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SanDisk Q2 Revenue Rockets 84%

7/17/2003 01:54:00 PM Eastern

Sunnyvale, Calif. - Flash memory data storage card products maker SanDisk claimed the second three months of 2003 as its 'best quarter ever for revenues and operating earnings.'

Current market demand is being driven by strong sales of digital cameras as well as accelerating sales of camera cellphones, USB flash drives and numerous other new applications for NAND flash, said the company.

Second quarter revenue soared 84 percent, to $234.6 million, up from $127.7 million in the second three months of last year.

Net income in the second quarter, ended June 30, increased to $41.3 million, compared with $9 million in the year-ago period.

'Current demand for NAND flash is exceeding the total industry supply, resulting in a benign pricing environment as we enter the third quarter,' said Eli Harari, president/CEO. 'I am optimistic about our business prospects in the second half of the year.'

In other SanDisk second quarter highlights: Licensing and royalty revenue hit $20.6 million, up from $12 million in the second quarter a year earlier. Record units were sold and grew in excess of 100 percent year over year. Average price per megabyte sold declined 42 percent year over year.

Due to capacity restraints, SanDisk third quarter product revenue is expected to be capped at a level slightly higher than in the strong second quarter, when product revenue hit $214 million, up 85 percent over the $115.7 million reported in the year-ago period.

For the six months, SanDisk revenue rose to $409.1 million, up from $220.3 million year-on-year. Net income for the first half increased to $66.3 million, compared with $5.3 million in the first six months of 2002.