SanDisk Falls on Revenue Forecast

SanDisk stock loses more than 6% after forecasting revenue roughly in line with consensus expectations.
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stock has lost more than 6% after forecasting revenue roughly in line with consensus expectations.

SanDisk is projecting current quarter revenue of $875 million to $950 million and 2010 revenue of $4 billion to $4.4 billion. Looking forward, with no new NAND flash memory fabrications expected to come on stream in 2010, the company expects the NAND industry to continue to experience a healthy balance between demand and supply. Flash storage in mobile handsets is expected to continue to be the primary demand.

SanDisk adds that exciting new devices such as the iPad are demonstrating the significant new opportunities ahead for flash mass storage.

SanDisks' projections are roughly in line with the Wall Street consensus, which disappointed some investors. The consensus has placed first quarter revenue at $920 million and 2010 revenue at $4.3 billion.

"Expectations running into the quarter were exceptionally high, so investors, I think, were looking for not only a beat but a raise," Wedbush Morgan analyst Betsy Van Hees told


. "The concern is that they remain very tied to the consumer, which is evident in the guide."

SanDisk on Thursday reported fourth quarter net income of $340 million, or earnings of $1.45 per share, compared to net loss of $1.76 billion, or $7.78 per share, in the fourth quarter of fiscal 2008. On a non-GAAP basis, SanDisk posted earnings per share of $1.18 compared with the 69 cents per share estimate derived from a Thomson Reuters poll of analysts.

SanDisk stock has dropped 9.3% to $26.08, while related stocks have also lost ground in morning trading.

Micron Technology

(MU) - Get Report

has fallen 3.9% to $9,



has edged down 0.1% to $17, and

Seagate Technology

(STX) - Get Report

is down 1.3% at $18.13.

-- Reported by Andrea Tse in New York

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