SanDisk (Milpitas, Calif.) reported third quarter sales of $935 million, up 28 percent compared to the second quarter and up 14 percent compared to the third quarter of 2008.

SanDisk said its third quarter net income in accordance with generally accepted accounting principles was $231 million, or 99 cents per share, up from $53 million, or 23 cents per share, in the second quarter. In the year-ago quarter, SanDisk posted a GAAP net loss of $166 million, or 74 cents per share.

On a non-GAAP basis, excluding charges, SanDisk said its net income was $176 million, or 75 cents per share. The company posted a non-GAAP net income of $83 million, or 36 cents per share, in the second quarter and a non-GAAP net loss of $132 million, or 59 cents per share, in the third quarter of 2008.

SanDisk's third quarter revenue and earnings significantly exceeded consensus analyst expectations. Analysts had been expecting revenue of roughly $788 million and non-GAAP earnings per share of 26 cents, according to Yahoo Finance.

Eli Harari, SanDisk chairman and CEO, said through a statement that the company's third quarter results reflect gains in the company's OEM business with strong orders continuing into the fourth quarter.

"We are encouraged by improved industry fundamentals and our increasingly diversified global markets, which bode well for further growth in Q4 and in 2010," Harari said.

SanDisk said total units sold in the third quarter increased by 31 percent year-to-year and 45 percent sequentially. Gigabytes sold increased 107 percent year-over-year and increased 37 percent sequentially, the company said. Average price per gigabyte sold declined 43 percent year-over-year and 3 percent sequentially, SanDisk said.