Posts net income of $231m compared to net loss in the year ago quarter
SanDisk has reported revenue of $935m for the third quarter of 2009, an increase of 14% on a year-over-year basis and an increase of 28% on a sequential basis. Product revenue was $814m, up 18% year-over-year and up 33% sequentially. License and royalty revenue was $121m, down 8% year-over-year and up 1% sequentially.
For the quarter, operating profit was $240m compared to operating loss of $250m in the third quarter of 2008. Net income was $231m, or $0.99 per diluted share, compared to net loss of $166m, or $0.74 per share in the third quarter of 2008.
In the third quarter, SanDisk began shipping its 8GB and 16GB SDHC and 8GB Memory Stick PRO Duo cards using four bits per cell memory technology. The company also began shipping its Extreme Pro Compact Flash memory card with read and write speeds up to 90 megabytes per second and with capacities ranging from 16GB to 64GB.
Eli Harari, chairman and CEO of SanDisk, said: Our outstanding Q3 results reflect major gains in our OEM business with strong orders continuing into Q4.
Product gross margin improved dramatically, driven by favorable pricing and strong product cost reductions. We are encouraged by improved industry fundamentals and our increasingly diversified global markets, which bode well for further growth in Q4 and in 2010.