Businessweek

other devices to store digital data. Portable game devices include advanced features that require memory storage cards and it offers cards that are primarily packaged for the gaming market. The company also sells a line of digital media players with both embedded and removable memory under its Sansa brand with varying combinations of audio and video capabilities. Primary removable card formats for consumer devices include CompactFlash, SD, and microSD. USB flash drives allow consumers to store and transfer files, pictures, and music on keychain-sized devices. Computing: The company provides multiple flash storage devices and solutions for the computing market. It provides SATA SSDs for the client computing market, which includes tablets, notebooks, thin-and-light laptops, and desktop computers. The company also provides enterprise SSDs that are designed for mission critical environments and include solutions optimized for storage in write intensive, read intensive, and mixed use applications. These enterprise SSDs include SAS SSDs for enterprise storage systems, as well as PCIe SSDs, which are designed to accelerate input/output in application servers. Sales Channels The company’s products are sold through the following channels: Original Equipment Manufacturer (OEM): The company’s OEM channel represents sales directly and through distributors to OEMs, system integrators, and value-added resellers who bundle, embed, or integrate its data storage solutions. Its OEM channel addresses various applications, including mobile phones, tablets, notebooks, gaming devices, enterprise storage solutions, servers, and other computing devices. The company also sells its data storage solutions to OEMs that offer its products under their own brand name in retail channels. The company sells to its OEM channel through its direct sales representatives, as well as through independent manufacturers’ representatives. Retail: The company sells its products directly and through distributors to consumer electronics stores, office superstores, photo retailers, mobile phone stores, mass merchants, catalog and mail order companies, e-commerce retailers, drug stores, supermarkets, convenience stores, and kiosks in various locations. It sells to its retail channel through its direct sales representatives, as well as through independent manufacturers’ representatives. Customers The company’s customer includes Apple Inc. Suppliers The company purchases the majority of its NAND flash memory supply through its venture relationships with Toshiba Corporation (Toshiba), which produce and provide the company with memory wafers. Ventures with Toshiba The company holds a 49.9% ownership position in each of Flash Partners Ltd.; Flash Alliance Ltd.; and Flash Forward Ltd. Strategy The company’s strategy includes creating industry-leading storage solutions by utilizing its innovative technology; and driving profitable growth across diversified markets, customers, and channels. Seasonality The company’s revenue is highest in its fourth fiscal quarter (year ending December 2012) due to the holiday buying season. In addition, its revenue is lowest in its first fiscal quarter. Patents and Licenses As of December 30, 2012, the company owned, or had rights to, approximately 2,300 United States patents and approximately 2,200 foreign patents. It had approximately 1,100 patent applications pending in the United States, and had foreign counterparts pending on majority of the applications in multiple jurisdictions. The company has patent license agreements with various companies, including Hynix Semiconductor, Inc. (Hynix); Intel Corporation (Intel); Panasonic Corporation; Renesas Technology Corporation; Samsung Electronics Co., Ltd. (Samsung); Sony Corporation (Sony); and Toshiba. Significant Events In May 2013, Western Digital Corporation and SanDisk Corporation announced that the two companies are collaborating to introduce hybrid storage devices that feature flash memory technology from SanDisk and hard drive technology from Western Digital Corporation. Competition NAND Manufacturers: The company’s primar