Exhibit 99.1
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SanDisk Corporation
601 McCarthy Boulevard
Milpitas, CA 95035-7932
Phone: 408-801-1000
Fax: 408-801-8657
CONTACT: | Investor Contacts: | Media Contact: | ||
Lori Barker Padon | Mike Wong | |||
(408) 801-1384 | (408) 801-1240 | |||
Jay Iyer | ||||
(408) 801-2067 |
SANDISK ANNOUNCES SECOND QUARTER RESULTS
Milpitas, CA, July 19, 2007 — SanDisk®Corporation (NASDAQ:SNDK), the world’s largest supplier of flash storage card products, today announced results for the second quarter ended July 1, 2007. Second quarter revenue increased 15% on a year-over-year basis to $827 million and net income in accordance with U.S. Generally Accepted Accounting Principles (GAAP) was $28 million, or $0.12 per diluted share, compared to GAAP net income of $96 million, or $0.47 per diluted share, in the second quarter of 2006.
Excluding the impact of acquisition-related charges, stock compensation expense and the related tax effect, second quarter non-GAAP net income was $72 million, or $0.30 per diluted share, compared to second quarter 2006 non-GAAP net income of $118 million, or $0.58 per diluted share.
“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. “Product gross margins stabilized despite substantial price reductions in the second quarter. 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. The flurry of new Flash memory enabled, highly innovative consumer and mobile products coming from our customers, our competitors, and ourselves, we believe, will fuel strong demand for our products in the second half of 2007 and in 2008. Our strategic investments in leading edge technology and IP, captive low-cost manufacturing capacity, product innovation and global retail channels position us exceptionally well to profit in the expected industry growth cycle.”
Key Metrics and Highlights
• | Product revenue was $720 million in the second quarter, up 13% year-over-year. | |
• | License and royalty revenue for the second quarter was $107 million, up 30% year-over-year. | |
• | Total megabytes sold in the second quarter increased 217% on a year-over-year basis and 50% from the first quarter of 2007. | |
• | Average price per megabyte sold declined 65% on a year-over-year basis and 26% sequentially. | |
• | Average retail card capacity in the second quarter was 1475 megabytes, up 95% from the second quarter of 2006 and up 20% sequentially. | |
• | GAAP product gross margin in the second quarter was 16.2%, compared to 32.4% in the second quarter of 2006. | |
• | Non-GAAP product gross margin for the second quarter was 19.0% compared to 32.8% in the second quarter of 2006 and up from 18.5% in the first quarter of 2007. | |
• | GAAP operating income for the second quarter of 2007 was $14 million compared to GAAP operating income of $129 million in the second quarter of 2006. | |
• | Non-GAAP operating income was $74 million, or 9% of revenue, compared to non-GAAP operating income of $159 million, or 22% of revenue in the second quarter of 2006 and up from 6% in the first quarter of 2007. | |
• | SanDisk expanded its line of Solid State Drives (SSD) to include the 2.5 inch 64-gigabyte (GB) SSD targeted as a high performance, lower total cost of ownership replacement for hard drives used in notebook PCs. | |
• | IBM selected SanDisk’s 2.5 inch SSD for storage within the BladeCenter®HS21 XM, which features higher processing performance at lower power levels than traditional hard drives. | |
• | SanDisk and Microsoft signed an agreement for a next-generation software and hardware solution to place application programs and personal customization on USB flash drives and flash cards. | |
• | SanDisk introduced two corporate USB flash drives with mandatory security and optional centralized control. | |
• | Three new high capacity mobile cards were announced to meet consumer’s growing demand for handset storage: 6 and 8-GB1microSD™ High Capacity cards and a 4-GB Memory Stick Micro™ (M2). | |
• | SanDisk launched its highest speed Extreme Compact Flash® and SD™ Plus memory cards and its fastest USB drive in a marketing partnership with Ducati featuring speed and performance. |
Scheduled Interviews
SanDisk Corporation Chairman and Chief Executive Officer, Eli Harari, is scheduled to appear on CNBC’s “Closing Bell with Maria Bartiromo,” on July 19, 2007 at approximately 1:15 p.m. PDT. Judy Bruner, SanDisk’s Executive Vice President, Administration and CFO, is scheduled to appear on Bloomberg TV’s “Bloomberg On The Markets,” July 20, 2007 beginning at approximately 9:30 a.m. PDT.
