Exhibit 99.1
SanDisk Corporation
601 McCarthy Boulevard
Milpitas, CA 95035-7932
Phone: 408-801-1000
Fax: 408-801-8657
CONTACT: | Investor Contact: | Media Contact: |
Jay Iyer | Ryan Donovan | |
(408) 801-2067 | (408) 801-2857 |
SANDISK ANNOUNCES SECOND QUARTER 2009 FINANCIAL RESULTS
Reports positive operating margin and EPS
Milpitas, CA, July 22, 2009 - SanDisk Corporation (NASDAQ:SNDK), the global leader in flash memory cards, today announced results for the second quarter ended June 28, 2009. Total second quarter revenue of $731 million declined 10% on a year-over-year basis and increased 11% on a sequential basis. Net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $53 million, or $0.23 per diluted share, compared to GAAP net loss of ($74) million or ($0.33) per share in the second quarter of 2008 and GAAP net loss of ($208) million, or ($0.92) per share in the first quarter of 2009.
On a non-GAAP basis, which excludes the impact of acquisition-related charges, share-based compensation expense, and economic non-cash interest expense associated with the cash-settled convertible note, the second-quarter net income was $83 million, or $0.36 per diluted share, compared to a net loss of ($22) million or ($0.10) per share in the second quarter of 2008 and net loss of ($108) million or ($0.48) per share in the first quarter of 2009. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.
“We are very pleased with our return to profitability in the second quarter, driven by increased pricing, higher royalty revenue, and strong execution. Our decisive and timely restructuring actions are delivering the intended results,” said Eli Harari, Chairman and CEO, SanDisk. “In the second quarter we renewed our patent cross license agreement with Samsung Electronics, providing market certainty. We remain cautiously optimistic about the second half of 2009.”
SECOND QUARTER 2009 METRICS & HIGHLIGHTS
- Total cash and equivalents, short and long-term investments at the end of the second quarter was $2.34 billion compared to $2.54 billion at the end of the second quarter of 2008 and $2.38 billion at the end of the first quarter of 2009.
- Product revenue was $610 million, down 11% year-over-year and up 4% sequentially.
- License and royalty revenue of $120 million, was down 7% year-over-year and up 68% sequentially.
- Gigabytes sold increased 118% year-over-year and decreased 7% sequentially.
- Average price per gigabyte sold declined 59% year-over-year and increased 12% sequentially.
- Average retail card capacity was 4.27 gigabytes, an increase of 81% on a year-over-year basis and a decrease of 2% sequentially.
- GAAP product gross profit was $129 million compared to GAAP product gross profit of $22 million in the second quarter of 2008 and GAAP product gross loss of ($73) million in the first quarter of 2009.
- Non-GAAP product gross profit was $134 million, compared to non-GAAP product gross profit of $39 million in the second quarter of 2008 and non-GAAP product loss of ($67) million in the first quarter of 2009. Second quarter product gross profit included an $87 million benefit primarily from the sale of previously reserved inventory.
- GAAP operating profit was $68 million compared to GAAP operating loss of ($101) million in the second quarter of 2008 and GAAP operating loss of ($165) million in the first quarter of 2009.
- Non-GAAP operating profit was $94 million compared to non-GAAP operating loss of ($57) million in the second quarter of 2008 and non-GAAP operating loss of ($146) million in the first quarter of 2009.
OTHER RECENT KEY ANNOUNCEMENTS
- SanDisk and Samsung Electronics Co., Ltd. (“Samsung”) renewed the cross license agreement of their semiconductor patent portfolios for another seven years. In addition, the companies signed a flash memory supply agreement under which Samsung will continue to make available to SanDisk a guaranteed portion of its flash memory production output.
- SanDisk introduced the world’s fastest 32-gigabyte1 SanDisk Extreme® SDHC™ card, with read and write speeds at up to 30 megabytes per second2, for photography and video enthusiasts.
- SanDisk began shipping its next-generation flash memory-based modular solid state drives (SSD), SanDisk® pSSD™ P2 and S2, featuring nCache™, a new technology designed to improve netbook performance, at a competitive price.
