srini

there’s this boy who i may have mentioned before (classmate from 3rd grade) who has been on my mind. we met after 11 years and had an amazing night where we spilled story after story to each other. i might have developed feelings for him but that didn’t work out and we drifted apart. a couple of weeks back we began texting again. it’s been quite nice actually. i don’t know if there is anything at all between us. i have been very wrong about these kinds of things in the past so it’s best that i don’t make any kind of assumptions. but i must say that i like how it feels. he is funny and sweet and a regular boy. he is my age and he is the kind of guy that is a good friend to someone. i don’t know how to explain this. he’s not the college football captain who’s a pompous asshole. but he’s normal. i like normal people. they are real and there’s no bullshit. unpretentious and they are there for you.

i don’t know much about him but i do know that he has been successful in ending my numbness. it’s been a year since my ex left and i’ve had a long time to do the things i want to do. i met three other boys, none of whom were interesting enough to even make me want to look back at them. i smile when i receive a text from him and it’s nice to know that i’m capable of feeling something again, apart from being horny. he isn’t in a place where he’s going to get into a relationship because he just got out of one. i don’t think i even expect anything of that sort to even happen. i know this, because i have this gut feeling that it’s going to be a while before i get into a relationship again. and Srini (that’s his name) is someone who i have a crush on.

i think i’m allowed to feel this way now. he makes me happy. i don’t suspect big endings but right now it feels cozy. so for once in my life, i’m not going to try an control this. i’m gonna let it be. just see what happens. it’s just a boy. it’s between him and me. there aren’t stupid extra people who always live to ruin it for you. this time onwards i’m just keeping my personal life personal. and that’s the lesson i’ve learnt.

How the fuck did you find my Facebook?

7:23 am. Hair sprawled out across my pillow, tired eyes, and light starting to drop through the shades on my window, I am awakened by a slight vibrate coming from my phone.
Thinking it’s an alarm of some sort, I pat my hand around and search for my phone, and once I’m past the point where the screen is no longer blinding my eyes, I see it:

It’s fucking srini.

He found my Facebook. He apologized for “being so creepy before” and stated he wanted to take me out.

I swear to god. Hopefully this time you’ll take the fucking hint by me blocking you. This fellow is the most aggressive and obsessive man I’ve ever had to deal with, and he’s making me extremely uncomfortable.

MIT researchers mount attacks on Tor, can identify hidden services with 88% accuracy

Mermaid 3000 Feet Deep Off the Coast of Greenland Mermaid Caught on Film

For more than a decade, people living under repressive regimes have used Tor to conceal their Web-browsing habits from electronic surveillance, and websites hosting content that’s been deemed subversive have used it to hide the locations of their servers.

“Anonymity is considered a big part of freedom of speech now,” says Albert Kwon, an MIT graduate student in electrical engineering and computer science and one of the paper’s first authors.

Traffic fingerprinting Kwon devised an attack on this system with joint first author Mashael AlSabah, an assistant professor of computer science at Qatar University, a researcher at QCRI, and, this year, a visiting scientist at CSAIL; Srini Devadas, the Edwin Sibley Webster Professor in MIT’s Department of Electrical Engineering and Computer Science; graduate student David Lazar; and QCRI’s Marc Dacier.

This Post was identified, curated and sumarized by an AI bot living here @ WingzTV.

I first noticed this article on csail.mit.edu

We AIs track evvveerrrything. Share an article today and ill convince my friend to sort out your cat addiction for you.

Veooz Brings Easy Access to Real Time News in English and Indian Languages

HYDERABAD, India, July 29, 2015 /PRNewswire/ —

– Breaking News, Relevant Stories and In-depth Coverage in Your Preferred Language

– Free App From Google Play Store and Apple Store

Announced today was the launch of Veooz, a revolutionary platform that brings breaking news and relevant stories selected from thousands of local, global news and social media sources using patented algorithms. Founded by Srini Koppolu, Ex-MD Microsoft India Development center, Professor Vasudeva Varma, Dean R&D IIIT-Hyderabad, Dr. Prasad Pingali, experts in search, machine learning and natural language processing (NLP) – Veooz has the unique ability to provide in-depth coverage on stories with related news, pictures, videos and live buzz. Veooz is an easy to use news app available in many languages, for many countries, and can be personalized based on user interests.
(Logo: http://photos.prnewswire.com/prnh/20150729/10127723)

“With a vision to provide easy access to relevant news to the widest audience across the world, we are making the Veooz app available in 10 languages in India along with the English versions for 40 countries,” said Srini Koppolu, Founder CEO. “Majority of the people from India can use the app in their language and stay up-to-date with important stories,” he added.

Veooz is the only app that enables users to experience the stories in many ways. They can skim through the headlines, read a short summary, or the full story. Using the 360 feature, they can get in-depth coverage with related stories, pictures, videos, and live buzz. Veooz has the unique capability to pull ‘the buzz’ related to a story, filter out noise and show posts which are meaningful and/or from influential people.

With more than 100,000 topics to choose from, users can follow general topics such as technology, business, sports, entertainment, fashion, travel or follow specific celebrities, companies, products, cities, hashtags and more. Veooz personalization engine will custom create the real time news feed with important stories on the topics a user follows.

“Veooz is powered by a highly scalable platform that continuously discovers and analyses stories from thousands of news, magazine and blog sources as well as millions of social media posts, pictures, videos, and selects relevant stories using heuristics based on news and social signals,” said Prasad Pingali, Founder CTO. “Using patented algorithms, auto-curated feeds are generated in real time for 40 countries, 2000 cities, 100k topics,” he added.

Key features of Veooz

  • Available in English, Hindi, Telugu, Tamil, Kannada, Malayalam, Marathi, Gujarati, Bengali and Punjabi
  • Only product for real time news of 40 countries, 2000 cities and 100,000 topics
  • Gives option to read summary or full story
  • Only product that shows related stories, videos, pictures and social media buzz

Veooz is a free service that is accessible through its website simply by clicking here. Users can also download the Veooz app on Google Play for Android phones or on Apple iTunes for iPhones.

Media Contact:
Prasad Pingali,
prasad@veooz.com,
Veooz Labs Private Limited

SOURCE Veooz Labs Private Limited

Veooz Brings Easy Access to Real Time News in English and Indian Languages was originally published on

Veooz Brings Easy Access to Real Time News in English and Indian Languages

Veooz Brings Easy Access to Real Time News in English and Indian Languages

HYDERABAD, India, July 29, 2015 /PRNewswire/ —

– Breaking News, Relevant Stories and In-depth Coverage in Your Preferred Language

– Free App From Google Play Store and Apple Store

Announced today was the launch of Veooz, a revolutionary platform that brings breaking news and relevant stories selected from thousands of local, global news and social media sources using patented algorithms. Founded by Srini Koppolu, Ex-MD Microsoft India Development center, Professor Vasudeva Varma, Dean R&D IIIT-Hyderabad, Dr. Prasad Pingali, experts in search, machine learning and natural language processing (NLP) – Veooz has the unique ability to provide in-depth coverage on stories with related news, pictures, videos and live buzz. Veooz is an easy to use news app available in many languages, for many countries, and can be personalized based on user interests.
(Logo: http://photos.prnewswire.com/prnh/20150729/10127723)

“With a vision to provide easy access to relevant news to the widest audience across the world, we are making the Veooz app available in 10 languages in India along with the English versions for 40 countries,” said Srini Koppolu, Founder CEO. “Majority of the people from India can use the app in their language and stay up-to-date with important stories,” he added.

Veooz is the only app that enables users to experience the stories in many ways. They can skim through the headlines, read a short summary, or the full story. Using the 360 feature, they can get in-depth coverage with related stories, pictures, videos, and live buzz. Veooz has the unique capability to pull ‘the buzz’ related to a story, filter out noise and show posts which are meaningful and/or from influential people.

