Stock Update (NASDAQ:SNDK): SanDisk Corporation Announces Second Quarter 2015 Results

SanDisk Corporation (NASDAQ:SNDK), a global leader in flash storage solutions, today announced results for the second quarter ended June 28, 2015. Second quarter revenue of $1.24 billion decreased 24 percent on a year-over-year basis and decreased 7 percent sequentially.

On a GAAP(1) basis, second quarter net income was $81 million, or $0.38 per share, compared to net income of $274 million, or $1.14 per share, in the second quarter of 2014 and $39 million, or $0.17 per share, in the first quarter of 2015.

On a non-GAAP(2)(3) basis, second quarter net income was $136 million, or $0.66 per share, compared to net income of $329 million, or $1.41 per share, in the second quarter of 2014 and net income of $134 million, or $0.62 per share, in the first quarter of 2015. For a reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.

“During the second quarter, we strengthened our portfolio with several new product launches in both the retail and commercial channels,” said Sanjay Mehrotra, president and chief executive officer, SanDisk. “We are making steady progress on all operational fronts, and remain focused on enhancing our financial performance.”


(in millions, except percentages and per share amounts) GAAP (1) Non-GAAP (2)
Q2’15 Q2’14 Q1’15 Q2’15 Q2’14 Q1’15
Revenue $1,237 $1,634 $1,332 $1,237 $1,634 $1,332
Gross profit $484 $760 $545 $518 $783 $574
percent of revenue 39% 46% 41% 42% 48% 43%
Operating income $104 $417 $57 $191 $472 $198
percent of revenue 8% 25% 4% 15% 29% 15%
EPS (3) $0.38 $1.14 $0.17 $0.66 $1.41 $0.62


(in millions) Q2’15 Q2’14 Q1’15
Cash, cash equivalents, short and long-term marketable securities $ 4,003 $ 6,249 $ 4,394
Less aggregate principal amount of convertible senior notes outstanding (2,497 ) (2,500 ) (2,497 )
Net cash (4) $ 1,506 $ 3,749 $ 1,897
Net cash provided by operating activities $ 29 $ 241 $ 309
Less acquisition of property and equipment, net (96 ) (44 ) (98 )
Change in investment and notes receivable activity with Flash Ventures 15 (11 )
Free cash flow (5) $ (52 ) $ 197 $ 200


  • SanDisk announced the availability of its new Fusion ioMemoryTM PCIe application accelerators which utilize SanDisk NAND and dramatically improve performance compared to the previous generation ioDrive®2, enabling datacenter consolidation and lower total cost of ownership. These application accelerators also feature updated Virtual Storage Layer (VSL) data access acceleration software.
  • SanDisk announced its new CloudSpeed Eco™ Gen. II enterprise SATA SSD for cloud service providers, with up to 2TB* capacity, based on 15 nanometer NAND flash. The CloudSpeed Eco Gen. II delivers greater storage density with three times the streaming bandwidth versus hard disk drives (HDDs).
  • SanDisk announced the SanDisk Extreme® 500 and the SanDisk Extreme® 900 families of high-performance portable SSDs at capacities up to 480GB and 1.92TB respectively. These SSDs feature significantly faster transfer speeds than a portable hard drive.
  • SanDisk introduced the new SanDisk Z400s SSD, a cost-effective 15 nanometer-based SSD designed to replace HDDs in computing platforms and embedded applications, such as digital signage, security surveillance, and point of sale or kiosk environments.
  • SanDisk announced today a third quarter 2015 dividend of $0.30 per share of common stock, payable on August 25, 2015 to stockholders of record as of the close of business on August 3, 2015. (Original Source)

Shares of SanDisk Corp closed today at $53.875, down $1.605 or 2.89%. SNDK has a 1-year high of $106.64 and a 1-year low of $53.18. The stock’s 50-day moving average is $61.07 and its 200-day moving average is $71.59.

On the ratings front, SanDisk has been the subject of a number of recent research reports. In a report issued on July 20, Nomura analyst Romit Shah upgraded SNDK to Hold, with a price target of $50, which reflects a potential downside of -9.0% from last closing price. Separately, on the same day, Wedbush’s Betsy Van Hees reiterated a Hold rating on the stock and has a price target of $50.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Romit Shah and Betsy Van Hees have a total average return of 7.5% and 13.2% respectively. Shah has a success rate of 54.3% and is ranked #663 out of 3711 analysts, while Hees has a success rate of 50.0% and is ranked #446.

The street is mostly Neutral on SNDK stock. Out of 19 analysts who cover the stock, 9 suggest a Hold rating , 8 suggest a Buy and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $69.92, which implies an upside of 27.2% from current levels.

SanDisk Corp designs, develops and manufactures data storage solutions using flash memory, proprietary controller and firmware technologies.

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