quarter revenues were $24.6 million, up 71% from revenues
of $14.4 million for the same period last year. Net income for the
quarter was $3.4 million, or $.14 per share, compared with
$2.9 million, or $.14 per share for the second quarter of 1995 on a
fully diluted basis. Shares used in computing fully diluted net
income per share for the current quarter include 3.7 million shares
issued at the Company's initial public offering in November 1995,
which were not outstanding at June 1995.
Revenues for the first six months were $45.3 million, an
increase of 70% over revenues of $26.7 million for the comparable
period last year. Net income for the first half of 1996 was
$6.5 million, or $.27 per share, compared with $4.0 million, or
$.20 per share, for the first half of 1995 on a fully diluted basis.
"We are very pleased with SanDisk's performance in the second
quarter," said Dr. Eli Harari, President and CEO of SanDisk.
"SanDisk shipped a record number of flash storage units and had the
highest quarterly revenues and profit in the Company's history.
Customer design-in activities continue at a solid pace in our four
target markets: industrial, communications, mobile computing and
consumer electronics.
"During the quarter, we continued to make good progress in all
areas of operations, double density (D2) product development and cost
reduction programs. The current quarter's sales results reflect our
continuing transition from products based on 16Mbit technology to 32
Mbit. Shipment of products based on 32Mbit technology increased to
75% of total unit shipments for the quarter, up from 59% last
quarter and none in the same period last year."
The consumer digital camera market, although still very small,
is experiencing accelerating product introductions and end user
acceptance. More than 20 new digital cameras are expected to be
introduced in the U.S., Japan and Europe in the next several
quarters. SanDisk, the world's largest supplier of flash cards for
digital cameras, is actively participating in this market and
expects to be a significant supplier of SanDisk CompactFlash (TM)
(CF(TM)) digital "film" to these "filmless" cameras. On July 22,
1996, FUJIFILM Microdevices and SanDisk announced that FUJIFILM
Microdevices will produce and ship Fuji CompactFlash starting in
September 1996 using SanDisk's memory technology.
Harari said, "The CompactFlash Association (CFA) held a
successful meeting in Tokyo in early July and increased its
membership to 49 member companies. We believe that the CFA is
gaining ground in establishing CF as the de facto global standard
for image storage in digital cameras.
"Despite the optimistic outlook for next year, new order
visibility in the near term is still uncertain because SanDisk's OEM
customers in these emerging markets have a difficult time accurately
gauging initial market demand for their new products employing
SanDisk's products."
Cindy Burgdorf, CFO and Senior Vice President of Finance and
Administration, said, "During the second quarter litigation costs
related to our International Trade Commission action against Samsung
Semiconductor increased substantially. We expect these litigation
costs to continue during the current quarter with ITC hearings to
commence in the second half of August."
The matters discussed in this news release contain forward
looking statements that are subject to certain risks and
uncertainties as described in the Company's reports filed with the
Securities and Exchange Commission. The timely acceptance of new
consumer products that incorporate our flash storage devices, as
well as future price competition may affect the Company's business,
financial condition and results of operations. Future results may
differ materially from those previously reported. The Company
assumes no obligation to update the information in this release.
SanDisk designs, manufactures and markets industry-standard,
solid-state data, image and audio storage products using
proprietary, high density flash memory and controller technology.
SanDisk ATA data storage PC cards are "plug and play" in almost all
desktop, notebook, subnotebook and handheld computers. SanDisk has
strategic alliances with Seagate Technology, Matsushita Electronic
Corp., NEC Corp. and LG Semicon. Seagate holds a 25 percent equity
stake in SanDisk. The Company is based in Sunnyvale.
-0-
Note To Editors: CompactFlash and CF are trademarks of SanDisk
Corporation. SanDisk's Web site/home page address:
sandisk.com
SanDisk Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Revenues $ 24,562 $ 14,404 $ 45,301 $ 26,707
Cost of sales 15,057 7,263 27,779 14,700
Gross profits 9,505 7,141 17,522 12,007
Operating expenses:
Research and
development 2,400 2,121 4,545 3,827
Sales and marketing 2,296 1,661 4,306 3,125
General and
administrative 1,937 820 3,301 1,596
Total operating
expenses 6,633 4,602 12,152 8,548
Operating income 2,872 2,539 5,370 3,459
Interest and other
income, net 770 466 1,521 747
Income before taxes 3,642 3,005 6,891 4,206
Provision for income
taxes 237 133 432 180
Net income $ 3,405 $ 2,872 $ 6,459 $ 4,026
Primary net income
per share $ 0.14 $ 0.52 $ 0.27 $ 0.72
Fully diluted net
income per share $ 0.14 $ 0.14 $ 0.27 $ 0.20
Shares used in
computing primary
net income per share 24,142 5,555 24,173 5,558
Shares used in
computing fully
diluted net income
per share 24,142 20,050 24,173 20,024
SanDisk Corporation
Condensed Consolidated Balance Sheets
(In thousands)
ASSETS June 30, 1996 Dec. 31, 1995
(unaudited)
Current assets:
Cash and cash equivalents $ 15,699 $ 27,255
Short-term investments 51,243 41,140
Accounts receivable, net 11,404 8,428
Inventories, net 12,368 10,411
Prepaid expenses and other
current assets 720 534
Total current assets 91,434 87,768
Property and equipment, net 7,231 4,254
Deposits and other assets 391 125
Total assets $ 99,056 $ 92,147
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,016 $ 9,053
Accrued payroll and
related expenses 2,209 1,946
Accrued warranty 646 917
Other accrued liabilities 1,970 1,847
Deferred revenue 5,167 5,905
Current obligations under
capital leases 11 98
Total current liabilities 20,019 19,766
Stockholders' equity:
Common stock 97,624 97,294
Accumulated deficit (18,587) (24,913)
Total stockholders' equity 79,037 72,381
Total liabilities and
stockholders' equity $ 99,056 $ 92,147
--30--kvc/sf jr/sf* sy/sf
CONTACT: SanDisk, Sunnyvale
Cindy Burgdorf, 408/542-0577 |
