SansDisk announces first quarter 2010 Financial Results

On a non-GAAP basis, which excludes the impact of share-based compensation expense, amortization of acquisition-related intangible assets, non-cash economic interest expense associated with the cash-settled convertible note, and related tax adjustments and valuation allowance, first-quarter net income was $225 million, or $0.95 per diluted share, compared to a net loss of ($108) million, or ($0.48) per share, in the first quarter of 2009 and net income of $277 million, or $1.18 per diluted share, in the fourth quarter of 2009. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.

"We delivered SanDisk’s first ever billion dollar Q1 in total revenue. This performance was driven by several factors including our OEM business which grew to 63 percent of product revenues balancing out Q1 retail seasonality, and mobile product sales which more than doubled from this time last year. Total gross margin of 46 percent was achieved through a combination of a stable pricing environment, excellent cost reduction and our increasingly diversified customer base. With the year off to a record start, SanDisk is poised to benefit from flash memory demand in growth markets in 2010 and beyond," said Eli Harari, Chairman and CEO.