SanDisk Corp. reported revenue of $1.75 billion in the third quarter of 2014, up 7 percent on a year-over-year basis and up 7 percent sequentially.
SanDisk reported net income of $263 million on a GAAP basis in the third quarter, or $1.09 per share, compared to net income of $277 million in the third quarter of last year and $274 million in the previous quarter.
Growth came from the increase in revenue coming from SanDisk’s enterprise solid state drive (SSD) revenue that is expected to continue to be a strong point for the coming moving forward.
“We expect our enterprise SSD revenue to surpass $1 billion in 2015 a year ahead of our previously stated timeline,” said Sanjay Mehrotra, president and CEO of SanDisk, during an earnings conference call. “Our enterprise SSD revenue grew strongly on a year-over-year basis during the third quarter driven by our established leadership position and our growing presence in enterprise SATA and driven by a partial quarter of Fusion-io Solutions.”
The acquisition of Fusion-io took place in late July as SanDisk bought the flash-based PCIe hardware company for about $1.1 billion. Mehrotra said the business garnered from Fusion-io performed in-line with what it expected post-acquisition.
“Our plan is to continue to support a majority of the Fusion-io products on non-captive NAND in 2015,” Mehrotra said. “We have made excellent progress in integrating Fusion-io into SanDisk. To best realize the capabilities, talents and scale of the two teams we have decide to accelerate the combination of the legacy Sandisk’s enterprise storage solutions growth and the newly added Fusion-io team by forming one enterprise storage organization team.”
SanDisk’s commercial channel revenue grew 13 percent year-over-year while its retail channel revenue was down 2 percent. Commercial product revenue came mostly from SSD both enterprise and client side while the decrease in revenue in the retail channel came a decline in the camera market for SD cards partially offset by a growth in demand for MicroSD cards, SanDisk said. Sequentially, commercial revenue grew 8 percent driven by embedded growth and retail revenue grew 5 percent on the back of back-to-school USB sales and mobile cards.
SanDisk SSD revenue grew 48 percent year-over-year with the strongest growth coming from enterprise SSD, the company said. Sequentially, SSD revenue grew only 1 percent as a result of demand timing from certain customers and SanDisk’s own supply allocation decisions. Embedded revenue was down 16 percent year-over-year and up 30 percent sequentially. Removable products revenue was flat on a yearly basis but up 1 percent sequentially.