SanDisk
Corporation (NASDAQ: SNDK),
a global leader in flash storage solutions, today announced results for
the first quarter ended March 30, 2014. First quarter revenue of
$1.51 billion increased 13 percent on a year-over-year basis and
decreased 12 percent sequentially.
On a GAAP(1) basis, first quarter net income was
$269 million, or $1.14 per diluted share, compared to net income of
$166 million, or $0.68 per diluted share, in the first quarter of fiscal
2013 and $338 million, or $1.45 per diluted share, in the fourth quarter
of fiscal 2013.
On a non-GAAP(2)(3) basis, first quarter net income was
$330 million, or $1.44 per diluted share, compared to net income of
$207 million, or $0.84 per diluted share, in the first quarter of fiscal
2013 and net income of $390 million, or $1.71 per diluted share, in the
fourth quarter of fiscal 2013. For reconciliation of non-GAAP to GAAP
results, see accompanying financial tables and footnotes.
“We delivered record first quarter results, driven by 61 percent growth
in our SSD revenue and strong retail performance,” said Sanjay Mehrotra,
president and chief executive officer of SanDisk. “We are excited by the
momentum we are building in our business as we continue to execute on
our growth initiatives.”
|
KEY FINANCIAL METRICS
|
|
Metric
|
|
GAAP(1)
|
|
Non-GAAP(2)
|
|
in millions, except percentages and per share amounts
|
|
Q1’14
|
|
Q1’13
|
|
Q4’13
|
|
Q1’14
|
|
Q1’13
|
|
Q4’13
|
|
Revenue
|
|
$1,512
|
|
$1,341
|
|
$1,728
|
|
$1,512
|
|
$1,341
|
|
$1,728
|
|
Gross Profit
|
|
$751
|
|
$532
|
|
$857
|
|
$774
|
|
$543
|
|
$880
|
|
percent of revenue
|
|
49.7%
|
|
39.6%
|
|
49.6%
|
|
51.2%
|
|
40.5%
|
|
50.9%
|
|
Operating Income
|
|
$425
|
|
$254
|
|
$507
|
|
$476
|
|
$288
|
|
$556
|
|
percent of revenue
|
|
28.1%
|
|
18.9%
|
|
29.4%
|
|
31.5%
|
|
21.5%
|
|
32.2%
|
|
Diluted EPS(3)
|
|
$1.14
|
|
$0.68
|
|
$1.45
|
|
$1.44
|
|
$0.84
|
|
$1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER HIGHLIGHTS
-
SanDisk announced today its second quarter 2014 dividend of $0.225 per
share of common stock, payable on May 27, 2014 to shareholders of
record as of the close of business on May 5, 2014.
-
SanDisk recently introduced innovative products in three categories:
-
CloudSpeed Extreme™, CloudSpeed Ultra™, CloudSpeed Ascend™ and
CloudSpeed Eco™ enterprise SATA SSDs for data center and cloud
computing storage solutions at unit capacities ranging from 100
gigabytes to 960 gigabytes
-
High performance iNAND Extreme™ embedded flash storage at
capacities up to 64 gigabytes for flagship Android based mobile
devices
-
128 gigabyte SanDisk Ultra® microSDXC™ UHS-1 card, the world’s
highest capacity mobile offering
CONFERENCE CALL
SanDisk’s first quarter of fiscal 2014 conference call is scheduled for
2:00 P.M., Pacific Daylight Time, Wednesday, April 16, 2014. The
conference call will be webcast and can be accessed live, and throughout
the quarter, at SanDisk’s website at www.sandisk.com/IR.
To participate in the call via telephone, the dial-in number is
719-325-4942 and the dial-in password is 5310508. 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 our 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, SanDisk’s quality, state-of-the-art solutions are at the heart of
many of the world's largest data centers, and embedded in advanced smart
phones, tablets and PCs. SanDisk’s consumer products are available at
hundreds of thousands of retail stores worldwide. For more information,
visit www.sandisk.com.
© 2014 SanDisk Corporation. All rights reserved. SanDisk and the SanDisk
logo are trademarks of SanDisk Corporation, registered in the United
States and other countries. Other brand names mentioned herein are for
identification purposes only and may be the trademarks of their
respective holder(s).
