SanDisk 2006 Annual Report Download - page 105

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SANDISK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
December 31,
2006
January 1,
2006
January 2,
2005
(In thousands, except per share amounts)
Revenues:
Product ........................................... $2,926,472 $2,066,607 $1,602,836
License and royalty .................................. 331,053 239,462 174,219
Total revenues .................................... 3,257,525 2,306,069 1,777,055
Cost of product revenues ................................ 2,007,684 1,333,335 1,091,350
Amortization of acquisition-related intangible assets ............ 10,368 — —
Total cost of product revenues ........................ 2,018,052 1,333,335 1,091,350
Gross profit .......................................... 1,239,473 972,734 685,705
Operating expenses:
Research and development ............................. 306,866 194,810 124,994
Sales and marketing .................................. 203,406 122,232 91,296
General and administrative ............................. 159,835 79,110 50,824
Write-off of acquired in-process technology ................ 225,600 — —
Amortization of acquisition-related intangible assets .......... 17,432 — —
Total operating expenses ............................. 913,139 396,152 267,114
Operating income ..................................... 326,334 576,582 418,591
Equity in income of business ventures ...................... 594 381 568
Interest income ....................................... 101,088 42,835 20,363
Gain (loss) on investment in foundries ...................... 6,084 (8,228) (12,927)
Recovery on unauthorized sale of UMC shares ................ — — 6,193
Interest expense and other income (expense), net .............. (3,392) 1,737 (9,588)
Total other income ................................. 104,374 36,725 4,609
Income before provision for income taxes . . ................. 430,708 613,307 423,200
Provision for income taxes ............................... 230,193 226,923 156,584
Income after taxes ..................................... 200,515 386,384 266,616
Minorityinterest ...................................... 1,619 — —
Net income .......................................... $ 198,896 $ 386,384 $ 266,616
Net income per share:
Basic ............................................. $ 1.00 $ 2.11 $ 1.63
Diluted ........................................... $ 0.96 $ 2.00 $ 1.44
Shares used in computing net income per share:
Basic ............................................. 198,929 183,008 164,065
Diluted ........................................... 207,451 193,016 188,837
The accompanying notes are an integral part of these consolidated financial statements.
F-6