SanDisk 2011 Annual Report Download - page 108

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Geographical Product Revenues.
FY 2011 FY 2010 FY 2009
Revenue
Percent
of Total Revenue
Percent
of Total Revenue
Percent
of Total
(In millions, except percentages)
United States .................... $ 792.7 15% $ 771.0 17% $ 916.3 29%
Asia-Pacific ..................... 3,583.0 68% 2,825.1 63% 1,447.7 46%
Europe, Middle East and Africa ..... 688.5 13% 714.3 16% 707.7 22%
Other foreign countries ............ 223.4 4% 152.5 4% 82.6 3%
Product revenues ............. $ 5,287.6 100% $ 4,462.9 100% $ 3,154.3 100%
Product revenues in Asia-Pacific, which includes Japan, increased in fiscal year 2011 on a year-over-year
basis due primarily to increased sales of embedded products to our OEM customers. Our retail sales in Asia-
Pacific also increased due to increased consumer demand, primarily in China and India. The slight increase in
product revenues for the U.S. in fiscal year 2011, compared to fiscal year 2010, was due primarily to growth in
retail sales of cards for the mobile market and USB flash drives. Product revenues in EMEA decreased slightly in
fiscal year 2011, compared to fiscal year 2010, due primarily to a decrease in sales to certain mobile OEM
customers.
Product revenues in Asia-Pacific, which includes Japan, increased in fiscal year 2010 on a year-over-year
basis due primarily to increased OEM sales of mobile phone products, wafers and components, and growth in
retail sales primarily of imaging products. The decrease in product revenues for the U.S. in fiscal year 2010,
compared to fiscal year 2009, primarily reflected a shift in our OEM sales from U.S. customers to Asia-Pacific
customers. Product revenues in EMEA increased slightly in fiscal year 2010, compared to fiscal year 2009,
reflecting increased OEM sales primarily for the mobile market, partially offset by a decrease in retail sales due
to continued weak consumer spending and our decision not to participate in certain lower-margin opportunities.
License and Royalty Revenues.
FY 2011
Percent
Change FY 2010
Percent
Change FY 2009
(In millions, except percentages)
License and royalty revenues ............ $ 374.5 3% $ 363.9 (12%) $ 412.5
The increase in our fiscal year 2011 license and royalty revenues, when compared to fiscal year 2010, was
primarily due to higher licensable flash memory revenues reported by our licensees.
The decrease in our fiscal year 2010 license and royalty revenues, when compared to fiscal year 2009, was
primarily due to a lower effective royalty rate in a renewed license agreement with one of our significant
licensees as compared to the previous license agreement.
Gross Profit and Margins.
FY 2011
Percent
Change FY 2010
Percent
Change FY 2009
(In millions, except percentages)
Product gross profit .................... $2,064.6 9% $ 1,898.2 118% $ 872.1
Product gross margins (as a percent of
product revenue) .................... 39.0% 42.5% 27.6%
Total gross margins (as a percent of
total revenue) ................... 43.1% 46.9% 36.0%
44