Feeds

SanDisk surfs cash tsunami on biz SSDs: Prelim nice, but DIMM?

Flash-on-DDR3-sticks to emerge later this year, we're promised

Top 5 reasons to deploy VMware with Tegile

SanDisk is on a revenue roll, with the first quarter of 2014 showing a 62 per cent profit rise on an annual compare, driven by rising enterprise SSD sales.

For the first three months of the year [prelim report PDF], to March 30, SanDisk revenues were $1.51bn; they were $1.34bn a year ago, meaning a 13 per cent uptick, although they were 12 per cent down on the preceding quarter, SanDisk's seasonally top Q4.

Net income was $269m, nicely up on the $166m reported a year ago; a 62 per cent increase. How did SanDisk manage the trick of raising profits by 62 per cent when revenues rose just 13 per cent?

Sanjay Mehrotra, SanDisk's president and CEO, said: "We delivered record first quarter results, driven by 61 per cent growth in our SSD revenue and strong retail performance.”

He said SanDisk had improved the mix in its portfolio, meaning more higher-margin products were sold, and that "SSD sales drove our outstanding results as we continued to gain share across the client and enterprise markets.”

“Combined client and enterprise SSD sales accounted for 28 per cent of our first quarter revenue,” he continued, “with enterprise SSD revenue more than doubling on a year-over-year basis."

The earnings call revealed that SAS SSDs were the primary contributor to the enterprise SSD growth. Mehrotra hopes SATA MLC SSDs with a 10-drive-writes-per-day capability will drive enterprise SSD sales this year.

Mehrotra said: "We anticipate that enterprise SSDs will be our fastest growing product category in 2014, and we are off to a great start towards exceeding our goal of delivering 25 per cent of 2014 revenue from enterprise and client SSDs combined."

He went on: "All PC OEMs actually use SanDisk SSDs and among the enterprise, six of the top seven storage and server OEMs use SanDisk product as well."

Questioned about the ULLtraDIMM (flash-on-a-DDR3 DIMM) product he said: "We expect [a] leading customer to qualify the product by midyear timeframe; and in second half, we expect to have some revenue from this product line. We are engaged with other customers as well."

He added: “ULLtraDIMM is really not a plug-and-play product. It requires certain modifications to the BIOS to address this, and we are investing time and effort in helping achieve that."

Mehrotra expects ULLtraDIMM revenues to start in the second half of this year and grow in 2015.

3D NAND could be piloted in 2015 with production ramping in 2016. Mehrotra was asked about triple-level cell (TLC) SSDs and he answered: "We do have 3 bit per cell on the roadmap for client SSDs but we look at more as a 2015 kind of opportunity."

So we see SATA SSDs being strong this year, ULLtraDIMM and TLC SSDs contributing to revenue in 2015, and, maybe, 3D NAND coming in in 2016. SanDisk looks to be in a strong place and, if you believe the CEO's comments, it's well positioned for more growth this year. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.