Feeds

SanDisk remembers how to make a Q4 profit

Passes bump in the road, sees another ahead

Remote control for virtualized desktops

SanDisk reported a huge swing in fourth quarter income today, but issued a "cautious" outlook for the upcoming quarter due to competitive pricing and an unstable economy.

The memory chip maker's net income for Q4 was $105.8m, compared with a loss of $35m from the same period last year. Operating income was $173m, compared to $12m in Q4 '06.

Revenue rose 7.1 per cent year-over-year in the quarter to $1.25bn from $1.16bn. Product revenue was $1.12bn and licensing and royalty revenue made the remaining $128m.

Total revenue for fiscal 2007 was $3.896bn, a 20 per cent increase from $3.258bn in 2006. Net income for fiscal 2007 was $218m, compared to net income of $199m the previous year.

The company's profit had taken a beating in fiscal 2006 with charges related to the $1.6bn acquisition of M-Systems, an Israeli flash-memory rival.

"This was a good quarter for SanDisk considering the challenging business conditions in our market," said CEO Eli Harari in a statement.

While flash-memory devices are popular as ever, a glut in the market is keeping down pricing. The company said while total megabytes sold increased 146 per cent in Q4 year-over-year, the average price per MB also declined 58 per cent.

“Despite current uncertainties in the worldwide economy and a challenging industry pricing environment in the first quarter, we expect to grow our top and bottom line in 2008, driven by continuing strength in our mobile markets, our expanding international retail footprint and our competitive cost structure.”

SanDisk expects first quarter revenue in 2008 between $775m and $875m. Analysts had been hoping for a figure in the low billions. As of this publication, SanDisk's share price fell 5.83 per cent in after hours trading ®

Beginner's guide to SSL certificates

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.