SanDisk: Fiscal 2Q14 Financial Results

SanDisk Corporation announced results for the second quarter ended June 29, 2014.

Second quarter revenue of $1.63 billion increased 11% on a year-over-year basis and increased 8% sequentially.

On a GAAP basis, second quarter net income was $274 million, or $1.14 per share, compared to net income of $262 million, or $1.06 per share, in the second quarter of fiscal 2013 and $269 million, or $1.14 per share, in the first quarter of fiscal 2014.

On a non-GAAP basis, second quarter net income was $329 million, or $1.41 per share, compared to net income of $299 million, or $1.22 per share, in the second quarter of fiscal 2013 and net income of $330 million, or $1.44 per share, in the first quarter of fiscal 2014.

“We are pleased to deliver record second quarter revenue in both enterprise and client SSDs, as well as retail products,” said Sanjay Mehrotra, president and CEO, SanDisk. “SSD solutions comprised 29% of our second quarter revenue, compared to 16% in the year ago quarter, demonstrating strong progress in driving our strategic priorities. Our results position us well to deliver another record year in 2014.”

Other highlights

• In June, SanDisk announced the planned acquisition of Fusion-io for approximately $1.1 billion, net of cash assumed.
• During the second quarter, it introduced products in three product categories:
  • Within enterprise SSDs, it introduced the following new products: Optimus MAX SAS SSD, the industry’s first 4-terabyte SAS SSD; Lightning Ultra Gen. II 12Gb SAS high-endurance SSD capable of up to 25 full drive writes per day (DWPD), along with Lightning Ascend Gen. II and Lightning Eco Gen. II, designed for mixed-use and read-intensive applications
  • In client SSDs, SanDisk Extreme PRO, a high-performance client SSD with up to 1TB of capacity and 10-year warranty
  •  In mobile, iNAND Standard, an embedded flash drive solution for entry-level tablets and smartphones in China and other high-growth markets
• In April, SanDisk announced 15-nanometer 1Z technology, the most advanced NAND flash process node in the world on both two bits-per-cell (X2) and three bits-per-cell (X3) NAND flash memory architectures, with production planned to ramp in the second half of 2014.

SanDisk announced its third quarter 2014 dividend of $0.30 per share of common stock, payable on August 25, 2014 to shareholders of record as of the close of business on August 4, 2014.