With more than 100,000 topics to choose from, users can follow general topics such as technology, business, sports, entertainment, fashion, travel or follow specific celebrities, companies, products, cities, hashtags and more. Veooz personalization engine will custom create the real time news feed with important stories on the topics a user follows.

“Veooz is powered by a highly scalable platform that continuously discovers and analyses stories from thousands of news, magazine and blog sources as well as millions of social media posts, pictures, videos, and selects relevant stories using heuristics based on news and social signals,” said Prasad Pingali, Founder CTO. “Using patented algorithms, auto-curated feeds are generated in real time for 40 countries, 2000 cities, 100k topics,” he added.

Key features of Veooz

  • Available in English, Hindi, Telugu, Tamil, Kannada, Malayalam, Marathi, Gujarati, Bengali and Punjabi
  • Only product for real time news of 40 countries, 2000 cities and 100,000 topics
  • Gives option to read summary or full story
  • Only product that shows related stories, videos, pictures and social media buzz

Veooz is a free service that is accessible through its website simply by clicking here. Users can also download the Veooz app on Google Play for Android phones or on Apple iTunes for iPhones.

Media Contact:
Prasad Pingali,
prasad@veooz.com,
Veooz Labs Private Limited

SOURCE Veooz Labs Private Limited

Read more: https://www.news-pr.in/veooz-brings-easy-access-to-real-time-news-in-english-and-indian-languages.html

Intel-Micron Talk: What to Expect Today, Per Summit Research

Shares of Intel (INTC) are up 36 cents, or 1.3%, at $28.71, while partner Micron Technology (MU) is up 19 cents, or 1%, at $18.31, in advance of a press conference the two are holding at noon today, to disclose … something. Announced yesterday, the live webcast can be reached on the companies’ joint website. Yesterday we got one view, from Mehdi Hosseini with Susquehanna Financial Group, who has a “Positive” rating on Micron stock, and who wrote “ we do not rule out some form of closer relationship between Micron and Intel and to be announced.” This morning, Srini Sundararajan of Summit Research, who has a Buy rating on Micron, and a $34 price target, writes that probably the announcment “is designed to update investor base on 3D NAND and perhaps on spin-torque memory.” He adds, “Spoiler Alert: We think Micron will at least imply that they will now spend at least 80% or at least a high percentage of their NAND capex on 3D NAND going forward, up from 20%,” which is a reference, he notes, to a statement by Micron last year that they would spend 30% of their capital expenses on something other than NAND flash memory, and not DRAM, either. “MU also said that roughly 30% (up to $1200M) of this CapEx will go towards ‘non-supply-expanding investments,’ i.e. not DRAM or NAND but improvements and emerging memory,” writes Sundararajan. Now, writes Sundararjan, Micron may be shifting more money to the 3-D version of NAND, according to “chatter” he’s picked up: a) based on pressure from investors due to its stock price’s laggard performance and b) based on coaxing from Intel……. ……Micron might devote more of its capex to NAND going forward, perhaps for F16 from the 20% mentioned above, to what we think will be closer to ~40% of the total , with as much as 80% of it toward 3D NAND. The webcast will likely focus on Intel- MU’s 3D NAND architecture. A quick review: unlike Samsung, SK Hynix and Toshiba, who use charge trap flash architecture, Intel-MU plans to use floating gate and air gaps – and this architecture uses an oxide-poly-oxide stack. Intel-MU will, we think, also say that floating gate has better leakage characteristics meaning that the data will last longer. In essence, Micron and Intel want their investors to know that they are developing a better mouse trap. We agree.

New Platform Veooz Delivers High-Quality, Tailored News Users Crave and Will Want to Read

HYDERABAD, India, July 27, 2015 /PRNewswire/ –

Whether You’re a ‘News Junkie’ or Just Someone who Likes to Stay Informed, Veooz, a Revolutionary News and Social Media Aggregator Platform, is Transforming how News is Delivered to Millions of People all Over the World 

The way news is reported and consumed is constantly changing, thanks to the booming growth of the Internet, mobile and social media.

“Today, consumers play as much a role in news content creation and curation as do the reporters and journalists. They create, upload, share, like, agree, disagree on various stories and opinions on the Internet. This makes it hard to find everything about a story at one place,” stated Srini Koppolu, Veooz CEO and co-founder.

Veooz is on a mission to change that. Unlike similar products on the market, Veooz is the only platform that enables users to experience stories in multiple ways all at one place. Users can easily skim through headlines, read a short summary or get multiple perspectives of the story. Using the 360 feature, they can also get related stories, pictures, videos and even see live social media buzz related to the story.

“Our platform has the unique capability to pull 'the buzz’ related to a story, filter out noise and show posts which are meaningful and/or are from influential people,” stated Prasad Pingali, CTO of Veooz.

From the millions of articles, Veooz presents users with the right mix of stories in their feeds based on their location and interests. It presently supports 40 countries and 2,000 cities. It is also available in multiple languages.

This revolutionary new platform is a near real-time engine that continuously looks for new content 24/7 on the web. To deliver the best content possible, Veooz only shows stories to users after there is reasonable evidence that it is gaining momentum on social networks like Facebook, Twitter, LinkedIn and more.

With more than 100K topics to choose from, users can follow general topics such as technology, business, sports, entertainment or specific topics such as celebrities, locations, companies, products, occupational interests, hashtags and more.

Veooz is a free service that is accessible through its website simply by clicking here. Users can also download the Veooz app on Google Play for Android phones or on Apple iTunes for iPhones.

SanDisk (SNDK) Earnings Report: Q2 2015 Conference Call Transcript

The following SanDisk conference call took place on July 22, 2015, 05:00 PM ET. This is a transcript of that earnings call: Company Participants