SCHEDULED INTERVIEW
SanDisk Corporation Chairman and Chief Executive Officer, Eli Harari, is scheduled to appear on CNBC’s “Closing Bell with Maria Bartiromo,” on July 22, 2009, at approximately 1:15 P.M., PDT.
CONFERENCE CALL
SanDisk’s second quarter 2009 conference call is scheduled for 2:00 P.M., PDT, Wednesday, July 22, 2009. The conference call will be webcast and can be accessed live, and throughout the quarter, at SanDisk's website at http://www.sandisk.com/IR. To participate in the call via telephone, the dial-in number is 913-312-0690. The dial-in password is 2247552. 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, the benefits from the restructuring of our joint ventures and other restructuring actions that we have taken, the expected benefits from the renewal of the Samsung cross license agreement, our expectations for the second half of 2009, and our expectations regarding our business, 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, or no, growth in market demand for our products including, for example, our solid state drives, or a slower adoption rate for our products in current and new markets that we are targeting including, for example, the mobile phone market,
- reduced demand or consumer confidence due to the continuing global economic downturn,
- over-supply in the markets that we serve,
- declines in average selling prices,
- 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 smaller geometries of NAND flash technology,
- increased memory component and other costs as a result of currency exchange rate fluctuations to the U.S. dollar, particularly with respect to the Japanese yen,
- the failure of our licensees to abide by contractual terms,
- 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,
- adverse results in litigation or regulatory actions affecting us, 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/A for the fiscal year ended December 28, 2008 and Quarterly Report on Form 10-Q for the first quarter ended March 29, 2009.
Future results may differ materially from those previously reported. We do not intend to update the information contained in this release.
ABOUT SANDISK
SanDisk Corporation, the inventor and world’s largest supplier of flash storage cards, is a global leader in flash memory – from research, manufacturing and product design to consumer branding and retail distribution. SanDisk’s product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders, digital audio/video players, USB flash drives for consumers and the enterprise, embedded memory for mobile devices, and solid state drives for computers. SanDisk (www.sandisk.com/corporate) is a Silicon Valley-based S&P 500 company with more than half its sales outside the United States.
SanDisk, the SanDisk logo and SanDisk Extreme are trademarks of SanDisk Corporation, registered in the United States and other countries. nCache and SanDisk pSSD are trademarks of SanDisk Corporation. SDHC is a trademark of SD-3C LLC. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
1 1 gigabyte (GB) = 1 billion bytes. Some capacity not available for data storage.
2 Based on SanDisk internal testing; performance may vary depending upon host device.
SanDisk Corporation
Preliminary Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
Three months ended | Six months ended | |||||||||||||||
June 28, 2009 | June 29, 2008(1) | June 28, 2009 | June 29, 2008(1) | |||||||||||||
Revenues: | ||||||||||||||||
Product | $ | 610,432 | $ | 687,508 | $ | 1,198,531 | $ | 1,411,559 | ||||||||