Conference Call
SanDisk’s second quarter 2007 conference call is scheduled for 2:00 p.m. PDT, Thursday, July 19, 2007. The conference call will be webcast by CCBN and can be accessed live, and throughout the quarter, at SanDisk’s website at www.sandisk.com/IR and at www.streetevents.com for registered streetevents.com users. To participate in the call via telephone, the dial-in number is (913) 312-1292. The dial-in password is 4682584. 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.
A complete reconciliation between GAAP and non-GAAP information referred to in this release is provided in the attached tables.
Forward-Looking Statements
This news release contains certain forward-looking statements, including statements about our business prospects and outlook, anticipated increased demand for our consumer and OEM products, including our mobile products, expected industry-wide growth, future profits, an increase in product gross margins, improved balance between market supply and demand, manufacturing cost reductions, strong royalty income, expected technology transitions and the timing and cost benefits thereof, our planned investments in advanced technologies, products, markets and our brand, and scheduled appearances by our Chairman and CEO and our CFO that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect our business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others:
• | slower than expected growth in market demand for our products, for example, in our solid state drives and our MP3 players, or a slower adoption rate for our products in current and new markets that we are targeting, | ||
• | future average selling price erosion that may be more severe than our expectations due to decreased demand or excess industry capacity of flash memory from ourselves as well as from existing suppliers or from new competitors, | ||
• | any interruption of or delay in supply from any of the semiconductor manufacturing or subcontracting facilities, including test and assembly facilities that supply products to us, | ||
• | slower than expected expansion of our global sales channels, | ||
• | fluctuations in operating results, unexpected yield variances and delays related to our conversion to 56-nanometer NAND flash technology or the ramp-up of the 300mm flash fabrication facility, | ||
• | our inability to make additional planned smaller geometry conversions in a timely manner, | ||
• | less than expected growth in the average megabyte capacity per card, | ||
• | higher than expected operating expenses, | ||
• | higher than anticipated capital equipment expenditures, | ||
• | fluctuations in license and royalty revenues, | ||
• | business interruption due to earthquakes, hurricanes or other natural disasters, particularly in areas in the Pacific Rim and Japan where we manufacture and assemble products, | ||
• | risks related to our acquisition of msystems, including that we may not realize the expected benefits of the acquisition due to integration challenges or that we may incur substantial costs or other damages associated with pending or future litigation related to the merger or costs or damages related to msystems’ prior stock option grant practices, | ||
• | adverse results in litigation affecting us, | ||
• | the risk that scheduled appearances by our executives could be cancelled or delayed by us or the network, and | ||
• | 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 31, 2006 and our Forms 10-Q. |
Future results may differ materially from those previously reported. We do not intend to update the information contained in this release.
About SanDisk
SanDisk is the original inventor of flash storage cards and is the world’s largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Milpitas, CA and has operations worldwide with more than half its sales outside the U.S.