  • Jay Iyer; SanDisk Corporation; IR
  • Sanjay Mehrotra; SanDisk Corporation; President & CEO
  • Judy Bruner; SanDisk Corporation; EVP of Administration & CFO
Other Participants
  • John Pitzer; Credit Suisse; Analyst
  • Srini Sundararajan; Hambrecht & Summit; Analyst
  • Timothy Arcuri; Cowen and Company; Analyst
  • Mark Delaney; Goldman Sachs; Analyst
  • Monika Garg; Pacific Crest Securities; Analyst
  • Mehdi Hosseini; Susquehanna Financial Group; Analyst
  • Mark Newman; Bernstein; Analyst
  • Joe Moore; Morgan Stanley; Analyst
  • Craig Ellis; B. Riley & Co.; Analyst
MANAGEMENT DISCUSSION SECTION Operator: Good day and welcome to SanDisk Corporation second-quarter 2015 financial results conference call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Jay Iyer. Please go ahead, sir. Jay Iyer (IR): Thank you, [Shaneal], and good afternoon, everyone. With me on the call today are Sanjay Mehrotra, President and CEO, and Judy Bruner, Executive Vice President of Administration and CFO. In a moment, we will hear remarks from both of them, followed by Q&A. Before we begin, please note that any non-GAAP financial measures discussed during this call as defined by the SEC in Regulation G will be reconciled to the most directly comparable GAAP financial measure. The reconciliation of our financial results is available in the press releases shared this afternoon. A presentation containing supplemental information and non-GAAP to GAAP reconciliation tables, including for all applicable guidance, will be posted on our investor relations Web site at sandisk.com/ir after the prepared remarks. This guidance is exclusive of any one-time transactions and does not reflect the effect of any acquisitions, divestitures or similar transactions that may be completed after July 22, 2015. During our call today, we will make forward-looking statements that refer to expectations, projections, beliefs and other future events. Please refer to today’s press release, the presentation that will be posted on our investor relations Web site and our SEC filings, including the most recent 10-Q, for more information on the risk factors that could cause actual results to differ materially from those expressed in these forward-looking statements. SanDisk assumes no obligation to update these forward-looking statements which speak as of today. With that I’ll turn the call over to Sanjay. Sanjay Mehrotra (President & CEO): Thank you, Jay, and good afternoon, everyone. Our second-quarter results benefited from more favorable performance than expected in enterprise and retail. We are also making good progress in strengthening our product roadmap and customer engagements. For the second half of 2015, we expect the industry environment to remain stable and look forward to delivering sequential revenue and profit growth as we continue to make progress in enhancing our execution. In our April conference call, we discussed the pending re-qualification of a new embedded component for a customer’s use in their client SSD application. We have completed the SanDisk internal validation of this new product and the qualification work on the customer side is progressing well. We expect to complete the full customer re-qualification process in the third quarter and begin revenue shipments soon thereafter. In enterprise SSDs, our Fusion-io revenue grew sequentially in Q2. We also announced our next-generation Fusion ioMemory PCIe application accelerators based on our 1Y NAND technology, enabling a significantly lower price point for our customers. We believe that the more competitive pricing enabled by our captive memory-based PCIe products will open up new workloads for this product category. We are currently shipping these captive NAND-based PCIe solutions through distribution channels and customer qualifications at several OEMs are expected to be completed in the second half of this year. Another factor that we believe will stimulate the future expansion of the enterprise PCIe market is the expected broadening deployment of NVMe infrastructure and availability of NVMe PCIe solutions in 2016 and 2017. In addition, PCIe flash solutions offer higher performance than SATA SSDs, due to the lower latency and higher bandwidth of PCIe. We plan to begin addressing the NVMe PCIe market opportunity with a new offering available for qualification in mid-2016. To increase SanDisk’s penetration in the enterprise SATA market, I am pleased to report that we introduced the CloudSpeed Eco Gen II, a highly competitive 15 nanometer-based 2 terabyte SATA SSD in the second quarter. The solution is now in qualification at multiple hyperscale customers with revenue contribution expected to begin later this year. Our enterprise SAS SSDs sales performed well during the quarter, driven by better-than-expected demand for several of our products. Our 4 terabyte Optimus Max SAS SSD was the first of its kind in the market and is making a compelling case for the replacement of 15K and 10K RPMenterprise HDDs. The Optimus Max SSD has become an important high-capacity solution for one of our OEM customer’s All Flash Array offerings. Several other OEM and hyperscale customers are now qualifying our 4-terabyte enterprise SAS SSD because they see the value of reducing their total cost of acquisition and ownership by utilizing this highest capacity solution. We are developing our next-generation 15 nanometer-based 12 gig SAS SSD with higher capacity and performance, and expect to introduce that solution to market in 2016, with revenue contribution starting in late 2016. We are excited about the progress we are making with our next-generation converged platform for enterprise products, which brings the best technologies and IP together from our various acquisitions. This converged platform will be heavily leveraged across multiple product families in the enterprise segment, and allow us to offer market-leading products integrated with our next-generation 3D NAND memories. Given the long engineering development cycle typically associated with such major programs, we expect to start sampling products based on this new architecture in 2017. While we expect to continue to grow our enterprise revenue over the next couple of years, we aim to rapidly increase our market momentum once this converged architecture is introduced into volume production. Turning to our enterprise system and software solution offerings, since our announcement of our breakthrough InfiniFlash platform in March this year, we have been building up a strong pipeline of potential customers, many of whom have started proof-of-concept engagements with us. Customers are excited to see the potential of this InfiniFlash platform, as it enables them to rethink how flash can structurally improve their data center capabilities when deployed at petabyte scale. Our InfiniFlash platform allows customers to replace hard disk drive-based solutions with our all-flash solution. InfiniFlash features excellent performance and the industry’s highest density of flash at a breakthrough price point, where it competes with HDD-based solutions in both total cost of ownership, as well as upfront acquisition cost, while solving a lot of challenges customers are facing today with scale-out deployments. As the megatrends towards cloud computing, open source software and data analytics gather momentum, InfiniFlash is the solution at the intersection of these important trends, and we are excited about its potential to accelerate flash adoption in data centers over the next several years. Switching to client SSDs, traction for our solutions increased with PC OEMs and in the channel. We announced and started shipping our 15-nanometer X2 client SSDs to the channel and began qualification of these drives with our OEM customers to whom we expect to begin revenue shipments in the second half of 2015. From a market perspective, although the overall PC environment is weak, we believe OEM customers are rapidly increasing their use of SSDs due to the many benefits we have outlined in the past. For example, in the corporate market served by OEMs, CIOs have embraced the benefits of SSDs, resulting in an SSD attach rate to corporate notebooks that is expected to approach 40% by the end of 2015. Decline in unit prices of 128 gigabyte and 256 gigabyte SSDs continues to reduce the gap when compared to HDD unit prices, with the 128 gigabyte drive approaching cost parity with low-capacity HDDs. This inflection point is expected to further cause the consumer notebook segment, which today has a low SSD attach rate of less than 15%, to accelerate adoption of SSDs. We are well positioned to benefit from this trend with our new product offerings such as the SanDisk Z400S, based on 15 nanometer X2 technology, and our 1Y X3 based SSDs, which offer a compelling value proposition for PC OEMs. We are excited to address this growth opportunity ahead of us, as we expect SSDs will rapidly replace HDDs in laptops and desktops. Moving on to our mobile embedded product portfolio, we completed the qualification and began shipments of our 15 nanometer X3 customized solution as planned. We have also been working on another new custom embedded 15 nanometer X3 solution that is in the late stages of customer qualification, and expect to be shipping this new product in significant volume in the third quarter. Within the iNAND product family, we are expanding the adoption of our solutions. Our 1Y X3 based iNAND products, which are designed to meet the requirements of high-performance mobile platforms with our innovative Smart SLC technology, are expected to ship to multiple mobile OEMs in the third quarter. Additionally, just last week at Mobile World Congress in Shanghai, we introduced an iNAND product built on 15 nanometer X3 that increases embedded capacity to 128 gigabytes, providing greater performance and cost benefits to mobile OEMs. We expect to qualify and ship these iNAND products to key mobile customers in the second half of 2015. We are also gaining traction in newer flash markets, including connected home, automotive storage, industrial and the Internet of Things. In connected home, cable operators are beginning to use our flash storage solutions in set top boxes to improve delivery of high-demand content across their networks. Automakers continue to add computational power to their cars as a means of providing infotainment differentiation