License and royalty | 120,141 | 128,503 | 191,513 | 254,419 | ||||||||||||
Total revenues | 730,573 | 816,011 | 1,390,044 | 1,665,978 | ||||||||||||
Cost of product revenues | 478,444 | 650,558 | 1,135,922 | 1,227,162 | ||||||||||||
Amortization of acquisition-related intangible assets | 3,132 | 14,582 | 6,264 | 29,164 | ||||||||||||
Total cost of product revenues | 481,576 | 665,140 | 1,142,186 | 1,256,326 | ||||||||||||
Gross profit | 248,997 | 150,871 | 247,858 | 409,652 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 91,219 | 112,143 | 178,155 | 223,577 | ||||||||||||
Sales and marketing | 50,409 | 77,638 | 88,287 | 157,794 | ||||||||||||
General and administrative | 38,636 | 53,684 | 76,961 | 111,488 | ||||||||||||
Amortization of acquisition-related intangible assets | 291 | 4,553 | 583 | 9,028 | ||||||||||||
Restructuring and other | ─ | 4,085 | 765 | 4,085 | ||||||||||||
Total operating expenses | 180,555 | 252,103 | 344,751 | 505,972 | ||||||||||||
Operating income (loss) | 68,442 | (101,232 | ) | (96,893 | ) | (96,320 | ) | |||||||||
Other income (expense) | 4,716 | 8,323 | (13,977 | ) | 22,208 | |||||||||||
Income (loss) before income taxes | 73,158 | (92,909 | ) | (110,870 | ) | (74,112 | ) | |||||||||
Provision for (benefit from) income taxes | 20,651 | (19,155 | ) | 44,618 | (11,318 | ) | ||||||||||
Net income (loss) | $ | 52,507 | $ | (73,754 | ) | $ | (155,488 | ) | $ | (62,794 | ) | |||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.23 | $ | (0.33 | ) | $ | (0.69 | ) | $ | (0.28 | ) | |||||
Diluted | $ | 0.23 | $ | (0.33 | ) | $ | (0.69 | ) | $ | (0.28 | ) | |||||
Shares used in computing net income (loss) per share: | ||||||||||||||||
Basic | 226,976 | 224,888 | 226,753 | 224,703 | ||||||||||||
Diluted | 231,066 | 224,888 | 226,753 | 224,703 |
(1) | As adjusted for the adoption of FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), on December 29, 2008. |
SanDisk Corporation
Reconciliation of Preliminary GAAP to Non-GAAP Operating Results (1)
(in thousands, except per share data, unaudited)
Three months ended | Six months ended | |||||||||||||||
June 28, 2009 | June 29, 2008(2) | June 28, 2009 | June 29, 2008(2) | |||||||||||||
SUMMARY RECONCILIATION OF NET INCOME (LOSS) | ||||||||||||||||
GAAP NET INCOME (LOSS) | $ | 52,507 | $ | (73,754 | ) | $ | (155,488 | ) | $ | (62,794 | ) | |||||
Share-based compensation (a) | 22,354 | 25,108 | 38,684 | 48,334 | ||||||||||||
Amortization of acquisition-related intangible assets (b) | 3,423 | 19,135 | 6,847 | 38,192 | ||||||||||||
Convertible debt interest (c) | 13,159 | 12,219 | 26,085 | 24,216 | ||||||||||||
Income tax adjustments (d) | (8,495 | ) | (5,049 | ) | 58,357 | (22,503 | ) | |||||||||
NON-GAAP NET INCOME (LOSS) | $ | 82,948 | $ | (22,341 | ) | $ | (25,515 | ) | $ | 25,445 | ||||||
GAAP COST OF PRODUCT REVENUES | $ | 481,576 | $ | 665,140 | $ | 1,142,186 | $ | 1,256,326 | ||||||||
Share-based compensation (a) | (2,446 | ) | (2,009 | ) | (4,820 | ) | (5,638 | ) | ||||||||
Amortization of acquisition-related intangible assets (b) | (3,132 | ) | (14,582 | ) | (6,264 | ) | (29,164 | ) | ||||||||
NON-GAAP COST OF PRODUCT REVENUES | $ | 475,998 | $ | 648,549 | $ | 1,131,102 | $ | 1,221,524 | ||||||||
GAAP GROSS PROFIT | $ | 248,997 | $ | 150,871 | $ | 247,858 | $ | 409,652 | ||||||||
Share-based compensation (a) | 2,446 | 2,009 | 4,820 | 5,638 | ||||||||||||
Amortization of acquisition-related intangible assets (b) | 3,132 | 14,582 | 6,264 | 29,164 | ||||||||||||
