“Shares of SanDisk (SNDK) are getting smacked down today after the flash-memory giant preannounced lousy first-quarter results,” Michael Comeau reports for Minyanville.
“SanDisk now expects to report first-quarter revenues of $1.2 billion versus prior guidance of $1.3 to $1.35 billion, and consensus of $1.3 billion,” Comeau reports. “Additionally, gross margins are now expected to come in below the 39% to 42% range to which the company guided on January 25.”
“And keep in mind, that guidance SanDisk issued back in January in conjunction with its fourth-quarter results was disappointing itself — so SanDisk is now on a bit of a losing streak,” Comeau reports. “Back then, SanDisk noted that some OEM customers weren’t ordering as much as expected. Yesterday it echoed that revelation in its press release by attributing the current weakness to ‘weaker than expected price and demand.'”
Comeau reports, “Translation: We don’t do enough business with Samsung and Apple.”
Read more in the full article here.