and advanced driver-assistance capabilities. As the automotive industry marches towards a future that will include autonomous driving, storage requirements will grow immensely and we expect to be a leading provider of innovative solutions to this industry. The IoT market is still in its early stages of development; however, we are excited to have been selected by some leading solution suppliers for inclusion in their IoT reference designs, which we believe will lead to expanding opportunities for flash. In retail, we have made progress recovering from our temporary share loss experienced in Q4 2014 and Q1 2015, which was due to the supply constraints we discussed in earlier calls. Overall, retail had a good second quarter, driven by demand for imaging cards and SSDs. In June, we introduced a new SanDisk product category with the SanDisk Extreme 900 and SanDisk Extreme 500 external SSDs at 1.92 terabytes and 480 gigabytes of capacities, respectively. With no moving parts and significantly faster speeds than portable HDDs, these rugged external SSDs are the perfect solution for photographers and videographers on the go. To summarize my comments on products, we have made considerable progress towards addressing our roadmap. Many of our new products are now at various stages of qualification, and we expect our portfolio to continue to strengthen in 2015 and throughout 2016 as well. From a fab manufacturing perspective, our 15 nanometer technology continued ramping through the quarter, with bit output exceeding 1Y volume for Q2. The mix of X3 remained at more than 50% of total bits sold. We also completed the planned 5% wafer capacity expansion for 2015 during the second quarter, and we believe the inventory challenges we discussed on the last two calls are now behind us. In 3D NAND, we have begun our equipment purchases to support the commencement of pilot production of our 48-layer architecture in the second half of 2015. We are on track to begin using the pilot line output for product samples in 2015, and we continue to expect 3D NAND product sales to begin in 2016. The 48-layer technology provides an excellent combination of increased density, higher performance and lower power compared to 2D NAND. We plan to implement our 3D NAND first in high-capacity removable products, then client SSDs and embedded solutions, followed by enterprise SSD solutions, which have longer design and qualification periods. From a supply bit growth rate standpoint, for 2015, we expect the industry’s year-over-year supply bit growth to be somewhat above our previous estimate of approximately 40%, and we expect our captive bit growth to be in line with the industry. For 2016, our latest estimate is that both the industry and SanDisk supply bit growth rates will be lower than in 2015. Some of you may be wondering about the Toshiba announcements from yesterday. While there is some change to the management structure of Toshiba’s semiconductor business, we continue to believe that this will not impact the strategy, investments and execution of the joint venture and that NAND remains a high priority for Toshiba. To conclude, we are making progress in strengthening our product portfolio and improving our execution, and we are driving vigorously to regain our overall business momentum. We look forward to delivering improved results in the second half of 2015. I will now turn the call to Judy for the financial discussion. Judy Bruner (EVP of Administration & CFO): Thank you, Sanjay. Before I begin, I would like to add to Sanjay’s comments on Toshiba and mention that while we are still evaluating the findings of the investigation, we do not expect Toshiba’s announcement yesterday to have any impact to our financial results. I will now review our Q2 results and then discuss our outlook, which remains within the range of expectations we outlined in April. Our second-quarter revenue of $1.24 billion was down 7% sequentially and down 24% year over year. Our client SSD revenue declined as expected, due to the end of life during Q1 of a program with a major customer, while our client SSD revenue with other OEM customers increased nicely from Q1 to Q2. Our enterprise revenue also declined sequentially, for the reasons we discussed on our April call. Embedded revenue was down sequentially in Q2, due to the seasonality of certain embedded products, while our removable revenue increased sequentially driven by seasonality and share gains. By channel, our retail revenue increased 4% sequentially and represented 39% of our Q2 revenue mix, while commercial revenue declined 13% sequentially and represented 61% of our revenue mix. Our gigabytes sold were down sequentially by 1% and down year over year by 6%, with the year-over-year decline driven largely by rebuilding of our inventory levels, combined with the loss of the client SSD program at a major customer, as we have previously discussed. The decline in our blended ASP per gigabyte was more modest than in Q1, with a sequential decline of 6% and a year-over-year decline of 21%. Our all-in cost per gigabyte declined 4% sequentially and declined 10% year over year. Sequentially, the key drivers of cost reduction were a weaker yen, a higher mix of 15 nanometer memory and lower inventory-related charges, with these factors partially offset by a higher mix of non-captive memory. On a year-over-year basis, cost reduction benefited from technology transition, a higher mix of X3, non-memory cost reductions and a weaker yen, with these benefits partially offset by higher inventory reserves, Malaysia factory startup costs and a higher mix of non-captive memory. Our non-GAAP gross margin of 42% was better than we had forecasted due primarily to product mix, with a stronger mix of retail and enterprise products and a lower mix of embedded MCP products. The yen-to-dollar exchange rate in our captive memory cost of sales was JPY117, and non-captive memory was used in 6% of our sales, compared to 2% in Q1 and 1% in Q2 of last year. Our Q2 non-GAAP operating expenses of $327 million were sequentially lower by $48 million, with the reduction stemming from lower charges for restructuring and other, a reduction in force, which was largely completed in the second quarter, and some engineering project expenses which shifted from the second quarter to the second half. Our Q2 non-GAAP operating margin, inclusive of the restructuring and other charges, was 15%, consistent with the Q1 non-GAAP operating margin. In Q2, our non-GAAP other income of $10 million included $7 million of one-time gains related to foreign exchange and venture investments. Our Q2 non-GAAP tax rate remained at 32%, while our Q2 GAAP tax rate was 11%, due to a discrete benefit from a tax audit settlement. The reduction in our non-GAAP diluted share count was driven by a full quarter weighting of our Q1 share repurchases, a partial weighting of the 3.7 million shares repurchased in Q2, and elimination of dilution from the 2017 warrants related to our convertible debt, as the warrants were not in the money for Q2. Turning to cash flow and the balance sheet, our share of flash venture fab investments during Q2 was $233 million, and non-fab capital investments were $96 million. For these total gross capital investments of $329 million, we utilized cash of $80 million, with the difference funded by new joint venture equipment leases of $97 million and joint venture working capital. Our off-balance sheet joint venture equipment lease guarantees stood at $636 million at the end of Q2. Our inventory increased sequentially by $68 million, and on a petabyte basis, the inventory reflects approximately 12 weeks of forward supply. We expect to continue holding inventory at approximately this level of weeks in order to provide adequate supply for our diverse products and customers. For Q2, cash flow from operations was $29 million, compared to $309 million in Q1 and $241 million in Q2 of 2014. The primary drivers of the sequential decline in cash flow from operations were the seasonality of our accounts receivable, which is typically a source of cash in Q1 and a use of cash in Q2, coupled with the planned increase in our inventory levels. On a year-over-year basis, the decline in cash flow from operations was driven primarily by the decline in net income and the growth in inventory. Free cash flow for Q2 was a negative $52 million, and we spent $250 million on share repurchases and $63 million on the quarterly dividend. Our cash ended the quarter at $4 billion on a gross basis and $1.5 billion, net of debt. We expect our cash flow from operations to be at a significantly stronger run rate in the second half compared to Q2, and we currently plan to continue share repurchases in the second half of 2015. Now I’ll turn to our outlook. Our current estimate for 2015 revenue remains within the range of $5.4 billion to $5.7 billion that we provided in April. We expect the majority of our sequential second-half revenue growth to come from mobile embedded products, with a significant portion of this revenue forecasted on the cusp between Q3 and Q4. The ramp timing of several mobile embedded products, along with the market success of our customers’ mobile products, are key variables in where we land in our forecasted 2015 revenue range. For the third quarter, we estimate our revenue to be in the range of $1.35 billion to $1.45 billion. We continue to expect non-GAAP gross margin for the second half of the year to be in the range of 40% to 43%. Compared to Q2, we expect the key factors impacting second-half gross margin to be an increased mix of mobile embedded sales, which will have a negative impact on gross margin, and a slightly weaker yen-to-dollar rate, coupled with higher sales volume, which will have a positive impact. For Q3, we expect the yen-to-dollar rate in cost of sales to be approximately JPY120. We expect non-GAAP operating expenses in Q3 to be between $335 million and $345 million, and continue to expect full-year 2015 non-GAAP operating expenses to be approximately or slightly below $1.4 billion. For the second half, we expect our non-GAAP other income and expense to be approximately break-even and our non-GAAP tax rate to remain at approximately 32%. Our 2015 fab and non-fab capital investment forecast remains at $1.4 billion, with $709 million purchased in the first half. And our 2015 forecasted cash usage for capital