NON-GAAP GROSS PROFIT | $ | 254,575 | $ | 167,462 | $ | 258,942 | $ | 444,454 | ||||||||
GAAP RESEARCH AND DEVELOPMENT EXPENSES | $ | 91,219 | $ | 112,143 | $ | 178,155 | $ | 223,577 | ||||||||
Share-based compensation (a) | (9,052 | ) | (9,324 | ) | (15,204 | ) | (18,150 | ) | ||||||||
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES | $ | 82,167 | $ | 102,819 | $ | 162,951 | $ | 205,427 | ||||||||
GAAP SALES AND MARKETING EXPENSES | $ | 50,409 | $ | 77,638 | $ | 88,287 | $ | 157,794 | ||||||||
Share-based compensation (a) | (4,886 | ) | (6,423 | ) | (7,235 | ) | (9,934 | ) | ||||||||
NON-GAAP SALES AND MARKETING EXPENSES | $ | 45,523 | $ | 71,215 | $ | 81,052 | $ | 147,860 | ||||||||
GAAP GENERAL AND ADMINISTRATIVE EXPENSES | $ | 38,636 | $ | 53,684 | $ | 76,961 | $ | 111,488 | ||||||||
Share-based compensation (a) | (5,970 | ) | (7,352 | ) | (11,425 | ) | (14,612 | ) | ||||||||
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES | $ | 32,666 | $ | 46,332 | $ | 65,536 | $ | 96,876 | ||||||||
GAAP TOTAL OPERATING EXPENSES | $ | 180,555 | $ | 252,103 | $ | 344,751 | $ | 505,972 | ||||||||
Share-based compensation (a) | (19,908 | ) | (23,099 | ) | (33,864 | ) | (42,696 | ) | ||||||||
Amortization of acquisition-related intangible assets (b) | (291 | ) | (4,553 | ) | (583 | ) | (9,028 | ) | ||||||||
NON-GAAP TOTAL OPERATING EXPENSES | $ | 160,356 | $ | 224,451 | $ | 310,304 | $ | 454,248 | ||||||||
GAAP OPERATING INCOME (LOSS) | $ | 68,442 | $ | (101,232 | ) | $ | (96,893 | ) | $ | (96,320 | ) | |||||
Cost of product revenues adjustments (a) (b) | 5,578 | 16,591 | 11,084 | 34,802 | ||||||||||||
Operating expense adjustments (a) (b) | 20,199 | 27,652 | 34,447 | 51,724 | ||||||||||||
NON-GAAP OPERATING INCOME (LOSS) | $ | 94,219 | $ | (56,989 | ) | $ | (51,362 | ) | $ | (9,794 | ) | |||||
GAAP OTHER INCOME (EXPENSE) | $ | 4,716 | $ | 8,323 | $ | (13,977 | ) | $ | 22,208 | |||||||
Convertible debt interest (c) | 13,159 | 12,219 | 26,085 | 24,216 | ||||||||||||
NON-GAAP OTHER INCOME (EXPENSE) | $ | 17,875 | $ | 20,542 | $ | 12,108 | $ | 46,424 | ||||||||
GAAP NET INCOME (LOSS) | $ | 52,507 | $ | (73,754 | ) | $ | (155,488 | ) | $ | (62,794 | ) | |||||
Cost of product revenues adjustments (a) (b) | 5,578 | 16,591 | 11,084 | 34,802 | ||||||||||||
Operating expense adjustments (a) (b) | 20,199 | 27,652 | 34,447 | 51,724 | ||||||||||||
Convertible debt interest (c) | 13,159 | 12,219 | 26,085 | 24,216 | ||||||||||||
Income tax adjustments (d) | (8,495 | ) | (5,049 | ) | 58,357 | (22,503 | ) | |||||||||
NON-GAAP NET INCOME (LOSS) | $ | 82,948 | $ | (22,341 | ) | $ | (25,515 | ) | $ | 25,445 | ||||||
Diluted net income (loss) per share: | ||||||||||||||||
GAAP | $ | 0.23 | $ | (0.33 | ) | $ | (0.69 | ) | $ | (0.28 | ) | |||||
Non-GAAP | $ | 0.36 | $ | (0.10 | ) | $ | (0.11 | ) | $ | 0.11 | ||||||
Shares used in computing diluted net income (loss) per share: | ||||||||||||||||
GAAP | 231,066 | 224,888 | 226,753 | 224,703 | ||||||||||||
Non-GAAP | 231,818 | 224,888 | 226,753 | 227,703 |
SanDisk Corporation
Reconciliation of Preliminary GAAP to Non-GAAP Operating Results (1)
(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 (loss) and net income (loss) 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, the amortization of acquisition-related intangible assets related to acquisitions of Matrix Semiconductor, Inc. in January 2006, msystems Ltd. in November 2006 and MusicGremlin, Inc. in June 2008, and economic non-cash interest expense associated with our cash-settled convertible debt, we believe the inclusion of non-GAAP financial measures provide consistency in our financial reporting. 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 purchased intangible assets, share-based compensation, and economic non-cash interest expense associated with our cash-settled convertible debt, 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. |