This news release contains certain forward-looking statements, including
our business prospects and our intended financial plans, including our
anticipated momentum for continued gains in 2014, our continued focus on
growth initiatives and our ability to execute on those initiatives, that
are based on our current expectations and involve numerous risks and
uncertainties that may cause these forward-looking statements to be
inaccurate. Risks that may cause these forward-looking statements to be
inaccurate include among others: the market demand for our products may
grow more slowly than our expectations or our products may not perform
as expected or be available when demanded by customers, or the other
risks detailed from time-to-time in our Securities and Exchange
Commission filings and reports, including, but not limited to, our most
recent annual report on Form 10-K. We do not intend to update the
information contained in this press release.
Risks that may cause these forward-looking statements to be inaccurate
include among others:
-
competitive pricing pressures, resulting in lower average selling
prices, lower revenues and lower gross margins;
-
excess or mismatched captive memory output or capacity, resulting in
lower average selling prices, financial charges and impairments, lower
gross margin or other consequences, or insufficient or mismatched
captive memory output or capacity, resulting in lost revenue and
growth opportunities;
-
weakness in demand in one or more of our product categories, such as
mobile embedded or SSDs, or adverse changes in our product or customer
mix;
-
potential delays in product development or lack of customer acceptance
and qualification of our solutions, including on new technology nodes,
particularly in our OEM product category, including, among others, our
embedded flash storage and SSD solutions;
-
the loss of, or reduction in orders from, one or more of our major
customers;
-
inability to develop, or unexpected difficulties or delays in
developing or ramping with acceptable yields, new technologies or the
failure of new technologies to effectively compete with those of our
competitors; and
-
the other risks detailed from time-to-time under the caption “Risk
Factors” and elsewhere in our Securities and Exchange Commission
filings and reports, including, but not limited to, our Annual Report
on Form 10-K for the fiscal year ended December 29, 2013.
|
(1)
|
|
GAAP represents U.S. Generally Accepted Accounting Principles.
|
|
(2)
|
|
Non-GAAP represents GAAP excluding the impact of share-based
compensation, amortization of acquisition-related intangible assets,
non-cash economic interest expense associated with our convertible
debt and related tax adjustments.
|
|
(3)
|
|
Non-GAAP diluted shares include the impact of offsetting shares from
the call option related to the 1.5% Sr. Convertible Notes due 2017
and the impact of share-based compensation.
|
|
|
|
|
|
SanDisk Corporation
|
|
Preliminary Condensed Consolidated Statements of Operations
|
|
(in thousands, except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
March 30, 2014
|
|
March 31, 2013
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,511,945
|
|
|
$
|
1,340,729
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
741,039
|
|
|
|
799,383
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
19,616
|
|
|
|
9,830
|
|
|
Total cost of revenue
|
|
|
760,655
|
|
|
|
809,213
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
751,290
|
|
|
|
531,516
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
|
198,829
|
|
|
|
171,125
|
|
|
Sales and marketing
|
|
|
76,972
|
|
|
|
59,127
|
|
|
General and administrative
|
|
|
48,669
|
|
|
|
45,104
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,646
