First-quarter earnings at

SanDisk

(SNDK)

rose 17%, surpassing the Street's estimates, but the company's revenue came in short of expectations.

Investors seemed to focus on the negative after Thursday's report. In recent after-hours trading, the company's shares were off $2.98, or 10.7%, to $24.90.

The flash storage company earned $74.52 million, or 39 cents a share, in the quarter. That result was up from the $63.57 million, or 34 cents a share, SanDisk earned in the year-ago period.

SanDisk's revenue rose 16.6% from the first quarter of 2004 to $450.98 million.

The consensus of analysts polled by Thomson First Call was for 32 cents a share in earnings on $467.24 million in sales.

The Sunnyvale, Calif.-based company did not immediately provide its outlook for the second quarter. Analysts had predicted that the company would earn 29 cents a share on $500.11 million in sales in the current period.

Shares of SanDisk closed the regular session up 91 cents, or 3.4%, to $27.88.