SanDisk 1998 Annual Report Download - page 42

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SanDisk Corporation
37
Cash Flows
Years Ended December 31,
(In thousands) 1998 1997 1996
CASH FLOW S FROM OPERATING ACTIVITIES
Net income $ 11,836 $ 19,839 $ 14,485
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 5,839 3,985 2,347
Deferred tax 1,160 (16,055) (1,000)
Compensation related to modification of stock option terms 33 — —
Changes in assets and liabilities:
Accounts receivable (1,048) (7,467) (3,457)
Inventory 6,726 (6,018) 781
Prepaid expenses and other current assets (5,288) (1,122) (250)
Deposits and other assets 283 (9) (271)
Accounts payable (7,174) 6,516 (1,458)
Accrued payroll and related expenses (906) 1,817 911
Income taxes payable 856 1,997 1,441
Other accrued liabilities 1,548 990 149
Deferred revenue (515) 22,315 (253)
Total adjustments 1,514 6,949 (1,060)
Net cash provided by operating activities 13,350 26,788 13,425
CASH FLOW S FROM INVESTING ACTIVITIES
Purchases of short-term investments (137,822) (148,954) (47,977)
Proceeds from short-term investments 133,214 89,919 34,157
Acquisition of property and equipment (7,489) (9,592) (8,378)
Investment in foundry (10,923) (40,284) —
Net cash used in investing activities (23,020) (108,911) (22,198)
CASH FLOW S FROM FINANCING ACTIVITIES
Sale of common stock and warrants, net of repurchases 4,166 83,688 939
Principal payments under capital leases — — (98)
Net cash provided by financing activities 4,166 83,688 841
Net increase (decrease) in cash and cash equivalents (5,504) 1,565 (7,932)
Cash and cash equivalents at beginning of year 20,888 19,323 27,255
Cash and cash equivalents at end of year $ 15,384 $ 20,888 $ 19,323
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest $ — $ — $ 3
Cash paid for income taxes $ 8,277 $ 15,172 $ 451
The accompanying notes are an integral part of these consolidated financial statements.
CON SOLIDATED STATEMEN TS OF CA SH FLOWS