SanDisk 2014 Annual Report Download - page 120

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prices for similar or identical assets, we do not believe estimates and assumptions materially impacted our
valuation of our cash equivalents and short and long-term marketable securities. We currently do not have
any investments that use Level 3 inputs.
Results of Operations
Revenue by Channel.
FY 2014 FY 2013 FY 2012
Percent Percent Percent
Revenue of Total Revenue of Total Revenue of Total
(In millions, except percentages)
Commercial ................ $ 4,454.9 67% $ 3,907.3 63% $ 3,205.5 63%
Retail .................... 2,172.8 33% 2,262.7 37% 1,847.0 37%
Total revenue ............. $ 6,627.7 100% $ 6,170.0 100% $ 5,052.5 100%
The 7% increase in our fiscal year 2014 revenue, compared to fiscal year 2013, reflected a 36%
increase in the number of gigabytes sold, partially offset by a 22% decline in the blended average selling
price per gigabyte.
• The increase in our Commercial revenue for fiscal year 2014, compared to fiscal year 2013, is
primarily related to higher sales of client and enterprise SSDs, partially offset by a decline in sales
of embedded products.
• The decrease in our Retail revenue for fiscal year 2014, compared to fiscal year 2013, was primarily
driven by lower sales of imaging cards and USB drives, partially offset by increased sales of cards for
mobile devices.
The increase in our fiscal year 2013 revenue, compared to fiscal year 2012, reflected a 22% increase in
the number of gigabytes sold with no change in the average selling price per gigabyte. The increase in
Commercial revenue was primarily related to increased sales of client and enterprise SSD products and
embedded memory products for mobile devices, partially offset by decreased sales of cards for mobile
devices due to continued OEM debundling and our allocation of less supply to private label channels. The
increase in Retail revenue was primarily related to increased sales of cards for mobile devices, USB drives
and SSDs. While sales of cards for mobile devices through the Commercial channel were down on a
year-over-year basis, increased sales in after-market retail mobile cards partially offset the Commercial
channel declines.
Revenue by Category.
% of Revenue
FY 2014 FY 2013 FY 2012
Removable ............................................ 38% 43% 53%
SSD solutions .......................................... 29% 19% 9%
Embedded ............................................ 22% 27% 24%
Other(1) .............................................. 11% 11% 14%
Total revenue ......................................... 100% 100% 100%
(1) Other revenue includes license and royalty, wafers and components, and accessories.
50