Financial Performance - Third quarter revenue was $1.70 billion, down 10% sequentially and down 1% year-over-year[4] - Third quarter GAAP loss was $1.93 billion, including a $1.83 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] - The company expects fourth quarter revenue to be in the range of $1.75 billion to $1.85 billion[4] - Revenue for the three months ended March 28, 2025, was $1,695 million, a slight decrease of 0.6% compared to $1,705 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 $27 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 $0.104 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 $0.178 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 $2,263 million, compared to $398 million for the same period in 2024, primarily due to a goodwill impairment of $1,830 million[20] - Research and development expenses for the three months ended March 28, 2025, were $285 million, slightly up from $277 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 $0.021 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 $0.048 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 $12 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 $48 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 $377 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 $0.047 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 $0.091 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 $0.095 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 $1.830 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] - 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]
Sandisk Corporation(SNDK) - 2025 Q3 - Quarterly Results