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SanDisk Q3 Revenue Soars 99%

10/15/2003 12:49:00 PM Eastern

Third quarter revenue grew 99 percent, hitting $281.4 million, up from $141.1 million in the same three months in 2002. Net income for the third quarter, ended Sept. 28, climbed to $50.6 million, compared with $11.3 million in the year-ago period.

Product gross margin for the third quarter at SanDisk increased 300 basis points over the preceding three months, hitting 35 percent, compared with the second quarter 32 percent. Total gross margin reached 40 percent, including license and royalty revenues.

For the nine months, total SanDisk revenue increased to $628.9 million, from $334.2 million in the same time frame in 2002. Net income for the nine months soared to $116.8 million, compared with $16.6 million year-on-year.

Looking ahead, SanDisk expects its fourth quarter will be seasonally strong in retail, and that its primary challenge will be to meet consumer demand for its products. Total 12-month revenue is forecast to exceed $1 billion, while product gross margin is expected to be in the range of 32 percent to 36 percent, reflecting a continuing benign pricing environment and lower product costs.