SanDisk 2004 Annual Report Download - page 65

Table of Contents
Notes to Consolidated Financial Statements — (Continued)
Information regarding geographic areas for fiscal years 2004, 2003 and 2002 are as follows (in thousands):
Years Ended
January 2, December 28, December 29,
2005 2003 2002
Revenues:
North America $ 771,659 $ 417,869 $ 243,144
Japan 191,686 184,195 88,298
EMEA 420,645 232,080 116,765
Other foreign countries 393,065 245,657 93,066
Total $ 1,777,055 $ 1,079,801 $ 541,273
Long Lived Assets:
North America $ 86,024 $ 58,569 $ 22,132
Japan 263,248 169,330 150,217
Israel 14,737 40,877 16,869
Other foreign countries 472 325 19,758
Total $ 364,481 $ 269,101 $ 208,976
Revenues are attributed to countries based on the geographic location of the customers. Long−lived assets are attributed to the
geographic location in which they are located. The Company includes in long−lived assets, property plant and equipment, investment
in foundry, and equity investments and attributes those investments to the locality of the investee’s primary operations.
Customer and Supplier Concentrations. A limited number of customers or licensees have accounted for a substantial portion of the
Company’s revenues. Revenues from the Company’s top 10 customers or licensees accounted for approximately 55%, 48% and 45%
of the Company’s revenues for the years ended January 2, 2005, December 28, 2003 and December 29, 2002, respectively. Nine of the
top ten customers or licensees for 2004 were also part of the Company’s top ten customers or licensees for 2003. Eight of the top ten
customers or licensees for 2003, were also part of the Company’s top ten customers or licensees in 2002. In 2004, 2003 and 2002, no
single customer or licensee accounted for more than 10% of total revenues.
All of the Company’s flash memory card products require silicon wafers for the memory components and the controller
components. The substantial majority of the Company’s memory wafers are currently supplied from Toshiba’s Yokkaichi Operations
and to a lesser extent by Renesas and Samsung. The Company’s controller wafers are currently manufactured by Tower and UMC.
The failure of any of these sources to deliver silicon could have a material adverse effect on the Company’s business, financial
condition and results of operations. Moreover, Toshiba’s employees that produce FlashVision’s and Flash Partners’ products are
covered by collective bargaining agreements and any job action by those employees could interrupt the Company’s wafer supply from
Toshiba’s Yokkaichi Operations.
In addition, key components are purchased from single source vendors for which alternative sources are currently not available.
Shortages could occur in these essential materials due to an interruption of supply or increased demand in the industry. If the
Company were unable to procure certain of such materials, it would be required to reduce its manufacturing operations, which could
have a material adverse effect upon its results of operations. The Company also relies on third−party subcontractors to assemble and
test its products. The Company has no long−term contracts with these subcontractors and cannot directly control product delivery
schedules. This could lead to product shortages or quality assurance problems that could increase the manufacturing costs of its
products and have material adverse effects on the Company’s operating results.
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