Flash memory maker SanDisk Corporation (Nasdaq:SNDK) published its financial report for the first quarter of 2009 after the market closed yesterday. The company posted a loss for the quarter, but beat analysts' estimates.
SanDisk posted $659 million revenue for the first quarter, 22% less than for the corresponding quarter of 2008. GAAP-based net loss was $208 million ($0.92 per share), compared with a GAAP-based net profit of $208 million for the corresponding quarter. Non-GAAP net loss was $108 million ($0.48 per share), compared with a non-GAAP net profit of $48 million for the corresponding quarter.
The company beat the analysts' consensus of a non-GAAP loss per share of $0.77 on $535.1 million revenue.
SanDisk predicts $650-725 million revenue for the second quarter, above the analysts' consensus of $575 million.
SanDisk's product revenue was $588 million for the first quarter, 19% less than for the corresponding quarter and 21% less than for the preceding quarter. License and royalty revenue was $71 million, 43% less than for the corresponding quarter and 41% less than for the preceding quarter.
The company's cash and cash equivalents fell to $2.38 billion at the end of March from $2.54 billion at the end of 2008.
SanDisk chairman and CEO Eli Harari said, “Industry fundamentals improved in the first quarter. We are encouraged that industry supply and demand balance is becoming better aligned, resulting in higher flash pricing. Our financial results improved substantially from the prior quarter driven by better than expected demand, strong product cost reductions and lower operating expenses."
During the conference call, Harari said he expected demand growth to continue in the second half of the year, particularly for mobile and portable computers. "Although this downturn is by no means over, things do look and feel better now than at the beginning of the year," he said. He added that the company would continue to cut costs as it focused on profits.
SanDisk's share closed at $17.31 yesterday, giving a market cap of $3.11 billion. The share rose 9.4% in after-hours trading.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2009
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