Chipmaker SanDisk forecasts lower revenue
By Soham Chatterjee
(Reuters) - Chipmaker SanDisk Corp forecasts current-quarter revenue below analysts' estimates due to supply constraints.
SanDisk's shares fell 5 percent in extended trading, after the company also reported lower-than-expected revenue for the third quarter.
SanDisk, a supplier of memory chips for Apple Inc's iPhones, in June bought Fusion-io Inc, a solid-state storage products maker.
Rival Samsung Electronics Co Ltd said last week that it would spend $15 billion to build a major new factory in South Korea to make either memory chips or logic chips.
SanDisk forecast revenue of $1.80 billion-$1.85 billion for the fourth quarter ending December. Analysts on average were expecting $1.88 billion, according to Thomson Reuters I/B/E/S.
The company's GAAP net income fell 5 percent to $262.7 million, or $1.09 per share, in the third quarter ended Sept. 28 as expenses rose 25 percent from the prior quarter, mainly due to costs related to restructuring and the acquisition of Fusion-io.
Excluding the restructuring items and other non-cash items, SanDisk earned $1.45 per share.
Revenue rose 7 percent to $1.75 billion. Continued...