|
|
|
|
2,369
|
|
|
Total operating expenses
|
|
|
326,116
|
|
|
|
277,725
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
425,174
|
|
|
|
253,791
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
(15,635
|
)
|
|
|
(19,897
|
)
|
|
Income before income taxes
|
|
|
409,539
|
|
|
|
233,894
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
140,591
|
|
|
|
67,665
|
|
|
Net income
|
|
$
|
268,948
|
|
|
$
|
166,229
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
Basic
|
|
$
|
1.19
|
|
|
$
|
0.69
|
|
|
Diluted
|
|
$
|
1.14
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
Shares used in computing net income per share:
|
|
|
|
|
|
Basic
|
|
|
225,845
|
|
|
|
242,519
|
|
|
Diluted
|
|
|
234,914
|
|
|
|
245,577
|
|
|
|
|
|
|
|
|
|
|
|
|
SanDisk Corporation
|
|
Reconciliation of Preliminary GAAP to Non-GAAP Operating Results (1)
|
|
(in thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
March 30, 2014
|
|
March 31, 2013
|
|
|
|
|
|
|
|
SUMMARY RECONCILIATION OF NET INCOME
|
|
|
|
|
|
GAAP NET INCOME
|
|
$
|
268,948
|
|
|
$
|
166,229
|
|
|
Share-based compensation (a)
|
|
|
30,030
|
|
|
|
21,734
|
|
|
Amortization of acquisition-related intangible assets (b)
|
|
|
21,262
|
|
|
|
12,199
|
|
|
Convertible debt interest (c)
|
|
|
20,964
|
|
|
|
23,577
|
|
|
Income tax adjustments (d)
|
|
|
(11,174
|
)
|
|
|
(16,842
|
)
|
|
NON-GAAP NET INCOME
|
|
$
|
330,030
|
|
|
$
|
206,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP COST OF REVENUE
|
|
$
|
760,655
|
|
|
$
|
809,213
|
|
|
Share-based compensation (a)
|
|
|
(2,610
|
)
|
|
|
(1,717
|
)
|
|
Amortization of acquisition-related intangible assets (b)
|
|
|
(19,616
|
)
|
|
|
(9,830
|
)
|
|
NON-GAAP COST OF REVENUE
|
|
$
|
738,429
|
|
|
$
|
797,666
|
|
|
|
|
|
|
|
|
GAAP GROSS PROFIT
|
|
$
|
751,290
|
|
|
$
|
531,516
|
|
|
Share-based compensation (a)
|
|
|
2,610
|
|
|
|
1,717
|
|
|
Amortization of acquisition-related intangible assets (b)
|
|
|
19,616
|
|
|
|
9,830
|
|
|
NON-GAAP GROSS PROFIT
|
|
$
|
773,516
|
|
|
$
|
543,063
|
|
|
|
|
|
|
|
|
GAAP RESEARCH AND DEVELOPMENT EXPENSES
|
|
$
|
198,829
|
|
|
$
|
171,125
|
|
|
Share-based compensation (a)
|
|
|
(15,675
|
)
|
|
|
(11,640
|
)
|
|
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
|
|
$
|
183,154
|
|
|
$
|
159,485
|
|
|
|
|
|
|
|
|
GAAP SALES AND MARKETING EXPENSES
|
|
$
|
76,972
|
|
|
$
|
59,127
|
|
|
Share-based compensation (a)
|
|
|
(6,257
|
)
|
|
|
(3,871
|
)
|
|
NON-GAAP SALES AND MARKETING EXPENSES
|
|
$
|
70,715
|
|
|
$
|
55,256
|
|
|
|
|
|
|
|
|
GAAP GENERAL AND ADMINISTRATIVE EXPENSES
|
|
$
|
48,669
|
|
|
$
|
45,104
|
|
|
Share-based compensation (a)
|
|
|
(5,488
|
)
|
|
|
(4,506
|
)
|
|
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES
|
|
$
|
43,181
|
|
|
$
|
40,598
|
|
|
|
|
|
|
|
|
GAAP TOTAL OPERATING EXPENSES
|
|
$
|
326,116
|
|
|
$
|
277,725
|
|
|
Share-based compensation (a)
|
|
|
(27,420
|
)
|
|
|
(20,017
|
)
|
|
Amortization of acquisition-related intangible assets (b)
|
|
|
(1,646
|
)
|
|
|
(2,369
|
)
|
|
NON-GAAP TOTAL OPERATING EXPENSES
|
|
$
|
297,050
|
|
|
$
|
255,339
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME
|
|
$
|
425,174
|
|
|
$
|
253,791
|
|
|
Cost of revenue adjustments (a) (b)
|
|
|
22,226
|
|
|
|
11,547
|
|
|
Operating expense adjustments (a) (b)
|
|
|
29,066
|
|
|
|
22,386
|
|
|
NON-GAAP OPERATING INCOME
|
|
$
|
476,466
|
|
|
$
|
287,724
|
|
|
|
|
|
|
|
|
GAAP OTHER INCOME (EXPENSE), NET
|
|
$
|
(15,635
|
)
|
|
$
|
(19,897
|
)
|
|
Convertible debt interest (c)
|
|
|
20,964
|
|
|
|
23,577
|
|
|
NON-GAAP OTHER INCOME (EXPENSE), NET
|
|
$
|
5,329
|
|
|
$
|
3,680
|
|
|
|
|
|
|
|
|
GAAP NET INCOME
|
|
$
|
268,948
|
|
|
$
|
166,229
|
|
|
Cost of revenue adjustments (a) (b)
|
|
|
22,226
|
|
|
|
11,547
|
|
|
