SanDisk 2005 Annual Report Download - page 104

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On or about January 12, 2006, we were served with a complaint in an action filed by SoftVault Systems, Inc. in
the United States District Court for the Eastern District of Texas. The case is SoftVault Systems, Inc. v. Yahoo! Inc.,
Microsoft Corporation, Napster, Inc., Creative Labs, Inc., Dell USA LP, Gateway, Inc., iriver America, Inc., Samsung
Electronics America, Inc., Toshiba America Consumer Products, L.L.C., Digital Networks North America, Inc., Palm,
Inc., Audiovox Corporation, SanDisk Corporation, and Thomson Inc., Case No. 2:06-cv-00017-LED. SoftVault
accuses us, and others, of infringing its patents through the use of Microsoft’s Windows Digital Rights Management
technology. We are reviewing the matter and preparing our answer. We intend to vigorously defend against this action.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of fiscal 2005.
PART II
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market For Our Common Stock and Related Stockholder Matters
Our common stock is traded on the NASDAQ National Market under the symbol “SNDK”. The information set
forth below gives retroactive effect to a 2-for-1 stock split, in the form of a 100% stock dividend, effected on
February 18, 2004. The following table summarizes the high and low bid quotations for our common stock as
reported by the NASDAQ Stock Market.
High Low
2004
First quarter .................................................. $36.35 $23.49
Second quarter ................................................ $33.25 $19.79
Third quarter.................................................. $28.70 $19.28
Fourth quarter ................................................. $31.96 $19.66
2005
First quarter .................................................. $28.42 $20.25
Second quarter ................................................ $29.03 $23.45
Third quarter.................................................. $48.58 $23.41
Fourth quarter ................................................. $65.49 $45.65
As of March 1, 2006, we had approximately 605 stockholders of record. We have never declared or paid any
cash dividends on our common stock and do not expect to pay cash dividends on our common stock in the
foreseeable future.
29
Annual Report