SUNNYVALE CA , Oct. 20 2005 - SanDisk® Corporation (NASDAQ:SNDK), the world's largest supplier of flash storage card products, today announced results for the third quarter ended October 2, 2005. Third quarter revenues increased 45% on a year-over-year basis to a record $590 million and increased 15% compared to the second quarter of 2005. Third quarter net income was $107.5 million compared to $54.1 million in the third quarter of 2004 and $70.5 million in the second quarter of 2005. Fully diluted earnings per share was $0.55, up 90% on a year-over-year basis and up 49% compared to the second quarter of 2005.
"We are very pleased with the outstanding results for our third quarter. Demand was strong throughout the quarter in our served markets. We are particularly encouraged by the excellent adoption of our cards in music-enabled mobile phones that require high capacity cards," said Eli Harari, SanDisk CEO. "Demand for NAND flash continues to grow globally and is currently outstripping industry-wide supply, particularly for high density NAND. Towards the end of the quarter we began first shipments of cards employing our cost effective 70-nanometer 8 gigabit NAND/MLC chip. Together with Toshiba we are accelerating the production ramp at Flash Partners' 300 millimeter fab to meet the anticipated strong demand for NAND flash in the fourth quarter and in 2006. We are optimistic about our business in the traditionally strong fourth quarter."
SanDisk Corporation President and Chief Executive Officer, Eli Harari, is scheduled to appear on CNBC's " Closing Bell with Maria Bartiromo", October 20, 2005 at approximately 1:15 p.m. PDT. Judy Bruner, SanDisk's Executive Vice President, Administration and CFO is scheduled to appear on Bloomberg TV's "Morning Call", October 21, 2005 at approximately 4:40 a.m. PDT.
SanDisk's third quarter 2005 conference call is scheduled for 2:00 p.m. PDT, Thursday, October 20, 2005. The conference call will be web cast by CCBN and can be accessed live, and throughout the quarter, at SanDisk's website at www.sandisk.com/IR and at www.streetevents.com for registered streetevents.com users. To participate in the call via telephone, the dial in number is (913) 312-1293. The call will also be available by telephone replay through Monday, October 24, 2005, by dialing (719) 457-0820 and entering the pass code 7280104. A copy of this press release will be filed with 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.
This news release contains certain forward-looking statements, including statements about our business outlook in the fourth quarter of 2005 and 2006, production schedules, market growth rates, market supply and demand, and scheduled appearances by our CEO and CFO that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect our business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others: slower than expected growth in market demand for our products or a slower adoption rate for these products in current and new markets that we are targeting, any interruption of or delay in supply from any of the semiconductor manufacturing or subcontracting facilities, including test and assembly facilities that supply products to us, the fact that no security technology can be guaranteed to be 100% secure, slower than expected expansion of our global sales channels, fluctuations in operating results, unexpected yield variances and longer than expected low yields and other possible delays related to our conversion to 70-nanometer NAND flash technology or the ramp-up of the new 300-millimeter flash fabrication facility, unexpected delays in the ramp-up of volume production of our new 70-nanometer 8 gigabit NAND/MLC chip, our inability to make additional planned smaller geometry conversions in a timely manner, future average selling price erosion that may be more severe than our expectations due to decreased demand or possible excess industry capacity of flash memory from ourselves as well as from existing suppliers or from new competitors that are planning to aggressively increase supply in the fourth quarter of 2005 or 2006, price increases from non-captive flash memory sources and third-party subcontractors, higher than expected operating expenses, higher than anticipated capital equipment expenditures, adverse global economic and geo-political conditions, including adverse currency exchange rates and acts of terror, the timely development, internal qualification and customer acceptance of new products that are based on 70-nanometer NAND technology, fluctuations in license and royalty revenues, business interruption due to earthquakes, hurricanes, pandemics or other natural disasters, particularly in areas in the Pacific Rim and Japan where we manufacture and assemble products, potential impact of high energy prices and other global events outside of our control which could adversely impact consumer confidence and hence reduce demand for our products, scheduled appearances by our executives could be cancelled or delayed by us or the network, and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, the Form 10-K for the year ended January 2, 2005 and our quarterly reports on Form 10-Q. Future results may differ materially from those previously reported. We do not intend to update the information contained in this release.
SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Sunnyvale, CA and has operations worldwide, with more than half its sales outside the U.S. www.sandisk.com
SanDisk and SanDisk Ultra, are trademarks of SanDisk Corporation, registered in the United States and other countries. Trusted Flash , Cruzer, SanDisk Extreme and iNAND are trademarks of SanDisk Corporation . Matrix is a registered trademark of Matrix Semiconductor, Inc.
SanDisk's web site/home page address: www.sandisk.com
Lori Barker Padon