(2) | As adjusted for the adoption of FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), on December 29, 2008. |
(a) | Share-based compensation expense. |
(b) | Amortization of acquisition-related intangible assets, primarily core and developed technology, related to the acquisitions of Matrix Semiconductor, Inc. (January 2006), msystems Ltd. (November 2006), and MusicGremlin, Inc. (June 2008). |
(c) | Incremental interest expense associated with the adoption of FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), on December 29, 2008. |
(d) | Income taxes associated with certain non-GAAP to GAAP adjustments and a valuation allowance on deferred taxes. |
SanDisk Corporation
Preliminary Condensed Consolidated Balance Sheets
(in thousands, unaudited)
June 28, 2009 | December 28, 2008(1) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 884,527 | $ | 962,061 | ||||
Short-term investments | 477,622 | 477,296 | ||||||
Accounts receivable from product revenues, net | 150,830 | 122,092 | ||||||
Inventory | 527,071 | 598,251 | ||||||
Deferred taxes | 55,529 | 84,023 | ||||||
Other current assets | 197,559 | 469,961 | ||||||
Total current assets | 2,293,138 | 2,713,684 | ||||||
Long-term investments | 975,864 | 1,097,302 | ||||||
Property and equipment, net | 350,812 | 396,987 | ||||||
Notes receivable and investments in the flash ventures with Toshiba | 1,511,745 | 1,602,291 | ||||||
Deferred taxes | 14,640 | 15,188 | ||||||
Intangible assets, net | 61,472 | 63,182 | ||||||
Other non-current assets | 38,311 | 43,506 | ||||||
Total assets | $ | 5,245,982 | $ | 5,932,140 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable trade | $ | 116,298 | $ | 240,985 | ||||
Accounts payable to related parties | 246,743 | 370,006 | ||||||
Convertible short-term debt | 75,000 | ─ | ||||||
Other current accrued liabilities | 204,148 | 502,443 | ||||||
Deferred income on shipments to distributors and retailers and deferred revenue | 172,987 | 149,575 | ||||||
Total current liabilities | 815,176 | 1,263,009 | ||||||
Convertible long-term debt | 905,766 | 954,094 | ||||||
Non-current liabilities | 259,588 | 274,316 | ||||||
Total liabilities | 1,980,530 | 2,491,419 | ||||||
EQUITY | ||||||||
Stockholders' equity: | ||||||||
Common stock | 4,198,674 | 4,154,392 | ||||||
Accumulated deficit | (1,058,287 | ) | (902,799 | ) | ||||
Accumulated other comprehensive income | 125,924 | 188,977 | ||||||
Total stockholders' equity | 3,266,311 | 3,440,570 | ||||||
Non-controlling interests | (859 | ) | 151 | |||||
Total equity | 3,265,452 | 3,440,721 | ||||||
Total liabilities and equity | $ | 5,245,982 | $ | 5,932,140 |
(1) | As adjusted for the adoption of FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), on December 29, 2008. |
SanDisk Corporation
Preliminary Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
Three months ended | Six months ended | |||||||||||||||
June 28, 2009 | June 29, 2008(1) | June 28, 2009 | June 29, 2008(1) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 52,507 | $ | (73,754 | ) | $ | (155,488 | ) | $ | (62,794 | ) | |||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||||||||||||||||
