SanDisk 2005 Annual Report Download - page 124

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SANDISK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
January 1,
2006
January 2,
2005
December 28,
2003
(In thousands, except per share amounts)
Revenues:
Product ........................................... $2,066,607 $1,602,836 $ 982,341
License and royalty .................................. 239,462 174,219 97,460
Total revenue ..................................... 2,306,069 1,777,055 1,079,801
Cost of product revenues ................................ 1,333,335 1,091,350 641,189
Gross profit .......................................... 972,734 685,705 438,612
Operating expenses:
Research and development ............................. 194,810 124,994 84,200
Sales and marketing .................................. 122,232 91,296 66,317
General and administrative ............................. 79,110 50,824 31,057
Total operating expenses ............................. 396,152 267,114 181,574
Operating income ..................................... 576,582 418,591 257,038
Equity in income of business ventures ...................... 381 568 178
Interest income ....................................... 42,835 20,363 8,865
Interest expense ....................................... (573) (5,949) (6,750)
Gain (loss) in investment in foundries ...................... (8,228) (12,927) 3,746
Recovery (loss) on unauthorized sale of UMC shares ........... — 6,193 (18,339)
Other income (loss), net ................................. 2,310 (3,639) (2,857)
Income before taxes.................................... 613,307 423,200 241,881
Provision for income taxes ............................... 226,923 156,584 73,022
Net income .......................................... $ 386,384 $ 266,616 $ 168,859
Net income per share
Basic ............................................. $ 2.11 $ 1.63 $ 1.17
Diluted ........................................... $ 2.00 $ 1.44 $ 1.02
Shares used in computing net income per share
Basic ............................................. 183,008 164,065 144,781
Diluted ........................................... 193,016 188,837 171,616
The accompanying notes are an integral part of these consolidated financial statements.
F-5
Annual Report