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Sandisk Corporation(SNDK) - 2025 Q3 - Quarterly Results
SNDKSandisk Corporation(SNDK)2025-05-07 20:10

Financial Performance - Third quarter revenue was 1.70billion,down101.70 billion, down 10% sequentially and down 1% year-over-year[4] - Third quarter GAAP loss was 1.93 billion, including a 1.83billiongoodwillimpairmentcharge,resultinginalosspershareof1.83 billion goodwill impairment charge, resulting in a loss per share of 13.33[4] - Non-GAAP loss per share for the third quarter was 0.30[4]−Thecompanyexpectsfourthquarterrevenuetobeintherangeof0.30[4] - The company expects fourth quarter revenue to be in the range of 1.75 billion to 1.85billion[4]−RevenueforthethreemonthsendedMarch28,2025,was1.85 billion[4] - Revenue for the three months ended March 28, 2025, was 1,695 million, a slight decrease of 0.6% compared to 1,705millionforthesameperiodin2024[20]−ThenetlossforthethreemonthsendedMarch28,2025,was1,705 million for the same period in 2024[20] - The net loss for the three months ended March 28, 2025, was 1,933 million, compared to a net income of 27millionforthesameperiodin2024[20]−GAAPnetlossforthethreemonthsendedMarch28,2025,was27 million for the same period in 2024[20] - GAAP net loss for the three months ended March 28, 2025, was (1.933) billion, compared to a net income of 0.104billionforthesameperiodin2024[27]−Non−GAAPnetlossforthethreemonthsendedMarch28,2025,was0.104 billion for the same period in 2024[27] - Non-GAAP net loss for the three months ended March 28, 2025, was (0.043) billion, while the same period in 2024 reported a net income of 0.178billion[27]OperatingExpenses−Operatingexpensesincreasedto0.178 billion[27] Operating Expenses - Operating expenses increased to 2.26 billion, up 451% sequentially[5] - Operating expenses for the three months ended March 28, 2025, totaled 2,263million,comparedto2,263 million, compared to 398 million for the same period in 2024, primarily due to a goodwill impairment of 1,830million[20]−ResearchanddevelopmentexpensesforthethreemonthsendedMarch28,2025,were1,830 million[20] - Research and development expenses for the three months ended March 28, 2025, were 285 million, slightly up from 277millioninthesameperiodof2024[20]−Thecompanyincurredbusinessseparationcostsof277 million in the same period of 2024[20] - The company incurred business separation costs of 0.009 billion for the three months ended March 28, 2025, compared to 0.021billioninthesameperiodof2024[27]−Stock−basedcompensationexpenseforthethreemonthsendedMarch28,2025,was0.021 billion in the same period of 2024[27] - Stock-based compensation expense for the three months ended March 28, 2025, was 0.044 billion, slightly down from 0.048billioninthesameperiodof2024[27]CashFlowandAssets−CashflowsfromoperatingactivitiesforthethreemonthsendedMarch28,2025,provided0.048 billion in the same period of 2024[27] Cash Flow and Assets - Cash flows from operating activities for the three months ended March 28, 2025, provided 26 million, compared to a cash outflow of 12millionforthesameperiodin2024[22]−Thecompanyreportedanetcashincreaseof12 million for the same period in 2024[22] - The company reported a net cash increase of 703 million for the three months ended March 28, 2025, compared to a decrease of 48millioninthesameperiodof2024[23]−Thetotalcashandcashequivalentsattheendoftheperiodwere48 million in the same period of 2024[23] - The total cash and cash equivalents at the end of the period were 1,507 million, up from 377millionattheendofthesameperiodin2024[23]−FreecashflowforthethreemonthsendedMarch28,2025,was377 million at the end of the same period in 2024[23] - Free cash flow for the three months ended March 28, 2025, was (0.018) billion, compared to 0.047billionforthesameperiodin2024[27]−AdjustedfreecashflowforthethreemonthsendedMarch28,2025,was0.047 billion for the same period in 2024[27] - Adjusted free cash flow for the three months ended March 28, 2025, was 0.220 billion, up from 0.091billioninthesameperiodlastyear[27]−CashflowprovidedbyoperatingactivitiesforthethreemonthsendedMarch28,2025,was0.091 billion in the same period last year[27] - Cash flow provided by operating activities for the three months ended March 28, 2025, was 0.026 billion, a decrease from 0.095billioninthesameperiodof2024[27]GoodwillImpairment−Thecompanyincurredagoodwillimpairmentof0.095 billion in the same period of 2024[27] Goodwill Impairment - The company incurred a goodwill impairment of 1,830 million for the nine months ended March 28, 2025, with no such impairment recorded in the same period of 2024[20] - The company recognized a goodwill impairment charge of 1.830billionforthethreeandninemonthsendedMarch28,2025,duetoaquantitativeimpairmentanalysis[29]GuidanceandFuturePlans−Thecompanyplanstoimplementpriceincreasesandmanagesupplytomatchdemand[3]−Non−GAAPearningspershareguidanceforthefourthquarterisexpectedtobeintherangeof(1.830 billion for the three and nine months ended March 28, 2025, due to a quantitative impairment analysis[29] Guidance and Future Plans - The company plans to implement price increases and manage supply to match demand[3] - Non-GAAP earnings per share guidance for the fourth quarter is expected to be in the range of (0.10) to 0.15[8]−Grossmarginforthethirdquarterwas22.50.15[8] - Gross margin for the third quarter was 22.5%, down 9.8 percentage points from the previous quarter[5] - Cloud revenue decreased by 21% quarter-over-quarter to 197 million, but increased by 103% year-over-year[6] - The company completed a strategic review, incurring associated expenses, which are not indicative of its ongoing business performance[34]