SanDisk cuts revenue forecast

Photo: Beawiharta

Photo: Beawiharta

Published Mar 26, 2015

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Johannesburg - SanDisk Corporation, which makes data-storage chips for mobile devices, cut its revenue forecast after lower-than-expected sales from business products, delays to product qualification and lower prices.

Revenue will be about $1.3 billion for the three months ending March 29, compared with as much as $1.45 billion previously projected, the Milpitas, California-based company said in a statement on Thursday.

SanDisk shares fell more than 8 percent to the equivalent of $75.04 at 9.22am in Frankfurt. They closed at $81.175 in New York trading Wednesday, giving the company a market value of $17.3 billion.

“We are disappointed with our financial outlook,” Chief Executive Officer Sanjay Mehrotra said in the statement. “We will work through these headwinds, leveraging our compelling product road map and broadening customer base.”

SanDisk is seeing lower demand for its chips, which are sold directly to consumers in the form of memory cards and to makers of mobile phones and tablets. The revised projection comes two months after the company forecast first-quarter revenue that missed analysts’ estimates of $1.6 billion.

Bloomberg

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