SanDisk 2007 Annual Report Download - page 50

phones. With Sony Corporation, or Sony, we co-own the Memory Stick PRO
TM
format and co-developed the SxS
memory card specification for high capacity, high speed file transfer in professional camcorders. We also worked
with Canon, Inc. to co-found the CompactFlash», or CF, standard. Through our internal development and
technology obtained through acquisitions, we also hold key intellectual property for USB drives. We plan to
continue to work with leading mobile communications and digital consumer device companies to discover new
markets for flash storage products.
Our team has a deep understanding of flash memory technology and we develop and own leading-edge
technology and patents for the design, manufacture and operation of flash memory and data storage cards. One of
the key technologies that we have patented and successfully commercialized is multi-level cell technology, or MLC,
which allows a flash memory cell to be programmed to store two or more bits of data in approximately the same area
of silicon that is typically required to store one bit of data. We have an extensive patent portfolio that has been
licensed by several leading semiconductor companies. Our cumulative license and royalty revenues over the last
three fiscal years were more than $1.02 billion.
We continue to invest with Toshiba in high volume, state-of-the-art flash manufacturing facilities in Japan. Our
commitment takes the form of capital investments and loans to the flash ventures with Toshiba, credit enhancements
of these ventures’ leases of semiconductor manufacturing equipment, commitments, on a take-or-pay basis, to
purchase 50% of the output of these flash ventures with Toshiba at manufacturing cost plus a mark-up and sharing in
the cost of SanDisk-Toshiba joint research and development activities related to flash memory. We supplement our
sourcing of flash memory from the flash ventures with Toshiba with purchases of memory on favorable terms
primarily from Samsung Electronics Co., Ltd., or Samsung, and Toshiba. Additionally, we design in-house and
fabricate at third-party foundries the controllers that interface between flash memory and digital consumer devices.
Our flash memory products are assembled in our in-house assembly and test facility in Shanghai, China, and
through our network of contract manufacturers.
We sell our products globally to retail and OEM customers. We continue to expand our retail customer base to
new geographic regions as well as to new outlets such as mobile storefronts, supermarkets and drug stores. In North
America, we sell our products principally through retailers such as Best Buy Co., Inc., or Best Buy, Circuit City
Stores, Inc., Costco Wholesale Corporation and Wal-Mart Stores, Inc. In Europe and Asia, some of our key
customers include Duttenhofer GmbH & Co. KG, Hama GmbH & Co. KG, Nokia Corporation, Sony Ericsson
Mobile Communications AB, Twinmos Technologies Inc. and Zenitron Corporation. There are now more than
222,000 worldwide retail storefronts offering SanDisk products. We also sell directly and through distributors to
OEM customers, which include mobile phone and digital camera manufacturers, that include our products with
their products when sold to end users. This strategy allows us to leverage the market position, geographic footprint
and brand strength of our customers to achieve broad market penetration for our products.
Additional Information. We were incorporated in Delaware in June 1988 under the name SunDisk
Corporation and changed our name to SanDisk Corporation in August 1995. We file reports and other information
with the Securities and Exchange Commission, or SEC, including annual reports on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K and proxy or information statements. Those reports and statements and
all amendments to those documents filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange
Act (1) may be read and copied at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549,
(2) are available at the SEC’s internet site (http://www.sec.gov), which contains reports, proxy and information
statements and other information regarding issuers that file electronically with the SEC and (3) are available free of
charge through our website as soon as reasonably practicable after electronic filing with, or furnishing to, the SEC.
Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling the SEC at
1-800-SEC-0330. Our website address is www.sandisk.com. Information on our website is not incorporated by
reference nor otherwise included in this report. Our principal executive offices are located at 601 McCarthy Blvd.,
Milpitas, CA 95035 and our telephone number is [phone]. SanDisk is a trademark of SanDisk Corporation,
and is registered in the United States, or U.S., and other countries. Other brand names mentioned herein are for
identification purposes only and may be the trademarks of their respective holder(s).
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