investments remains at approximately $500 million, with $190 million used in the first half. To conclude my remarks, we look forward to delivering sequential growth in revenue and earnings in the second half of the year, as we continue to focus on improving our execution and strengthening our product portfolio. We’ll now open the call for your questions. Jay Iyer (IR): Thank you, Judy. Thank you, Sanjay. [Shaneal], can we open up the call for questions, please? And if I can ask the callers to limit themselves to one question and a brief follow up, I would be very appreciate it. And we will do the Q&A until about 3:00. QUESTIONS & ANSWERS Operator: (Operator Instructions) And we’ll take our first question from Ambrish Srivastava with BMO. Unidentified Participant: Hi, this is Gabrielle calling in for Ambrish, thanks for taking my question. So you mentioned in the call that earlier that you said you expect the big growth in 2016 to be lower than 2015, so what are your assumptions in terms of the wafer growth the X3 makes and also from a tech transition? And also what percentage of the 3D NAND wafers do you expect in 2016 for SanDisk versus the industry? Judy Bruner (EVP of Administration & CFO): Let me start that and give you some of those assumptions. First of all our wafer capacity today at SanDisk is just shy of 3 million wafers per year. And that’s inclusive of the 5% increase in wafer capacity that we just added in 2015. We have not made a final decision yet for 2016 as to new wafer capacity. However, it is most likely that we will add a small amount of new wafer capacity likely in the single-digit percentage range, similar to the last two years. And most likely that that will be a mix of 2D wafers and 3D wafers. In terms of X3, our X3 mix remains over 50% of our sales, and we expect that our X3 mix will increase, both due primarily to our mobile embedded products as well as our client SSD products. And that’s factored into our expectations as well. And of course we are planning to begin the transition of some of our existing capacity to 3D in 2016. In terms of percent of capacity that is on 3D, I believe that was another of your questions, our expectation is for the industry that the industry will likely exit 2016 in the range of 15% to 20% of wafer capacity on 3D. And our expectation is that we will likely be around the low end of that range. Unidentified Participant: Okay, thanks. That’s very helpful. And on the – as a follow up, your client SSD was down to about 10% of total, much lower than before. And would you call this a bottom, and do you expect the revenues to improve from here? Judy Bruner (EVP of Administration & CFO): We do expect to increase our client SSD revenue from here, yes. As I mentioned we did see increases with our other OEM customers in the second quarter, and we expect to grow that revenue and grow our share in client SSD going forward. Operator: And we’ll take our next question from John Pitzer with Credit Suisse. John Pitzer (Analyst - Credit Suisse): Sanjay I guess my first question, I know it’s a little bit premature because it doesn’t come up until next year, but I’m curious as to how you think we should think about the royalty renegotiation scheduled for next year with Samsung, especially as the industry moves toward 3D? Sanjay Mehrotra (President & CEO): We don’t comment on loyalty negotiations for future years, of course each renewal of the license does require a new set of negotiations and they tend to be over extended period of time. And in the past, in certain cases, there has been litigation involved as well. So beyond that I cannot comment at this point. John Pitzer (Analyst - Credit Suisse): I appreciate that color. And then Sanjay, clearly the back half of the year is being helped by mobile, I’m wondering if you can help us better understand the enterprise market for the back half of the year, and what kind of milestones should we be thinking about as you guys progress towards the goal of increasing your exposure there and your profitability there? Sanjay Mehrotra (President & CEO): With respect to the enterprise market, you know we are very much focused on strengthening our product portfolio and rebuilding our execution in that area. I’m pleased with the progress that we are making in the SATA area where our 15 nanometer 2 terabyte SATA that’s in the qualification stages with multiple customers and we expect revenue contribution later in the year from that solution. Similarly with PCIe, continue to make good progress with our 1 Y nanometer PCIe solution with captive memory, and those are in qualifications, and also all of the qualifications with various customers but also starting to ship in the channel. So good progress there as well. And I spoke about the SAS solutions as well. So in Q2 we did better than what we had expected on enterprise. In Q3, we may be flattish to somewhat down in enterprise. Q4, I would expect the revenue to increase again. And we have said before that in 2015, overall, we expect year-over-year increase in enterprise revenue compared to 2014, and I expect year-over-year increase in enterprise revenue in 2016 as well. So we continue to advance our product solutions roadmap making good progress there. This work will continue through 2016 timeframe as well. And I talked about our future converged platform in details in my prepared remarks as well. And enterprise really remains an exciting opportunity for us. Going from a 4 billion TAM in the industry last year to we project about 8 billion TAM in 2018 timeframe. And is certainly the long-term play for us and we’re absolutely making the investments and making good progress toward our objectives of regaining momentum and working toward strong leadership position in this market. John Pitzer (Analyst - Credit Suisse): That’s helpful. So maybe I could sneak one more in for Judy. Could you just talk about a little bit the inventory direction going into the September quarter? Is the revenue growth all coming from an accelerating bit growth or do you expect inventory draw down into the back half of the year? If you could help me understand that dynamic, that’d be helpful. Judy Bruner (EVP of Administration & CFO): Sure. Well, as we mentioned we just completed the incremental wafer capacity so that will provide more inventory for us in the second half. And we expect to continue to hold our inventory at the higher end of the 10 to 12-week range that I’ve talk about in the past. We’re doing that consciously because we want to ensure that inventory shortages don’t impair our ability to gain share and to improve our financial performance. And that also plays into us purchasing some increased amount of non-captive. We recognize that that non-captive weighs somewhat on our gross margin. But we think that’s the right tradeoff right now as we’re trying to improve our financial performance for the long term. So I expect inventory will remain at higher end of that 10 to 12-week range. John Pitzer (Analyst - Credit Suisse): Helpful. Thanks a lot, guys, and congratulations on turning the corner. Sanjay Mehrotra (President & CEO): Thank you. Operator: And we’ll take our next question from Srini Sundararajan with Hambrecht & Summit. Srini Sundararajan (Analyst - Hambrecht & Summit): Sanjay, what kind of postmortem analysis did you do on your 1Q and 2Q? And what are the changes that you’ve implemented so that you don’t get surprised in the future? Sanjay Mehrotra (President & CEO): So we discussed this at length in our April call. We went through the various product issues in terms of execution, as well as in terms of some of the market shift that we experienced. And we absolutely are addressing those. And I reported on some of the progress we are making in those areas in terms of enhancing our execution and strengthening our product roadmap, whether it be with respect to the requalification effort that’s going on with customized solutions for SSD applications, albeit for SAS, 12 gig, road next generation 15 nanometer roadmap or 2 terabyte SATA 15 nanometer drives or next generation PCIe solutions. So we have really the whole Company is very much (inaudible) with the leadership really very much targeting rebuilding our momentum here with solid execution. And we talked about the organization changes that we made in the last April call. And I believe those changes are already starting to pave roads. Srini Sundararajan (Analyst - Hambrecht & Summit): Thank you. And as a follow up, do you have any plans to develop UFS format NAND? And for eMCP, do you propose to have agreements in place or you will mainly depend on third parties? Sanjay Mehrotra (President & CEO): With respect to UFS, as you know that it is an interface that is being used in Samsung high-end phones. And at this point we are not seeing yet broader adoption beyond that. However, this is a trend that we continue to monitor carefully. We are offering today eMMC solutions, they’re [discrete] eMMC as well as eMCP solutions and of course customized solutions for embedded mobile market. And this is the best part of that market. We are monitoring the UFS trends. UFS does tend to have cost and certain power considerations but we’ll be adequately prepared to add to the UFS market as it builds up in the future. But we are really still as I mentioned continuing to evaluate this market opportunity for the future. And with respect to eMCP, we have said several times in the past that we do address this market in a pretty strategic fashion and we do have a couple of sources of DRAM supply to address this. And this is certainly an important market for low end and mid range budget smartphones. Srini Sundararajan (Analyst - Hambrecht & Summit): Thank you so much and congratulations on a good quarter. Operator: We’ll take our next question from Timothy Arcuri with Cowen and Company. Timothy Arcuri (Analyst - Cowen and Company): I had two. I guess first of all, Judy, is there some way that you can strip out the effect of the rise in inventory as it relates to gross margin? So what would gross margin have been had inventory been flat, say? Judy Bruner (EVP of Administration & CFO): I’m not sure that I can answer it quite that way. But I would tell that you we’re making progress in terms of inventory related charges, and our inventory related charges are lower than they were in the last quarter. Of course, carrying more inventory does