SanDisk Corp. (SNDK-NASDAQ) just posted revenues of $786 million; GAAP EPS $0.00; and non-GAAP EPS $0.19. Wall Street was forecasting revenues of $756.9 million and non-GAAP EPS of $0.17. The company said 27 million mobile units in the quarter; and it notes the Hynix and Dell agreement have come on line. The comments sound good at first, but you’ll see why shares are down:
Eli Harari, Chairman and CEO: "Looking forward, we project a pick-up in demand during the seasonally strong back half of the second quarter. However, excess supply and depressed pricing is expected to continue through the second quarter, possibly extending through the summer months, putting pressure on our margins. Our outlook is optimistic for renewed growth heading into the fourth quarter of 2007 and forward to 2008. This optimism is based on our expectation of continuing penetration into multimedia handsets, the steady stream of exciting new consumer product introductions such as the Sansa® Connect(TM), and the exceptionally attractive price points for our products now available to consumers."
Shares of SNDK closed up almost 3% at $45.20, but shares are down 4% from the close at $43.25-ish. Until the conference call has been given with guidance, count this one as an open issue. The 52-week trading range is $35.82 to $66.20.
Jon C. Ogg
April 26, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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