What do you define as blowout? Beating by 3 cents is OK to me. I really hate these whisper numbers. They donït have any credibilty and usually create unrealistic expectations.
The Report:
SanDisk Announces Record Revenue, Net Income and Earnings Per Share for First Quarter 2000
Business Wire - April 19, 2000 17:13
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 19, 2000--SanDisk Corporation (Nasdaq:SNDK), the world's largest supplier of flash memory data storage products, today announced record revenue for its quarter ended March 31, 2000. Total first
quarter revenues were $109.4 million, an increase of 148% from the first quarter of 1999 due primarily to increased sales of our CompactFlash and MultiMediaCard products. Product revenues were $97.2 million, an increase of 171% from $35.9 million compared to the same period last year. Revenues from licenses and royalties were $12.1 million, up 48% from $8.2 million in the first quarter of 1999. Net income for the quarter was $219.3 million and included a one-time after tax gain of $204 million from the previously announced conversion of SanDisk's investment in the United Silicon Inc. foundry into shares of United Microelectronics Corp. Excluding this one-time gain, net income for the current quarter was $15.3 million, up 256% compared to $4.3 million in the same period last year. In the first quarter, diluted earnings per share were $3.00, which included $2.79 per share from the gain on SanDisk's foundry investment. Diluted earnings per share excluding this one-time gain were $0.21 per share compared to $0.07 per share in the first quarter of 1999.
Total first quarter revenues increased sequentially by $26.6 million, or 32%, from total revenues of $82.8 million for the fourth quarter of 1999. Product revenues increased by 39%. Current quarter diluted earnings per share, net of the one-time gain related to the USIC merger, increased to $0.21 per share, up 40% compared to $0.15 per share for the fourth quarter of 1999.
"The first quarter was an outstanding quarter for SanDisk with total revenues reaching a record high, surpassing the $100 million mark for the first time," said Dr. Eli Harari, President and CEO of SanDisk. "Product gross margins improved by three percentage points to 30% and operating income reached a record level. New bookings significantly surpassed the previous quarter's record bookings and backlog at quarter-end was at an all time high.
"Sales growth improved sequentially in all geographic regions of the world, particularly in Japan and Europe. We experienced significant growth in unit sales of CompactFlash cards sold into digital cameras; MultiMediaCards sold into MP3 music players, smart phones and digital camcorders; and PC cards sold into telecommunication and industrial applications. MultiMediaCard unit sales more than doubled from the prior quarter. Retail sales were strong worldwide, continuing the trend started in the fourth quarter with holiday sales.
"Looking forward to the next several quarters, bookings visibility and new design win activity continue to be very good. Flash supply from the major vendors, including SanDisk, remains tight. Our primary focus in the near term is to work with our wafer foundry suppliers to further increase our shippable flash memory capacity through process shrinks and the qualification of additional fab capacity for second half shipments. We are optimistic about our continued growth in sales, product gross margins, and profits in fiscal 2000."
This news release contains forward looking statements including the Company's expectations for future product revenues and bookings, average selling prices, gross margin and profits that are based on current expectations and involve risks and uncertainties that may affect the Company's business, financial condition and results of
operations. In addition to the factors discussed above, other risks include: the availability of adequate supply of flash memory wafers from UMC in Taiwan and from other sources; the availability of other critical materials and components; the timely and successful manufacturing ramp up of new product generations and new foundries with acceptable yields and manufacturing costs; the timely introduction and acceptance of new consumer products that incorporate the Company's flash storage devices; future average selling price erosion due to excess capacity and price competition; the successful ramp up of assembly operations in China, Taiwan and the Philippines; seasonality of product sales; success in developing brand name preference and an efficient distribution system for SanDisk's products in the retail channel; economic conditions and exchange rates in Japan, the Pacific Rim and other geographic regions as they affect SanDisk's customers; the successful negotiation of a definitive agreement with Toshiba on the announced memo of understanding regarding joint development and manufacturing of advanced flash memories; the successful signing of a definitive agreement with Matsushita and Toshiba for the Secure Digital memory card; the successful development and launch of our Secure Digital cards products; and the other risks detailed from time to time in the Company's Securities and Exchange Commission filings and reports, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 1999. Future results may differ materially from those previously reported. The Company assumes no obligation to update the information in this release.
SanDisk Corporation, the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA.
SanDisk's first quarter 2000 conference call is scheduled for 2:00 p.m. PDT, Wednesday, April 19th. The phone number is 973/628-6885.
SanDisk's web site/home page address: sandisk.com
Note to Editors: CompactFlash and CF are trademarks of SanDisk Corporation.
SanDisk Corporation
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Three months ended
March 31,
2000 1999
---- ----
Revenues:
Product $ 97,249 $ 35,926
License and royalty 12,120 8,210
-------- --------
Total revenues 109,369 44,136
Cost of sales 67,758 26,509
-------- --------
Gross profits 41,611 17,627
Operating expenses:
Research and development 8,769 5,212
Sales and marketing 10,544 5,173
General and administrative 4,747 2,394
-------- --------
Total operating expenses 24,060 12,779
Operating income 17,551 4,848
Interest income 5,618 1,397
Gain on investment in foundry 344,168 --
Other income, net 434 207
-------- --------
Income before taxes 367,771 6,452
Provision for income taxes 148,500 2,129
-------- --------
Net income $219,271 $ 4,323
======== ========
Earnings per share
Basic $ 3.32 $ 0.08
Diluted $ 3.00 $ 0.07
Average common shares outstanding
Basic 66,095 53,534
Diluted 73,015 58,628
SanDisk Corporation
Condensed Consolidated Balance Sheets
(In thousands)
ASSETS March 31, December 31,
2000 1999
---------- ----------
Current Assets:
Cash and cash equivalents $ 107,558 $ 146,170
Short-term investments 566,912 311,049
Accounts receivable, net 78,884 52,434
Inventories 35,231 35,679
Deferred tax assets -- 17,000
Prepaid expenses and other current assets 6,259 6,058
---------- ----------
Total current assets 794,844 568,390
Property and equipment, net 31,919 31,788
Investment in foundry 197,688 51,208
Deposits and other assets 9,460 6,338
---------- ----------
Total Assets $1,033,911 $ 657,724
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 31,347 $ 30,734
Accrued payroll and related expenses 6,908 8,259
Other accrued liabilities 27,046 17,221
Deferred tax liability 60,074 --
Deferred revenue 32,941 29,383
---------- ----------
Total current liabilities 158,316 85,597
Deferred tax liability 68,317 --
---------- ----------
Total liabilities 226,633 85,597
Stockholders' Equity:
Common stock 530,204 524,131
Retained earnings 277,074 47,996
---------- ----------
Total stockholders' equity 807,278 572,127
Total Liabilities and
Stockholders' Equity $1,033,911 $ 657,724
========== ==========
CONTACT: SanDisk
Frank Calderoni, 408/542-0660 (CFO) |