weigh somewhat on gross margins, but the bigger factor, as I already mentioned, is that we are carrying and using a higher amount of non-captive memory in that inventory. So that’s the bigger factor in terms of impacting the gross margins. Timothy Arcuri (Analyst - Cowen and Company): Got it, thank you. And then I know you’ve previously said that your full year of cost decline would be in the range of down 15% to 25%. Can you talk about that again? Do you still feel good about that? And maybe are you – at this point since you’re halfway through the year, do you feel like you’re going to be toward the lower end of that range or toward say the higher end of that range for the year? Thanks. Judy Bruner (EVP of Administration & CFO): I do still expect that for the full year of 2015 we will be in that range of 15% to 25%. And I expect that in the second half of this year, we will have a higher contribution from 15 nanometer and also from X3 which will both be helpful in our cost reduction statistic for the full year. Timothy Arcuri (Analyst - Cowen and Company): Thank you so much. Operator: And we’ll take our next question from Mark Delaney with Goldman Sachs . Mark Delaney (Analyst - Goldman Sachs): For the first question I was hoping we could revisit the enterprise SSD topic. And you did a good job of outlining a number of the product qualifications that you have underway. And I understand the prior target to hit $1 billion of revenue enterprise SSD was pushed out. As you guys look into 2016, given all the engagements that you have underway, do you think $1 billion is a revenue level that you can reach in 2016 now? Or is it still going to take some – a longer period of time potentially to get back to that level? Sanjay Mehrotra (President & CEO): We are not putting a specific timeframe for $1 billion target. We certainly target to achieve it in the future. In 2016 as I said previously, we definitely expect year-over-year revenue growth in enterprise business as well. As we continue to rebuild momentum in our enterprise roadmap here and continue to broaden our engagement, this is certainly an area where we will continue to grow in the longer term. And this is an exciting growth opportunity for us. Mark Delaney (Analyst - Goldman Sachs): Okay, that’s helpful. And then for a follow-up question on 3D NAND, now that SanDisk is farther along with its own product development, can you talk about your degree of confidence in being able to ramp that product in manufacturing with good yield? And then any update you could provide and any quantification you may be able to help us just comparing the cost per bit of your 3D NAND solutions relative to what you believe the industry competition is doing? Sanjay Mehrotra (President & CEO): So with respect to 3D execution, (inaudible) technology execution continues to be on target with the timeline that we had outlined long time ago, several quarters ago, with pilot line production starting this year. And with initial pilot line production also going toward internal samples. And then commercial production starting in 2016 timeframe. And I believe that our 48-layer architecture for 3D NAND technology will position us very well in terms of cost competitiveness in the industry. We have always said that our 15 nanometer 2D NAND node is the lowest cost node in the industry this year bar none. And bar none means any – compared to any other 2D technology or 3D technology that is there today. And similarly, with our focus on continuing to have cost leadership, I believe that our 48-layer will position us to have next year as well. Of course 15 nanometer will continue to be the work horse in terms of vast majority of bit production for us in 2016 timeframe as well. Mark Delaney (Analyst - Goldman Sachs): Thank you. Operator: And we’ll take our next question from Monika Garg with Pacific Crest Securities. Monika Garg (Analyst - Pacific Crest Securities): Judy, you talked about your expectation that 3D NAND still be about 15% or 20% of industry by the end of 2016. Do you expect this to be new capacity added by NAND vendors or you think mainly it’s going to be conversion from (inaudible) NAND capacity? Judy Bruner (EVP of Administration & CFO): I think a very large portion of it is going to be conversion of existing capacity. There is some new but I think the vast majority would be conversion of capacity. Monika Garg (Analyst - Pacific Crest Securities): Then shifting gears to the enterprise on the PCIe, what is your growth expectations for 2015 and 2016 for the market and where do you think your PCIe market share could be end of 2016? Sanjay Mehrotra (President & CEO): In terms of PCIe market, we have said earlier that in 2015, in terms of industry TAM, that has somewhat stalled, again, given the shift from PCIe to SATA that we have discussed in detail in the April call. Certainly as PCIe solutions get to lower price points enabled by captive flash memory as we discussed, as well as by greater deployment of NVMe solutions in the future, PCIe TAM will resume growth. And we expect PCIe TAM to increase in 2016 compared to 2015. And PCIe is going to be very attractive in hyperscale markets with its low latency capability and high capacity, high off capability that it provides. And PCIe TAM 2015 onward we believe will continue to grow very nicely. Monika Garg (Analyst - Pacific Crest Securities): Thank you. Sanjay Mehrotra (President & CEO): We look at 2018 time frame, SAS TAM for enterprise to be pretty much equal to PCIe TAM. And the fatter TAM by that time will become somewhat smaller compared to the SAS or PCIe TAM. So nice quarter ahead for PCIe 2015 onward. Monika Garg (Analyst - Pacific Crest Securities): Thanks a lot. Operator: And we’ll take our next question from Mehdi Hosseini with SIG. Mehdi Hosseini (Analyst - Susquehanna Financial Group): I want to focus on the 3D NAND. Sanjay, two questions for you. When you look at how you have developed the bits technology, what are the key assumptions you’re making? And I’m asking you to better understand how the differences in bits and other technologies are out there, the technologies behind 3D NAND are going to evolve. Do you see a major difference in actual product performance, or is this going to be a differentiating factor for SanDisk ? And I have a follow up. Sanjay Mehrotra (President & CEO): So 3D technologies as they’re known do give at the memory cell level, at the memory architecture level, do give certain benefits with respect to your lower power, as well as greater performance and the cell distribution. And of course, specific technology implementation of 3D technology can affect that. So, at this point, we are not really providing specific details of our 3D technology other than that it is a 48-layer technology and we’re the first ones in the industry to announce that technology, and expect others to be going toward higher layers in the future as well in order to make that technology become cost effective compared to 2D technologies. So that’s all we are really prepared to share at this point with respect to details of our technology. Mehdi Hosseini (Analyst - Susquehanna Financial Group): Sure. And then as you go to 48 and 60-layer, how should we think about the difference in total bit per wafer for your 3D 48 or 60-layer versus your 15 nanometer planar? Sanjay Mehrotra (President & CEO): Right. So what we have announced so far is 48-layers, and of course in the future years, as you would expect, 3D technology will go to higher number of layers here. But the timing of that, or the number of layers have not been disclosed yet. 3D technologies of course compared to a 2D technology will provide let’s say 48-layer technology compared to a 15 nanometer 2D technology, will provide more gigabyte per wafer. But again due to confidentiality reasons, at this point, we are not disclosing the specifics of how much more gigabyte per wafer. However, obviously that is baked into our estimations of – when we talk about the industry, supply bit growth next year being less than what it is in 2015. Our estimation of 3D RAM, as well as 3D gigabyte gain per wafer versus 2D is all baked into that bid growth estimation for next year. Mehdi Hosseini (Analyst - Susquehanna Financial Group): I ask the question because if you’re going to recognize revenue in the second half of 2016, do we have any idea how to think about the gross margin impact? Sanjay Mehrotra (President & CEO): We have always said that we will bring 3D into production once it becomes cost competitive with 2D memory technology. Mehdi Hosseini (Analyst - Susquehanna Financial Group): So when is revenue recognized we should feel that your technology, even at 48, should be accretive to the bottom line? Judy Bruner (EVP of Administration & CFO): Our 48-layer – the way I would think about it is that our 48-layer 3D technology will enable us to continue our cost reductions in a similar fashion to in the past. Mehdi Hosseini (Analyst - Susquehanna Financial Group): Okay, very helpful. Thank you. Judy Bruner (EVP of Administration & CFO): But I don’t view it as a step function, I view it as continuing the scaling of our technology. Mehdi Hosseini (Analyst - Susquehanna Financial Group): Got it. Thank you. Operator: And we’ll take our next question from Mark Newman with Bernstein. Mark Newman (Analyst - Bernstein): Hi, thanks for taking the question and congratulations on a strong improvement on the quarter. My question is on – twofold, one is on the enterprise and second is on the retail portion. So you mentioned enterprise performance better than you expected. And looking at the retail mix or rather I should say the removal mix, it’s increased substantially. So first of all on the enterprise side, you mentioned a number of product improvements the PCIe with captive NAND, the 2 terabytes SATA and a few other things. But as far as I can see, correct me if I’m wrong, these are not impacting revenue in Q2. Could correct me if I’m wrong? And if so, what is driving the improvement enterprise solutions? I guess I didn’t quite catch that, what is the core reason? Is it pricing related? Is it demand being better or is it share? So that’s the first part of question. And then similarly, on removable, you’ve made substantial improvement to the mix there. And as I recall back in Q4 last year, that was a big reason for the disappointment in Q4 was the removal mix was – or removal in retail was very disappointing due to not the right bits. I believe it was not enough X3. And you had said at that time that that problem was going to continue to Q1. So is this significant increase in Q2 a catch-up from I guess the mistakes or the issues of Q4 2014? Judy Bruner (EVP of Administration & CFO): Okay, so first let me start with enterprise and Sanjay, you can chime in if I miss something here. But on enterprise, our enterprise revenue did come down from Q1 to Q2. And so I want to make sure that that was clear. And the revenue contribution from the new products that we’ve just recently introduced, the 2 terabyte SATA product and the captive memory PCIe product, is really second half 2016 in terms of revenue contribution. The PCIe captive has begun to ship in the channel. Sanjay Mehrotra (President & CEO): 2015. Judy Bruner (EVP of Administration & CFO): Sorry, 2015. Did I say 2016? 