Chipmaker SanDisk forecasts lower revenue

Thu Oct 16, 2014 10:55pm EDT
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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...

Sandisk's new solid state drive is displayed at the Sandisk booth during the 2014 Computex exhibition at the TWTC Nangang exhibition hall in Taipei June 3, 2014.  REUTERS/Pichi Chuang