July 20, 2007 – SanDisk Corporation yesterday announced its second quarter results. The company reported a second quarter revenue of $827 million, up 15 percent from the same time last year. Its net income dropped from $96 to $28 million year-over-year.
“Demand for our products in the retail channel recovered nicely in the second quarter, resulting in record megabyte sales. In particular, SanDisk’s growing strength in Europe and other international markets doubled our international unit sales compared to last year,” said Eli Harari, chairman and CEO, in a press release.
Product revenue also increased 13 percent to $720 million from the second quarter of 2006, but the price per megabyte for memory cards decreased 65 percent on a year-over-year basis, and 26 percent over the first quarter of this year.
“Product gross margins stabilized despite substantial price reductions in the second quarter,” Harari said in a press release. “We expect product gross margins to improve gradually in the second half of the year, driven by more moderate price declines resulting from an expected improvement in the balance between demand and supply, declining manufacturing costs and strength in our income from royalties.”
