10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

SanDisk Corp. Reports Operating Results (10-Q)

August 06, 2012 | About:

10qk

18 followers
SanDisk Corp. (SNDK) filed Quarterly Report for the period ended 2012-07-01.

Sandisk Corporation has a market cap of $10.08 billion; its shares were traded at around $41.48 with a P/E ratio of 13.4 and P/S ratio of 1.8.

Highlight of Business Operations:

The decrease in our product revenues for the three months ended July 1, 2012, compared to the three months ended July 3, 2011, was due primarily to a decline in average selling price per gigabyte of 52%, partially offset by an increase in gigabytes sold of 52%. The increase in our price decline in the second quarter of fiscal year 2012, compared to the second quarter of fiscal year 2011, was largely influenced by oversupply in the NAND industry. OEM product revenues in the three months ended July 1, 2012 decreased compared to the three months ended July 3, 2011, due primarily to decreased sales of embedded products and cards for mobile phones and tablets, partially offset by increased sales of SSDs for server and notebook markets. Our sales of embedded products were lower as our next generation of mobile embedded products were in various stages of development and qualification, and sales of mobile cards were lower due to a reduced rate of card bundling and bundling of lower capacity cards by mobile OEM customers. Retail product revenues in the three months ended July 1, 2012 increased compared to the three months ended July 3, 2011, due primarily to higher sales of cards for mobile devices and SSDs, partially offset by lower sales of cards for the imaging market.

The decrease in our product revenues for the six months ended July 1, 2012, compared to the six months ended July 3, 2011, was due primarily to a decline in average selling price per gigabyte of 48%, partially offset by an increase in gigabytes sold of 58%. The increase in our price decline in the first half of fiscal year 2012, compared to the first half of fiscal year 2011, was largely influenced by oversupply in the NAND industry. OEM product revenues in the six months ended July 1, 2012 decreased compared to the six months ended July 3, 2011, due primarily to decreased sales of embedded products and cards for mobile phones and tablets, partially offset by increased sales of SSDs for server and notebook markets. Retail product revenues

Our ten largest customers represented approximately 37% and 38% of our total revenues in the three and six months ended July 1, 2012, respectively, compared to 54% and 51% in the three and six months ended July 3, 2011, respectively. One customer represented 10% of our total revenues in each of the three and six months ended July 1, 2012 and 10% and 12% of our total revenues in the three and six months ended July 3, 2011, respectively.

The increase in our sales and marketing expense for the three months ended July 1, 2012, compared to the three months ended July 3, 2011, was due primarily to increased employee-related costs of $1.5 million and branding and merchandising costs of $2.5 million.

The increase in our sales and marketing expense for the six months ended July 1, 2012, compared to the six months ended July 3, 2011, was due primarily to increased employee-related costs of $3.5 million and branding and merchandising costs of $2.0 million.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK