SanDisk Announces Second Quarter 2015 Results

MILPITAS, Calif., July 22, 2015 – 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.

KEY FINANCIAL RESULTS

• SanDisk announced the availability of its new Fusion ioMemory 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 EcoTM 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.

CONFERENCE CALL

SanDisks second quarter 2015 conference call is scheduled for today at 2:00 P.M., Pacific Time, Wednesday, July 22, 2015. The conference call will be on live webcast and can be accessed from SanDisks investor relations website at www.sandisk.com/IR. To dial into the live call, please dial 719- 325-4800 and provide the password 3235993. Participants are encouraged to dial in at least 10 minutes before the call commences. Supplemental information and slides that accompany the web broadcast will be available on the SanDisks investor relations website at www.sandisk.com/IR after the prepared remarks. A copy of this press release will be furnished to the Securities and Exchange Commission on a current report on Form 8-K and will be posted to SanDisks website prior to the conference call.

ABOUT SANDISK

SanDisk Corporation (NASDAQ: SNDK), a Fortune 500 and S&P 500 company, is a global leader in flash storage solutions. For more than 25 years, SanDisk has expanded the possibilities of storage, providing trusted and innovative products that have transformed the electronics industry. Today, SanDisks quality, state-of-the-art solutions are at the heart of many of the world’s largest data centers, and embedded in advanced smartphones, tablets and PCs. SanDisks consumer products are available at hundreds of thousands of retail stores worldwide. For more information, visit www.sandisk.com.

All statements made in this news release are made only as of the date of this release. We undertake no obligation to update the information in this release in the event facts or circumstances change after the date of this release.

⁽¹⁾ GAAP represents U.S. Generally Accepted Accounting Principles.

⁽²⁾ Non-GAAP represents GAAP excluding the impact of share-based compensation, amortization and impairment of acquisition-related intangible assets, non-cash economic interest expense associated with the convertible senior notes, non-cash change in fair value of the liability component of the convertible senior notes due to the conversion of a portion of the 1.5% Convertible Senior Notes due 2017 and related tax adjustments.

⁽³⁾ Non-GAAP shares are adjusted for the impact of expensing share-based compensation and include the impact of offsetting shares from the call options related to the convertible senior notes.

⁽⁴⁾ Net cash is defined as cash, cash equivalents, short and long-term marketable securities, minus the aggregate principal amount of the outstanding convertible senior notes.

⁽⁵⁾ Free cash flow is defined as net cash provided by operating activities less (a) acquisition of property and equipment, net, and (b) net investment and notes receivables activity with Flash Ventures.

* 1GB=1,000,000,000 bytes. Actual user storage may be less.

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