1 | 1 gigabyte (GB) = 1 billion bytes. |
www.sandisk.com
SanDisk, the SanDisk logo, and Compact Flash are trademarks of SanDisk Corporation, registered in the United States and other countries. SD, microSD and SDHC are trademarks. Memory Stick Micro is a trademark of Sony Corporation. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
SanDisk Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts, unaudited)
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts, unaudited)
Three months ended | Six months ended | |||||||||||||||
July 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||||
Revenues: | ||||||||||||||||
Product | $ | 719,991 | $ | 636,675 | $ | 1,409,348 | $ | 1,174,403 | ||||||||
License and royalty | 107,041 | 82,510 | 203,770 | 168,042 | ||||||||||||
Total revenues | 827,032 | 719,185 | 1,613,118 | 1,342,445 | ||||||||||||
Cost of product revenues | 588,736 | 430,177 | 1,158,824 | 815,044 | ||||||||||||
Amortization of acquisition-related intangible assets | 14,583 | — | 35,645 | — | ||||||||||||
Total cost of product revenues | 603,319 | 430,177 | 1,194,469 | 815,044 | ||||||||||||
Gross profits | 223,713 | 289,008 | 418,649 | 527,401 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 101,185 | 73,785 | 196,825 | 137,547 | ||||||||||||
Sales and marketing | 60,517 | 45,067 | 116,723 | 88,442 | ||||||||||||
General and administrative | 41,165 | 37,182 | 88,156 | 67,198 | ||||||||||||
Restructuring | 212 | — | 6,728 | — | ||||||||||||
Write-off of acquired in-process technology | — | — | — | 39,600 | ||||||||||||
Amortization of acquisition-related intangible assets | 7,050 | 4,432 | 16,150 | 8,147 | ||||||||||||
Total operating expenses | 210,129 | 160,466 | 424,582 | 340,934 | ||||||||||||
Operating income (loss) | 13,584 | 128,542 | (5,933 | ) | 186,467 | |||||||||||
Total other income | 38,556 | 22,013 | 74,815 | 40,477 | ||||||||||||
Income before taxes | 52,140 | 150,555 | 68,882 | 226,944 | ||||||||||||
Provision for income taxes | 23,605 | 54,914 | 35,762 | 96,188 | ||||||||||||
Income after taxes | 28,535 | 95,641 | 33,120 | 130,756 | ||||||||||||
Minority interest | 51 | — | 5,211 | — | ||||||||||||
Net income | $ | 28,484 | $ | 95,641 | $ | 27,909 | $ | 130,756 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.12 | $ | 0.49 | $ | 0.12 | $ | 0.67 | ||||||||
Diluted | $ | 0.12 | $ | 0.47 | $ | 0.12 | $ | 0.65 | ||||||||
Shares used in computing net income per share: | ||||||||||||||||
Basic | 227,959 | 195,527 | 227,707 | 194,302 | ||||||||||||
Diluted | 236,036 | 202,980 | 235,951 | 202,522 |
SanDisk Corporation
Reconciliation of GAAP to Non-GAAP Operating Results (*)
(In thousands, except per share amounts, unaudited)
Reconciliation of GAAP to Non-GAAP Operating Results (*)
(In thousands, except per share amounts, unaudited)
Three months ended | Six months ended | |||||||||||||||
July 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||||
SUMMARY RECONCILIATION OF NET INCOME | ||||||||||||||||
GAAP NET INCOME | $ | 28,484 | $ | 95,641 | $ | 27,909 | $ | 130,756 | ||||||||
Adjustments: | ||||||||||||||||
Share-based compensation (a) | 36,971 | 25,870 | 68,190 | 44,656 | ||||||||||||
Amortization of acquisition-related intangible assets (c) | 21,633 | 4,432 | 51,795 | 8,147 | ||||||||||||
Inventory step-up expense related to msystems acquisition (d) | 2,119 | — | 7,066 | — | ||||||||||||
Write-off of acquired in-process technology (b) | — | — | — | 39,600 | ||||||||||||
Income tax adjustments (e) | (17,364 | ) | (8,385 | ) | (38,283 | ) | (15,583 | ) | ||||||||
NON-GAAP NET INCOME | $ | 71,843 | $ | 117,558 | $ | 116,677 | $ | 207,576 | ||||||||
GAAP COST OF PRODUCT REVENUES | $ | 603,319 | $ | 430,177 | $ | 1,194,469 | $ | 815,044 | ||||||||
Share-based compensation (a) | (3,307 | ) | (2,478 | ) | (6,521 | ) | (2,478 | ) | ||||||||