2015. So those are second half for the most part, second half 2015 revenue contribution. So enterprise – Mark Newman (Analyst - Bernstein): For both of them. Judy Bruner (EVP of Administration & CFO): Yes, we’ve started shipping the captive PCIe product in the channel, but it’s in qualification with OEMs. Mark Newman (Analyst - Bernstein): Got it, okay. Judy Bruner (EVP of Administration & CFO): So the enterprise sales – the key here is enterprise sales were better than we had expected in Q2 primarily from SAS products. But the revenue was still down sequentially from Q1 to Q2. Okay in terms of – Mark Newman (Analyst - Bernstein): Okay, great and then – Judy Bruner (EVP of Administration & CFO): Yes in terms of removable, of course removable is largely retail, but there are some removable products that are sold in commercial channels as well. But if I focus on retail for a moment, the retail revenue grew 4% sequentially from Q1 to Q2, and that was driven by seasonality. Typically Q2 is stronger than Q1, as well as some amount of share gain in retail. And as we said, we are over the supply issues that we experienced and hampered us particularly in the fourth quarter of 2014. Sanjay Mehrotra (President & CEO): And I’d just to add to the enterprise part of your question that while the enterprise revenue went down compared to Q1, as we had expected previously, and budget did better as Judy has mentioned and I had mentioned as well compared to our expectations, I just want to highlight that PCIe revenue in Q2 went up on a quarter-over-quarter basis. Mark Newman (Analyst - Bernstein): Great, okay. Sanjay Mehrotra (President & CEO): I mean the enterprise PCIe. Mark Newman (Analyst - Bernstein): Yes, got it. And then I guess related to that so for the removable and retail mix, should this 44 – so removable is now 44% of the mix, which I think is highest since I believe Q4 2013 – Q4 2013, I believe. Is this an anomaly due to catch up or should we consider this the new normal? Just trying to understand if this is just a lumpy catch up due to the missed production or the underproduction in Q4 2014? Judy Bruner (EVP of Administration & CFO): It’s really more the result of the decline in the client SSD business due to the loss of the large client SSD program that we’ve talked about. So it’s really because that revenue came down and the enterprise revenue also came down sequentially although did better than we had expected. Those are really the key factors in causing the removable portion of the revenue to become a larger percent of the mix. And as we mentioned we – Mark Newman (Analyst - Bernstein): Got it. And then – Judy Bruner (EVP of Administration & CFO): We also expect the most significant amount of our growth in the second half of this year to come from embedded products. So that will also tend to then cause the removable percentage to decline somewhat. Jay Iyer (IR): Thank you, Mark. [Shaneal], we may have time for one, possibly two questions. Operator: Okay, we’ll take our next question from Joe Moore with Morgan Stanley . Joe Moore (Analyst - Morgan Stanley): I wonder if you could talk about the captive, the non-captive part of the mix going up, what exactly is driving that? And what do you see that mix looking like going forward? And what’s the margin ramifications of that? Judy Bruner (EVP of Administration & CFO): As I mentioned the non-captive was 6% of our sales mix in the quarter, up from 2% in the previous quarter and 1% in the year-ago quarter. We consciously purchased non-captive memory in order to ensure that we would have no shortages as we address the demand going forward. And we expect to continue to utilize some amount of non-captive in the second half of the year. And again to ensure that shortages do not hamper our ability to gain share and to begin improving our revenue going forward. It is a drag on gross margins. But we’re happy that our gross margin in the second quarter was better than we had expected, even inclusive of the non-captive impact. Joe Moore (Analyst - Morgan Stanley): Okay great, thank you very much. And then with regards to the industry growth being above 40% now, higher than you thought before, what do you see as the biggest driver of the supply being higher for – both for you and for the sector? Sanjay Mehrotra (President & CEO): I think it really is our latest estimation of technology transitions by various suppliers in the industry. The mix of X2 and X3 technology estimations as well. It’s primarily related to that. Joe Moore (Analyst - Morgan Stanley): Great, thanks very much. Operator: And we’ll take our next question from Craig Ellis with B Riley. Craig Ellis (Analyst - B. Riley & Co.): Judy it sounds like versus three months ago, the growth outlook in the back half of the year is weighted more towards embedded and a little bit less towards retail. Is that right? And if that’s right, why is that? Judy Bruner (EVP of Administration & CFO): I wouldn’t say that the growth expectation or the mix of it has changed from what we were thinking in April to now. I think we just didn’t talk so much in April about what would be driving the increase – sequential increase in the second half. But our embedded sales are the biggest component of that expected sequential increase. But we do expect the retail revenue to be seasonally stronger in the second half as compared to the first half. So that is a part of the sequential revenue growth as well. Craig Ellis (Analyst - B. Riley & Co.): Okay. And then just a broader question, there’s been a lot of concern over the last month or so about in-demand and SanDisk has a unique view given the hundreds of thousands of stores that it ships products into. As you look across the retail business and look at the intensity of demand, can you characterize some of the regions globally where demand is either tracking well and in line with expectations or where there might have been variances either on the upside or downside versus expectations in the quarter that you reported? Sanjay Mehrotra (President & CEO): There are certainly some pockets of weakness on the global retail markets. However we have always said that the TAM for retail in general is declining year over year in single digits, in mid single-digit rate. And that’s because imaging is moving to the phones, to the smartphones. Therefore digital camera sales of course are going down and associated with that, imaging card sales are going down as well. USB also is overall the market that is somewhat in a decline. Mobile card of course is a category that is one of the larger categories within retail and does grow. But, of course, there are embedded phones that have embedded solutions as well. So overall TAM for retail declining with certain pockets of weakness. But SanDisk’s focus is with our strong penetration in retail channels across the globe with our strong brands with a broad portfolio of solutions and very strong recognition of SanDisk’s high quality of products in the retail brand. Our goal, of course, is to continue to gain share in the retail channels and use that to drive a strong position across the globe here. We mentioned that we, in terms of our retail share position, because of some of the supply challenges that we had in Q4 and Q1 timeframe, we lost some share. But we are back on track in terms of positioning our share gains well in the retail channels. Craig Ellis (Analyst - B. Riley & Co.): Thanks, Sanjay. And then if I could just lastly, Judy, the business managed a very nice decrease in pricing intensity in the second quarter. As you look at the business, are you comfortable with where pricing is now on a quarter-on-quarter basis or do you still feel like there’s room for improvement as you look into the back half of next year? Judy Bruner (EVP of Administration & CFO): Our expectation currently for the second half of the year is that like for like, price decline will remain modest in the second half. Of course the price statistic that we report in any given quarter is heavily influenced by the mix of products that we sell. But overall, we feel good about the pricing environment for the second half. Craig Ellis (Analyst - B. Riley & Co.): Thanks, Judy, thanks Sanjay. Jay Iyer (IR): Thank you, Craig. And folks that’s all the time we have for today’s call. We want to thank you for joining us. And a Webcast replay of today’s call should be available on our IR Web site shortly. Thank you again and have a good evening. [Shaneal], you can formally close the call. Operator: That does conclude today’s conference. We thank you for your participation. You may now disconnect. All rights reserved © 2014 TheStreet, Inc. Please feel free to quote up to 200 words per transcript. Any quote should be accompanied by “Provided by TheStreet” and a link to the complete transcript and www.thestreet.com. Any other use or method of distribution is strictly prohibited. THE INFORMATION CONTAINED IN EACH WRITTEN OR AUDIO TRANSCRIPT (the “TRANSCRIPT”) IS A REPRODUCTION OF A PARTICULAR COMPANY’S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION. THE TRANSCRIPTS ARE PROVIDED “AS IS” AND “AS AVAILABLE” AND THESTREET IS NOT RESPONSIBLE IN ANY WAY NOR DOES IT MAKE ANY REPRESENTATION OR WARRANTY REGARDING THE ACCURACY OR COMPLETENESS OF THE TRANSCRIPTS AS PRODUCED, NOR THE SUBSTANCE OF A PARTICULAR COMPANY’S INFORMATION. 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Semi, IC Stocks Clobbered; Summit's Srini Sundararajan Provides Some Insight

