Feeds

SanDisk remembers how to make a Q4 profit

Passes bump in the road, sees another ahead

Gartner critical capabilities for enterprise endpoint backup

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 ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.