Amortization of acquisition-related intangible assets (c) | (14,583 | ) | — | (35,645 | ) | — | ||||||||||
Inventory step-up expense related to msystems acquisition (d) | (2,119 | ) | — | (7,066 | ) | — | ||||||||||
NON-GAAP COST OF PRODUCT REVENUES | $ | 583,310 | $ | 427,699 | $ | 1,145,237 | $ | 812,566 | ||||||||
GAAP GROSS PROFIT | $ | 223,713 | $ | 289,008 | $ | 418,649 | $ | 527,401 | ||||||||
Share-based compensation (a) | 3,307 | 2,478 | 6,521 | 2,478 | ||||||||||||
Amortization of acquisition-related intangible assets (c) | 14,583 | — | 35,645 | — | ||||||||||||
Inventory step-up expense related to msystems acquisition (d) | 2,119 | — | 7,066 | — | ||||||||||||
NON-GAAP GROSS PROFIT | $ | 243,722 | $ | 291,486 | $ | 467,881 | $ | 529,879 | ||||||||
GAAP RESEARCH AND DEVELOPMENT EXPENSES | $ | 101,185 | $ | 73,785 | $ | 196,825 | $ | 137,547 | ||||||||
Share-based compensation (a) | (13,013 | ) | (10,421 | ) | (25,700 | ) | (19,207 | ) | ||||||||
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES | $ | 88,172 | $ | 63,364 | $ | 171,125 | $ | 118,340 | ||||||||
GAAP SALES AND MARKETING EXPENSES | $ | 60,517 | $ | 45,067 | $ | 116,723 | $ | 88,442 | ||||||||
Share-based compensation (a) | (10,361 | ) | (5,125 | ) | (17,284 | ) | (9,164 | ) | ||||||||
NON-GAAP SALES AND MARKETING EXPENSES | $ | 50,156 | $ | 39,942 | $ | 99,439 | $ | 79,278 | ||||||||
GAAP GENERAL AND ADMINISTRATIVE EXPENSES | $ | 41,165 | $ | 37,182 | $ | 88,156 | $ | 67,198 | ||||||||
Share-based compensation (a) | (10,290 | ) | (7,846 | ) | (18,685 | ) | (13,807 | ) | ||||||||
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES | $ | 30,875 | $ | 29,336 | $ | 69,471 | $ | 53,391 | ||||||||
GAAP TOTAL OPERATING EXPENSES | $ | 210,129 | $ | 160,466 | $ | 424,582 | $ | 340,934 | ||||||||
Share-based compensation (a) | (33,664 | ) | (23,392 | ) | (61,669 | ) | (42,178 | ) | ||||||||
Write-off of acquired in-process technology (b) | — | — | — | (39,600 | ) | |||||||||||
Amortization of acquisition-related intangible assets (c) | (7,050 | ) | (4,432 | ) | (16,150 | ) | (8,147 | ) | ||||||||
NON-GAAP TOTAL OPERATING EXPENSES | $ | 169,415 | $ | 132,642 | $ | 346,763 | $ | 251,009 | ||||||||
GAAP OPERATING INCOME (LOSS) | $ | 13,584 | $ | 128,542 | $ | (5,933 | ) | $ | 186,467 | |||||||
Cost of goods sold adjustments (a) (c) (d) | 20,009 | 2,478 | 49,232 | 2,478 | ||||||||||||
Operating expense adjustments (a) (b) (c) | 40,714 | 27,824 | 77,819 | 89,925 | ||||||||||||
NON-GAAP OPERATING INCOME | $ | 74,307 | $ | 158,844 | $ | 121,118 | $ | 278,870 | ||||||||
GAAP NET INCOME | $ | 28,484 | $ | 95,641 | $ | 27,909 | $ | 130,755 | ||||||||
Cost of goods sold adjustments (a) (c) (d) | 20,009 | 2,478 | 49,232 | 2,478 | ||||||||||||
Operating expense adjustments (a) (b) (c) | 40,714 | 27,824 | 77,819 | 89,925 | ||||||||||||
Income tax adjustments (e) | (17,364 | ) | (8,385 | ) | (38,283 | ) | (15,583 | ) | ||||||||
NON-GAAP NET INCOME | $ | 71,843 | $ | 117,558 | $ | 116,677 | $ | 207,575 | ||||||||
Diluted net income per share: | ||||||||||||||||
GAAP | $ | 0.12 | $ | 0.47 | $ | 0.12 | $ | 0.65 | ||||||||
Non-GAAP | $ | 0.30 | $ | 0.58 | $ | 0.49 | $ | 1.02 | ||||||||
Shares used in computing diluted net income per share: | ||||||||||||||||
GAAP | 236,036 | 202,980 | 235,951 | 202,522 | ||||||||||||
Non-GAAP | 236,855 | 204,126 | 236,649 | 203,716 |
SanDisk Corporation
Reconciliation of GAAP to Non-GAAP Operating Results (*)
Reconciliation of GAAP to Non-GAAP Operating Results (*)