Operating expense adjustments (a) (b)
|
|
|
29,066
|
|
|
|
22,386
|
|
|
Other income (expense) adjustments (c)
|
|
|
20,964
|
|
|
|
23,577
|
|
|
Income tax adjustments (d)
|
|
|
(11,174
|
)
|
|
|
(16,842
|
)
|
|
NON-GAAP NET INCOME
|
|
$
|
330,030
|
|
|
$
|
206,897
|
|
|
|
|
|
|
|
|
Diluted net income per share:
|
|
|
|
|
|
GAAP
|
|
$
|
1.14
|
|
|
$
|
0.68
|
|
|
Non-GAAP
|
|
$
|
1.44
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
Shares used in computing diluted net income per share:
|
|
|
|
|
|
GAAP
|
|
|
234,914
|
|
|
|
245,577
|
|
|
Non-GAAP (e)
|
|
|
229,508
|
|
|
|
245,596
|
|
|
|
|
|
|
|
|
SanDisk Corporation
|
|
Reconciliation of Preliminary GAAP to Non-GAAP Operating Results (1)
|
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
March 30, 2014
|
|
March 31, 2013
|
|
SUMMARY RECONCILIATION OF DILUTED SHARES
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
234,914
|
|
|
245,577
|
|
Adjustments for share-based compensation
|
|
296
|
|
|
19
|
|
Offsetting shares from call option
|
|
(5,702
|
)
|
|
―
|
|
Non-GAAP (e)
|
|
229,508
|
|
|
245,596
|
|
(1)
|
|
To supplement our condensed consolidated financial statements
presented in accordance with generally accepted accounting
principles (GAAP), we use non-GAAP measures of operating results,
net income and net income per share, which are adjusted from results
based on GAAP to exclude certain expenses, gains and losses. These
non-GAAP financial measures are provided to enhance the user's
overall understanding of our current financial performance and our
prospects for the future. Specifically, we believe the non-GAAP
results provide useful information to both management and investors
as these non-GAAP results exclude certain expenses, gains and losses
that we believe are not indicative of our core operating results and
because they are consistent with the financial models and estimates
published by many analysts who follow us. For example, because the
non-GAAP results exclude the expenses we recorded for share-based
compensation, amortization of acquisition-related intangible assets
related to acquisitions of Pliant Technology, Inc. in May 2011,
FlashSoft Corporation in February 2012, Schooner Information
Technology, Inc. in June 2012 and SMART Storage Systems in August
2013, non-cash economic interest expense associated with the
convertible debt and related tax adjustments, we believe the
inclusion of non-GAAP financial measures provides consistency in our
financial reporting. In addition, our non-GAAP diluted shares
include the impact of the call option which, when exercised, will
offset the issuance of dilutive shares from the 1.5% Sr. Convertible
Notes due 2017, while the GAAP diluted shares exclude the
anti-dilutive impact of this call option. These non-GAAP results are
some of the primary indicators management uses for assessing our
performance, allocating resources and planning and forecasting
future periods. Further, management uses non-GAAP information that
excludes certain non-cash charges, such as amortization of
acquisition-related intangible assets, share-based compensation,
non-cash economic interest expense associated with the convertible
debt and related tax adjustments, as these non-GAAP charges do not
reflect the cash operating results of the business or the ongoing
results. These measures should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results. These non-GAAP
measures may be different than the non-GAAP measures used by other
companies.
|
|
|
|
|
|
(a)
|
|
Share-based compensation expense.
|
|
|
|
|
|
(b)
|
|
Amortization of acquisition-related intangible assets, primarily
core technology, developed technology, customer relationships and
trademarks related to the acquisitions of Pliant Technology, Inc.
