SanDisk Earnings, The Agony of Defeat (SNDK)
October 20, 2008 by Douglas A. McIntyre
Flash-memory giant SanDisk Corp. (NASDAQ: SNDK) has just posted earnings of -$0.59 and $821.5 million in revenue. First Call had estimates at -$0.28 EPS on $778.1 million in revenues.
The company did notes that it entered into anon-binding memorandum of understanding with Toshiba to restructure the current Fab 3 and Fab 4 joint ventures to reduce cap-ex in 2009 to cut expenses and monitor its balance sheet.
The company did not give guidance, but for Q4First Call has estimates at -$0.15 non-GAAP EPS and $902.6 million inrevenues.
Things are still not going well and might not for a while. The companysaid that excess inventories resulted in severe pricing pressures and adisappointing loss for the quarter including $109 million of inventoryrelated charges. We have also heard nothing about its merger, althoughif it is announcing cost cutting for 2009 it doesn’t sound like it is going to have any great updates.
Shares closed down 7% today and are down about 0.4% more at $14.36 in after-hours trading.
Jon C. Ogg
October 20, 2008
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