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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: JesseK who wrote (15703)	10/18/2000 4:16:14 PM
From: Michael Gaudet	Read Replies (3) \| Respond to of 60323

SanDisk Announces Record Revenue and Operating Income for Third Quarter 2000 10/18 16:11 (BW) Story 2926 (SNDK) SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 18, 2000--SanDisk Corporation (Nasdaq:SNDK), the world's largest supplier of flash memory data storage products, today announced record revenue for its quarter ended September 30, 2000. Total third quarter revenues were $170.8 million, an increase of 153% from $67.5 million in the third quarter of 1999 due primarily to increased revenues from CompactFlash and MultiMediaCard products and higher license and royalty revenues. Product revenues were $151.8 million, an increase of 163% from $57.6 million for the same period last year. Revenues from licenses and royalties were $19.0 million, up 92% from $9.9 million in the third quarter of 1999. Net income for the quarter was $25.6 million, up 294% compared to $6.5 million in the same period last year. In the third quarter, diluted earnings per share were $0.35, compared to $0.11 per share in the third quarter of 1999. Total revenues for the third quarter increased sequentially by 19%. Product revenues increased 24% from $122.6 million for the second quarter of 2000. Revenues from licenses and royalties were 11% lower than the previous quarter due to the timing of recognizing revenues from our various license agreements. Third quarter diluted earnings per share increased to $0.35 per share, compared to $0.33 per share for the second quarter of 2000. "The third quarter was another excellent quarter for SanDisk with total revenues and operating income again reaching record highs," said Dr. Eli Harari, President and CEO of SanDisk. "New records were achieved in product revenues and number of units and megabytes sold. Total unit sales reached a record 4.7 million, up 57% from 3 million units in the prior quarter and total Flash memory megabytes sold increased sequentially by 41%. We experienced strong sequential growth in unit and megabyte sales for both our CompactFlash and MultiMediaCard product lines. Product gross margins improved to 33%, up from 31% in the previous quarter primarily due to lower manufacturing costs which were partially offset by moderate price declines. Availability of Flash memory from the three fabs at UMC and from our partnership with Toshiba improved significantly in the second half of the quarter. "Sales growth improved sequentially in North America, Europe and the Far East. OEM sales were robust and we are particularly encouraged by the growing strength in sales through our retail channel. "In the fourth quarter, we expect favorable market conditions for digital cameras, digital camcorders, smart phones and industrial applications, as well as strong holiday sales of Flash cards to consumers through retail stores. Usage of our products is increasing in a number of rapidly growing consumer and industrial applications, and we are therefore optimistic about continuing growth in our business in Q4 and in 2001."