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Memory chipmaker SanDisk's fourth-quarter profit, revenue beat Street [January 23, 2014] By Noel Randewich SAN FRANCISCO (Reuters) — Memory chipmaker SanDisk <SNDK.O> said on Wednesday its fourth-quarter profit and revenue exceeded expectations as the adoption of solid-state drives helped boost demand for its chips. |
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SanDisk, which sells chips to device makers of
smartphones, cameras and other mobile devices, is increasingly
using NAND chips in its own branded solid-state drives that are
sold directly to companies and consumers. While they remain significantly more expensive than mechanical
hard drives, solid-state drives, or SSDs, are gaining popularity
in data centers and consumer laptops due to their increased
efficiency. "SSDs are becoming a bigger proportion of the company, which
means less volatility in earnings," said Pacific Crest analyst
Monika Garg. "They're moving up the value chain." Riding an industry recovery in NAND prices, SanDisk's shares
have surged 50 percent in the past year, compared to a 24
percent increase in the Standard & Poor's 500 index. The Milpitas, California-based company posted revenue of $1.73
billion, up 12 percent from the year-ago quarter. Analysts on
average had expected $1.703 billion, according to Thomson
Reuters I/B/E/S. Net income rose to $338 million, or $1.45 per share, from $214
million, or 87 cents per share, a year earlier. Excluding one-time items, earnings were $1.71 per share. That
was better than the $1.58 expected by analysts. Shares of SanDisk rose 0.40 percent in extended trade after
closing up 0.42 percent at $72.19 on Nasdaq. (Reporting by Noel Randewich; editing by Richard Chang) [© 2014 Thomson Reuters. All rights reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
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