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No. of Recommendations: 7
SanDisk (SNDK) is one of the Fab 15 stocks.

For more info, visit http://boards.fool.com/Messages.asp?bid=116473


Company Snapshot Information

SanDisk Corporation. The Group's principal activity is to design, develop, manufacture and market flash storage card products used in electronic systems. The Group's products enable mass market adoption of digital cameras, multimedia cellular phones, USB flash drives and other digital consumer devices. The products are designed with flash memory storage solutions to address the storage requirements of emerging applications in the consumer electronics and industrial/communications markets. The products are used in a number of consumer electronics applications, such as digital cameras, personal digital assistants, portable digital music players, digital video recorders and smart phones. They are also used in industrial and communications applications, such as communications routers and switches and wireless communications base stations. The products are sold in the United States, Australia, Japan, New Zealand, Taiwan, Korea, Singapore, Europe and Hong Kong.


Downloadable 10-K:

2003 - http://ccbn.10kwizard.com/download.php?repo=tenk&ipage=2666161&format=PDF&cik=0001000180

2002 - http://ccbn.10kwizard.com/download.php?repo=tenk&ipage=2075611&format=PDF&cik=0001000180


Defensive & Enterprising Income Statements:

This one was much quicker to do using the spreadsheet. This involved some assumptions about some line items in the balance sheet so some of your numbers will be different but they should be of the same order of magnitude. Wherever possible, I tried being defensive and expensing numbers which may not be necessary. This was especially true when I used the total Contractual Obligations rather than Operating Leases.

So, without further ado, here are the numbers:

SNDK

2003

Earnings Statement Accrual Defensive Enterprising

Revenue 1,079,801 1,079,801 1,079,801
Cost of Sales 641,189 641,189 641,189
------------- ------------- -------------
Gross Profit 438,612 438,612 438,612
Gross Margin 40.6% 40.6% 40.6%

Selling, Marketing, & Admin 66,317 66,317 66,317
General & Administrative 31,057 31,057 31,057
Depreciation and Amortization 0 0 0
Research and Development 84,200 84,200 84,200
Employee Stock Option Expense 0 0 0
------------- ------------- -------------
Total Operating Expenses 181,574 181,574 181,574

Operating Profit 257,038 257,038 257,038
Operating Margin 23.8% 23.8% 23.8%

Investment in Fixed Capital na 44,172 na
Investment in Working Capital na (17,120) na
(R&D Intangibles Reversal) na na (84,200)
(Advertising Intangibles Reversal) na na (5,000)
Total Intangibles Depreciation na na 74,503
Enterprising Interest Expense na na 77,592
Imputed Interest Operating Lease na na (35,748)
------------- ------------- -------------
IETC Adjustments 0 27,052 27,147

Interest Income 8,865 na na
Other Income (17,272) na na
Interest Expense (6,750) (6,750) na
------------- ------------- -------------
Total Non-Operating Income (Expe 15,157 (6,750) 0

Profit Before Tax 241,881 236,736 229,891

Taxes 73,022 151,755 166,984
Effect of Accounting Changes na na na
------------- ------------- -------------
Profit (Loss) 168,859 84,981 62,907
Profit Margin 0 0 0
Shares (Diluted) 171,616 171,616 171,616
EPS (Diluted) 0.98 0.50 0.37

So SNDK is in the upper-right box of the Earnings Power Graph. That's good!
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