(May 2011), FlashSoft Corporation (February 2012), Schooner
Information Technology, Inc. (June 2012) and SMART Storage Systems
(August 2013).
|
|
|
|
|
|
(c)
|
|
Incremental interest expense relating to the non-cash economic
interest expense associated with the 1% Sr. Convertible Notes due
2013, 1.5% Sr. Convertible Notes due 2017, and 0.5% Sr. Convertible
Notes due 2020.
|
|
|
|
|
|
(d)
|
|
Income taxes associated with certain non-GAAP to GAAP adjustments,
and the effects of one-time income tax adjustments recorded in a
specific quarter for GAAP purposes are reflected on a forecast basis
in our non-GAAP tax rate.
|
|
|
|
|
|
(e)
|
|
Non-GAAP diluted shares include the impact of offsetting shares from
the call option related to the 1.5% Sr. Convertible Notes due 2017
and the impact of share-based compensation.
|
|
|
|
|
|
SanDisk Corporation
|
|
Preliminary Condensed Consolidated Balance Sheets
|
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30, 2014
|
|
December 29, 2013
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,116,938
|
|
|
$
|
986,246
|
|
|
Short-term marketable securities
|
|
|
1,692,801
|
|
|
|
1,919,611
|
|
|
Accounts receivable, net
|
|
|
596,669
|
|
|
|
682,809
|
|
|
Inventory
|
|
|
799,883
|
|
|
|
756,975
|
|
|
Deferred taxes
|
|
|
124,200
|
|
|
|
138,192
|
|
|
Other current assets
|
|
|
177,532
|
|
|
|
166,885
|
|
|
Total current assets
|
|
|
4,508,023
|
|
|
|
4,650,718
|
|
|
|
|
|
|
|
|
Long-term marketable securities
|
|
|
3,508,081
|
|
|
|
3,179,471
|
|
|
Property and equipment, net
|
|
|
639,653
|
|
|
|
655,794
|
|
|
Notes receivable and investments in Flash Ventures
|
|
|
1,159,264
|
|
|
|
1,134,620
|
|
|
Deferred taxes
|
|
|
136,991
|
|
|
|
134,669
|
|
|
Goodwill
|
|
|
317,930
|
|
|
|
318,111
|
|
|
Intangible assets, net
|
|
|
221,099
|
|
|
|
247,904
|
|
|
Other non-current assets
|
|
|
95,330
|
|
|
|
167,430
|
|
|
Total assets
|
|
$
|
10,586,371
|
|
|
$
|
10,488,717
|
|
|
|
|
|
|
|
|
LIABILITIES, CONVERTIBLE SHORT-TERM DEBT CONVERSION OBLIGATION
AND EQUITY
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable trade
|
|
$
|
259,204
|
|
|
$
|
282,582
|
|
|
Accounts payable to related parties
|
|
|
160,536
|
|
|
|
146,964
|
|
|
Convertible short-term debt (1)
|
|
|
840,180
|
|
|
|
—
|
|
|
Other current accrued liabilities
|
|
|
349,126
|
|
|
|
509,732
|
|
|
Deferred income on shipments to distributors and retailers and
deferred revenue
|
|
|
269,349
|
|
|
|
291,302
|
|
|
Total current liabilities
|
|
|
1,878,395
|
|
|
|
1,230,580
|
|
|
|
|
|
|
|
|
Convertible long-term debt
|
|
|
1,166,497
|
|
|
|
1,985,363
|
|
|
Non-current liabilities
|
|
|
311,334
|
|
|
|
307,083
|
|
|
Total liabilities
|
|
|
3,356,226
|
|
|
|
3,523,026
|
|
|
|
|
|
|
|
|
Convertible short-term debt conversion obligation (1)
|
|
|
159,820
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
|
4,961,893
|
|
|
|
5,040,242
|
|
|
Retained earnings
|
|
|
2,150,583
|
|
|
|
2,004,089
|
|
|
Accumulated other comprehensive loss
|
|
|
(40,038
|
)
|
|
|
(76,459
|
)
|
|
Total stockholders' equity
|
|
|
7,072,438
|
|
|
|
6,967,872
|
|
|
Non-controlling interests
|
|
|
(2,113
|
)
|
|
|
(2,181
|
)
|
|
Total equity
|
|
|
7,070,325
|
|
|
|
6,965,691
|
|
|
Total liabilities, convertible short-term debt conversion
obligation and equity
|
|
$
|
10,586,371
|
|
|
$
|
10,488,717
|
|
|
|
|
|
|
|
|
(1)
|
|
The 1.5% Convertible Senior Notes due 2017 became convertible on
April 1, 2014, and will remain convertible through June 30, 2014, as
a result of the Company’s common stock price exceeding the trigger
price set forth in the indenture for at least 20 trading days during
the 30 consecutive trading-day period ended March 31, 2014.