Deferred and other taxes | (6,619 | ) | (4,185 | ) | 2,303 | (13,631 | ) | |||||||||
Depreciation | 37,527 | 45,665 | 76,652 | 86,875 | ||||||||||||
Amortization | 18,766 | 34,044 | 37,110 | 67,714 | ||||||||||||
Provision for doubtful accounts | (2,942 | ) | 1,177 | (779 | ) | 6,951 | ||||||||||
Share-based compensation expense | 22,354 | 25,108 | 38,684 | 48,334 | ||||||||||||
Excess tax benefit from share-based compensation | ─ | (883 | ) | ─ | (1,677 | ) | ||||||||||
Impairment, restructuring and other charges | ─ | 549 | 7,133 | 4,483 | ||||||||||||
Other non-cash charges | 3,155 | 1,892 | (967 | ) | 7,284 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable from product revenues | (38,793 | ) | (24,935 | ) | (27,960 | ) | 252,002 | |||||||||
Inventory | 21,239 | (99,997 | ) | 61,548 | (240,359 | ) | ||||||||||
Other assets | 5,137 | (159,556 | ) | 225,520 | (49,575 | ) | ||||||||||
Accounts payable trade | (12,226 | ) | 5,125 | (124,686 | ) | (47,889 | ) | |||||||||
Accounts payable to related parties | (53,108 | ) | (29,976 | ) | (123,263 | ) | (26,255 | ) | ||||||||
Other liabilities | (71,284 | ) | (52,920 | ) | (154,355 | ) | (145,476 | ) | ||||||||
Total adjustments | (76,794 | ) | (258,892 | ) | 16,940 | (51,219 | ) | |||||||||
Net cash provided by (used in) operating activities | (24,287 | ) | (332,646 | ) | (138,548 | ) | (114,013 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of short and long-term investments | (367,171 | ) | (537,265 | ) | (536,109 | ) | (892,220 | ) | ||||||||
Proceeds from sale of short and long-term investments | 153,655 | 294,532 | 575,767 | 728,896 | ||||||||||||
Maturities of short and long-term investments | 51,010 | 162,514 | 87,640 | 352,563 | ||||||||||||
Acquisition of property and equipment, net | (16,170 | ) | (50,138 | ) | (32,667 | ) | (106,912 | ) | ||||||||
Investment in Flash Alliance Ltd. | ─ | (96,705 | ) | ─ | (96,705 | ) | ||||||||||
Distribution from FlashVision Ltd. | ─ | 28,987 | 12,713 | 28,987 | ||||||||||||
Issuance of notes receivable from Flash Partners Ltd. and Flash Alliance Ltd. | (51,573 | ) | ─ | (377,923 | ) | (37,418 | ) | |||||||||
Proceeds from notes receivable from Flash Partners Ltd. and Flash Alliance Ltd. | 53,079 | ─ | 330,149 | ─ | ||||||||||||
Purchased technology and other assets | (7,500 | ) | (3,000 | ) | (6,290 | ) | (1,875 | ) | ||||||||
Acquisition of MusicGremlin, Inc. | ─ | (4,528 | ) | ─ | (4,528 | ) | ||||||||||
Net cash provided by (used in) investing activities | (184,670 | ) | (205,603 | ) | 53,280 | (29,212 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Repayment of debt financing | ─ | ─ | ─ | (9,785 | ) | |||||||||||
Proceeds from employee stock programs | 1,705 | 2,913 | 6,275 | 9,350 | ||||||||||||
Excess tax benefit from share-based compensation | ─ | 883 | ─ | 1,677 | ||||||||||||
Net cash provided by (used in) financing activities | 1,705 | 3,796 | 6,275 | 1,242 | ||||||||||||
Effect of changes in foreign currency exchange rates on cash | 1,700 | (1,254 | ) | 1,459 | (2,188 | ) | ||||||||||
Net decrease in cash and cash equivalents | (205,552 | ) | (535,707 | ) | (77,534 | ) | (144,171 | ) | ||||||||
Cash and cash equivalents at beginning of period | 1,090,079 | 1,225,285 | 962,061 | 833,749 | ||||||||||||
Cash and cash equivalents at end of period | $ | 884,527 | $ | 689,578 | $ | 884,527 | $ | 689,578 |
(1) | As adjusted for the adoption of FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), on December 29, 2008. |