Fourth quarter net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $340 million, or earnings of $1.45 per diluted share, compared to net loss of ($1.76) billion, or ($7.78) per share, in the fourth quarter of fiscal 2008 and net income of $231 million, or $0.99 per diluted share, in the third quarter of fiscal 2009. The GAAP net income for fiscal 2009 was $415 million, or $1.79 per diluted share, compared to net loss of ($1.99) billion, or ($8.82) per share, in fiscal 2008.
On a non-GAAP basis, which excludes the impact of acquisition-related charges, share-based compensation expense, impairment of goodwill and acquisition-related intangible assets, non-cash economic interest expense associated with the cash-settled convertible note, and related tax adjustments and valuation allowance, fourth-quarter net income was $277 million, or $1.18 per diluted share, compared to a net loss of ($359) million, or ($1.59) per share, in the fourth quarter of fiscal 2008 and net income of $176 million, or $0.75 per diluted share, in the third quarter of fiscal 2009. The non-GAAP net income for fiscal 2009 was $427 million, or $1.84 per diluted share, compared to net loss of ($466) million, or ($2.07) per share, in fiscal 2008. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.
"We delivered a terrific fourth quarter in 2009 – our best performance ever in product revenue, profit and cash flow. These results demonstrate the success of the actions that we took this past year, including restructuring our captive supply and diversifying our OEM and retail channels that resulted in unit sales growth of 55 percent and gigabyte growth of 100 percent compared to the fourth quarter of 2008. Product gross margin was sharply higher due to continued strong cost reductions and stable pricing," said Eli Harari, Chairman and CEO, SanDisk. "In 2010, we look forward to solid growth in our markets with a continued emphasis on profitability."