SanDisk Corporation (NASDAQ: SNDK) has just provided a “business update” which is actually nothing less than an earnings warning. With this being the leader in flash memory it is going to spill over into other shares of memory makers and consumer electronics makers.
The leading independent flash memory maker said that preliminary revenue results for its first quarter of 2012 are going to be soft. The company noted, “Due to weaker than expected pricing and demand, the company estimates total revenue to be approximately $1.2 billion, down from the previously forecasted revenue range of $1.30 to $1.35 billion.” Thomson Reuters was calling for estimates of $1.34 billion in sales.
SanDisk is also guiding down its gross margin from the previously guided range of 39% to 42%. SanDisk set its earnings date on April 19, 2012.
The news is acting as a bit of a drag on other companies tied to flash. Micron Technology Inc. (NASDAQ: MU) is down almost 2% in the after-hours at $7.84 after closing down 1.3% today. Spansion Inc. (NYSE: CODE) has not dropped in the after-hours but the stock closed down 3.2% in the normal trading session.
SanDisk closed down 0.9% at $50.05 against a 52-week trading range of $32.24 to $53.46, but shares are down almost 6% at $47.10 in the after-hours session.
JON C. OGG