(*) | To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), we use non-GAAP measures of operating results, net income and earnings 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 it is consistent with the financial models and estimates published by many analysts who follow the Company. For example, because the non-GAAP results exclude the expenses we recorded for share-based compensation in accordance with SFAS 123(R) effective January 2, 2006 and the acquisition of Matrix Semiconductor, Inc. in January 2006 and msystems Ltd. in November 2006, we believe the inclusion of non-GAAP financial measures provide consistency in our financial reporting. These non-GAAP results are one of the primary indicators management uses for assessing our performance, allocating resources and planning and forecasting future periods. Further, management uses non-GAAP information as certain non-cash charges such as amortization of purchased intangibles and share-based compensation do not reflect the cash operating results of the business and certain one-time expenses such as write-off of acquired in-process technology that do not reflect 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) | Write-off of acquired in-process technology associated with the Matrix acquisition (January 2006) and msystems acquisition (November 2006). | |
(c) | Amortization of acquisition-related intangible assets, primarily core and developed technology, related to the acquisition of Matrix and msystems. | |
(d) | Inventory step-up expense related to msystems acquisition. | |
(e) | Income taxes associated with certain non-GAAP adjustments. |
SanDisk Corporation
Preliminary Condensed Consolidated Balance Sheets
(In thousands)
Preliminary Condensed Consolidated Balance Sheets
(In thousands)
July 1, 2007 | April 1, 2007 | December 31, 2006 | ||||||||||
(unaudited) | (unaudited) | |||||||||||
ASSETS | ||||||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | $ | 1,124,213 | $ | 1,811,109 | $ | 1,580,700 | ||||||
Short-term investments | 1,787,022 | 1,169,795 | 1,251,493 | |||||||||
Accounts receivable from product revenues, net | 311,705 | 144,228 | 611,740 | |||||||||
Inventory | 601,372 | 594,156 | 495,984 | |||||||||
Deferred taxes | 176,480 | 175,770 | 176,007 | |||||||||
Other current assets | 246,745 | 162,422 | 125,937 | |||||||||
Total current assets | 4,247,537 | 4,057,480 | 4,241,861 | |||||||||
Long-term investments | 330,020 | 527,363 | 457,184 | |||||||||
Property and equipment, net | 341,829 | 328,645 | 317,965 | |||||||||
Notes receivable and investments in flash ventures | 531,684 | 442,884 | 462,307 | |||||||||
Deferred taxes | 113,788 | 95,366 | 102,100 | |||||||||
Goodwill | 849,907 | 852,862 | 910,254 | |||||||||
Intangibles, net | 354,079 | 376,827 | 389,078 | |||||||||
Other non-current assets | 59,855 | 68,783 | 87,034 | |||||||||
Total Assets | $ | 6,828,699 | $ | 6,750,210 | $ | 6,967,783 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts payable | $ | 190,240 | $ | 188,680 | $ | 261,870 | ||||||
Accounts payable to related parties | 141,041 | 159,710 | 139,627 | |||||||||
Other current accrued liabilities | 189,130 | 162,687 | 311,000 | |||||||||
Deferred income on shipments to distributors and retailers and deferred revenue | 143,587 | 99,273 | 183,950 | |||||||||
Total current liabilities | 663,998 | 610,350 | 896,447 | |||||||||
Convertible long-term debt | 1,225,000 | 1,225,000 | 1,225,000 | |||||||||
Non-current liabilities and deferred revenue | 130,552 | 115,269 | 72,226 | |||||||||
Total Liabilities | 2,019,550 | 1,950,619 | 2,193,673 | |||||||||
Minority interest | 1,207 | 3,651 | 5,976 | |||||||||
Stockholders’ Equity: | ||||||||||||
Common stock | 3,722,400 | 3,686,562 | 3,657,121 | |||||||||
Retained earnings | 1,091,752 | 1,099,580 | 1,105,520 | |||||||||
Accumulated other comprehensive income (loss) | (6,210 | ) | 9,798 | 5,493 | ||||||||
Total stockholders’ equity | 4,807,942 | 4,795,940 | 4,768,134 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,828,699 | $ | 6,750,210 | $ | 6,967,783 | ||||||
SanDisk Corporation
Condensed Consolidated Comparative Statement of Cash Flows