Semiconductors stocks are tumbling.

The following stocks, among others, are down at least 4 percent on Wednesday afternoon:

  • Apple Inc. (NASDAQ: AAPL)
  • Linear Technology Corporation (NASDAQ: LLTC)
  • Skyworks Solutions Inc (NASDAQ: SWKS)
  • Analog Devices, Inc. (NASDAQ: ADI)
  • Qorvo Inc (NASDAQ: QRVO)
  • Cirrus Logic, Inc. (NASDAQ: CRUS)
  • Micron Technology, Inc. (NASDAQ: MU)
  • Exar Corporation (NYSE: EXAR)
  • M/A-COM Technology Solutions Hldgs Inc (NASDAQ: MTSI)
  • Avago Technologies Ltd (NASDAQ: AVGO)

Related Link: Stephens’ Harsh Kumar On Semiconductor Weakness: It’s A ‘Tremendous’ Opportunity, Apple Fears Overblown

Other stocks plummeting within the segment are Maxim Integrated Products Inc. (NASDAQ: MXIM), down almost 3 percent, and NXP Semiconductors NV (NASDAQ: NXPI), down 2.6 percent.

Was the tumble related to Linear Tech’s bad quarter (reported on Tuesday night), concerns related to iPhone units, or a combination of both elements?

Benzinga spoke about the weakness with Summit’s Srini Sundararajan. He believes the aforementioned factors are “difficult to uncouple,” but suggested the Linear Tech miss could be weighing on this group more than Apple concerns.

“Thinking further, it is more LLTC than AAPL because LLTC blamed US macro economic and industrials weakness,” he said.

Also on Wednesday, Harsh Kumar, Managing Director and Semiconductor analyst at Stephens & Co, told Benzinga that he sees a “tremendous buying opportunity” in Wednesday’s dive. He recommended taking advantage of the weakness with the Market Vectors Semiconductor ETF (NYSE: SMH), which was recently down 2.45 percent.

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© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

SanDisk Analysts Sees Both Risk And Upside Heading Into Earnings

SanDisk Corporation (NASDAQ: SNDK) is scheduled to report its second quarter results after Wednesday’s market close. Estimize is calling for the company to earn $0.36 per share (based on 28 estimates) in the quarter on revenue of $1.198 billion. This compares to the Wall Street consensus estimate calling for the company to earn $0.32 per share on revenue of $1.189 billion.

Here is a summary of what Wall Street’s top analysts are saying ahead of the print.

Summit Research: ‘The Time Has Come To Buy’

Srini Sundararajan of Summit Research commented in a note in late June that recent SanDisk downgrades are “past their expiry date” and investors should look for a bounce in the stock.

Sundararajan noted that SanDisk’s stock has “been a beaten down” stock for most of 2015 and right now most of the reasons that justify the decline in shares “are now in the rear-view mirror” and “most of the problems are on the mend.”

Looking beyond the June quarter, the analyst stated that SanDisk’s multiple has to “switch over” to fiscal 2016 estimates to arrive at a potential valuation. Currently, the Street is estimating an earnings per share of $4.49 next fiscal year which is “aided by buybacks” and easy comps between 2015 and 2016.

Sundararajan continued that SanDisk’s remaining $2.2 billion in buybacks represents a “whopping” 16.2 percent of its market cap. The company should be “quite able” to fulfill its buybacks with its current cash on hand and 2016’s free cash flow.

Shares were maintained with a Buy rating with a price target raised to $85 from a previous $61.

Susquehanna: Near-Term Earnings Power ‘In Question’

Mehdi Hosseini of Susquehanna Financial Group commented in a note in mid-June that his recent checks suggested raw NAND average selling prices in the second quarter “held up better than expected,” though with increased concern on average selling price strength trends heading into the bottom half of the year.

With that said, Hosseini raised his second quarter earnings per share estimate to $0.35 from a previous $0.29 and also raised his third quarter earnings per share estimates to $0.74 from $0.71. However, the analyst lowered his fourth quarter earnings per share estimate to $1.01 from a previous $1.15, resulting in a lower full year and bottom half 2015 estimates.

Hosseini also noted that purchasing trends by end-customer within the Enterprise segments “continued to evolve” which made the analyst wonder if a raw NAND manufacturer and component vendor like SanDisk can ever “significantly” scale its Enterprise SSD and System revenues, which could be viewed as a headwind for gross margin expansion into 2016.

On the other hand, SanDisk’s cost savings initiatives are expected to help with “some” leverage and operating margin expansion next year.

Shares were maintained with a Neutral rating and unchanged $60 price target.

Morgan Stanley: NAND ‘Solid,’ Company Specific Headwinds ‘Intensifying’

Joseph Moore of Morgan Stanley commented in a note in mid-June that SanDisk is losing end market flexibility and will be forced to move to lower margin exposures in the short run.

According to Moore, the NAND market has “improved substantially” over the last three quarters, but during the same timeframe SanDisk had “very weak” earnings due to problems with its Enterprise strategy and execution challenges with its No. 1 customer, Apple Inc. (NASDAQ: AAPL).

Moore said that discussion with key customers, partners and competitors in Asia has left him “increasingly uncomfortable” that SanDisk can fix its problems. Specifically, after “consecutive setbacks” with Apple the last few quarters, the analyst is “not sure” where SanDisk supply is going to go. In addition, recovering the lost Apple SSD share will be “difficult” given a limited penetration outside of the company and Apple “may not be motivated” to qualify SanDisk in a mid-product cycle. As such, the company may be forced to explore lower margin segments.

Shares were downgraded to Equal-weight from Overweight with a price target lowered to $75 from a previous $80.

Wedbush: ‘Not An Overnight Fix’

Finally, Betsy Van Hees of Wedbush commented in a note in early June that a recent investor meeting with SanDisk’s management team highlighted opportunities in client platform solutions.

Van Hees stated that she was “impressed” with the company’s presentation and left the meeting “encouraged” by SanDisk’s focus on right sizing its business and long-term growth opportunities. However, the analyst added that this is “not an overnight fix” and 2015 will remain a “challenging” year for the company.

Shares were Neutral rated with a $52 price target at the time of the note’s publication.

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