Accordingly, the carrying value of the notes was reclassified from
long-term to short-term debt as of March 30, 2014, and will remain
so while the notes are convertible. The convertible short-term debt
conversion obligation represents the difference between the carrying
value of the convertible debt and the principal amount due in cash
upon conversion.
|
|
|
|
|
|
SanDisk Corporation
|
|
Preliminary Condensed Consolidated Statements of Cash Flows
|
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
March 30, 2014
|
|
March 31, 2013
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
268,948
|
|
|
$
|
166,229
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Deferred taxes
|
|
|
6,951
|
|
|
|
53,151
|
|
|
Depreciation
|
|
|
60,089
|
|
|
|
53,017
|
|
|
Amortization
|
|
|
72,598
|
|
|
|
65,151
|
|
|
Provision for doubtful accounts
|
|
|
(547
|
)
|
|
|
(197
|
)
|
|
Share-based compensation expense
|
|
|
30,030
|
|
|
|
21,734
|
|
|
Excess tax benefit from share-based plans
|
|
|
(17,460
|
)
|
|
|
(8,450
|
)
|
|
Impairment and other
|
|
―
|
|
|
(3,173
|
)
|
|
Other non-operating
|
|
|
1,020
|
|
|
|
136
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable, net
|
|
|
86,689
|
|
|
|
186,726
|
|
|
Inventory
|
|
|
(42,117
|
)
|
|
|
16,776
|
|
|
Other assets
|
|
|
54,547
|
|
|
|
(20,156
|
)
|
|
Accounts payable trade
|
|
|
(36,546
|
)
|
|
|
2,898
|
|
|
Accounts payable to related parties
|
|
|
13,572
|
|
|
|
(37,901
|
)
|
|
Other liabilities
|
|
|
(140,128
|
)
|
|
|
(22,290
|
)
|
|
Total adjustments
|
|
|
88,698
|
|
|
|
307,422
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
357,646
|
|
|
|
473,651
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of short and long-term marketable securities
|
|
|
(1,266,899
|
)
|
|
|
(1,150,347
|
)
|
|
Proceeds from sales of short and long-term marketable securities
|
|
|
1,015,605
|
|
|
|
513,354
|
|
|
Proceeds from maturities of short and long-term marketable securities
|
|
|
129,620
|
|
|
|
293,205
|
|
|
Acquisition of property and equipment, net
|
|
|
(34,517
|
)
|
|
|
(48,352
|
)
|
|
Notes receivable issuances to Flash Ventures
|
|
|
(24,352
|
)
|
|
―
|
|
Notes receivable proceeds from Flash Ventures
|
|
|
24,352
|
|
|
|
53,586
|
|
|
Purchased technology and other assets
|
|
|
(869
|
)
|
|
|
(237
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
2,368
|
|
|
|
(142
|
)
|
|
Net cash used in investing activities
|
|
|
(154,692
|
)
|
|
|
(338,933
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Distribution to non-controlling interests
|
|
―
|
|
|
(87
|
)
|
|
Proceeds from employee stock programs
|
|
|
51,882
|
|
|
|
93,075
|
|
|
Excess tax benefit from share-based plans
|
|
|
17,460
|
|
|
|
8,450
|
|
|
Dividends paid
|
|
|
(51,560
|
)
|
|
―
|
|
Share repurchase program
|
|
|
(90,019
|
)
|
|
|
(89,621
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(72,237
|
)
|
|
|
11,817
|
|
|
|
|
|
|
|
|
Effect of changes in foreign currency exchange rates on cash
|
|
|
(25
|
)
|
|
|
6,105
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
130,692
|
|
|
|
152,640
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
986,246
|
|
|
|
995,470
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
1,116,938
|
|
|
$
|
1,148,110
|
|
Copyright Business Wire 2014