(in thousands, unaudited)
Condensed Consolidated Comparative Statement of Cash Flows
(in thousands, unaudited)
Three months ended | Six months ended | |||||||||||||||
July 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 28,484 | $ | 95,641 | $ | 27,909 | $ | 130,756 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Deferred taxes | 24,329 | (3,939 | ) | 35,760 | (17,395 | ) | ||||||||||
Loss (gain) investment | 1,637 | (602 | ) | (567 | ) | (1,195 | ) | |||||||||
Depreciation and amortization | 64,137 | 31,269 | 129,233 | 57,666 | ||||||||||||
Provision for doubtful accounts | 625 | 1,527 | 1,538 | 1,001 | ||||||||||||
Deferred share-based compensation | 36,971 | 25,903 | 68,190 | 44,688 | ||||||||||||
Tax benefit from share-based compensation | (5,247 | ) | (19,114 | ) | (11,508 | ) | (61,023 | ) | ||||||||
Write-off of acquired in-process technology | — | — | — | 39,600 | ||||||||||||
Other non-cash charges | 3,827 | (3,536 | ) | 8,576 | (4,744 | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (168,103 | ) | (67,498 | ) | 298,927 | 23,048 | ||||||||||
Inventories | (6,454 | ) | 35,508 | (104,563 | ) | (39,976 | ) | |||||||||
Other assets | (93,601 | ) | (68,324 | ) | (30,176 | ) | (8,743 | ) | ||||||||
Accounts payable trade | 1,535 | (65,623 | ) | (71,698 | ) | (123,758 | ) | |||||||||
Accounts payable to related parties | (11,668 | ) | 6,857 | 10,879 | 13,065 | |||||||||||
Other liabilities | 33,077 | 91,270 | (197,702 | ) | 58,798 | |||||||||||
Total adjustments | (118,935 | ) | (36,302 | ) | 136,889 | (18,968 | ) | |||||||||
Net cash provided by (used in) operating activities | (90,451 | ) | 59,339 | 164,798 | 111,788 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of short and long-term investments | (1,054,695 | ) | (685,531 | ) | (1,591,857 | ) | (805,300 | ) | ||||||||
Proceeds from sale and maturities of short and long-term investments | 655,536 | 220,782 | 1,204,682 | 375,446 | ||||||||||||
Investment in Flash Partners and Flash Alliance | — | (84,338 | ) | — | (127,919 | ) | ||||||||||
Acquisition of capital equipment, net | (54,002 | ) | (37,125 | ) | (97,801 | ) | (89,722 | ) | ||||||||
Notes receivable from FlashVision | 12,735 | — | 37,512 | — | ||||||||||||
Notes receivable from Flash Partners | (123,305 | ) | (95,445 | ) | (123,305 | ) | (95,445 | ) | ||||||||
Purchased technology and other assets | — | — | (13,240 | ) | — | |||||||||||
Cash acquired in business combination, net of acquisition costs | — | — | — | 9,432 | ||||||||||||
Net cash used in investing activities | (563,731 | ) | (681,657 | ) | (584,009 | ) | (733,508 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of convertible notes, net of issuance costs | — | 1,125,500 | — | 1,125,500 | ||||||||||||
Purchase of convertible bond hedge | — | (386,090 | ) | — | (386,090 | ) | ||||||||||
Proceeds from issuance of warrants | — | 308,672 | — | 308,672 | ||||||||||||
Proceeds from debt financing | 3,791 | — | 3,791 | — | ||||||||||||
Proceeds from employee stock programs | 15,732 | 22,789 | 54,102 | 68,850 | ||||||||||||
Distribution to minority interest | (2,395 | ) | — | (9,880 | ) | — | ||||||||||
Tax benefit from share-based compensation | 5,247 | 19,114 | 11,508 | 61,023 | ||||||||||||
Share repurchase programs | (55,321 | ) | — | (97,417 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | (32,946 | ) | 1,089,985 | (37,896 | ) | 1,177,955 | ||||||||||
Effect of changes in foreign currency exchange rates on cash | 232 | 247 | 620 | 186 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (686,896 | ) | 467,914 | (456,487 | ) | 556,421 | ||||||||||
Cash and cash equivalents at beginning of period | 1,811,109 | 850,565 | 1,580,700 | 762,058 | ||||||||||||
Cash and cash equivalents at end of period | $ | 1,124,213 | $ | 1,318,479 | $ | 1,124,213 | $ | 1,318,479 | ||||||||