Feeds

SanDisk remembers how to make a Q4 profit

Passes bump in the road, sees another ahead

Choosing a cloud hosting partner with confidence

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 ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.