SanDisk Posts 2nd Qtr Profit, 3rd Qtr Gloom
July 22, 2009 by Mark Ellis
Filed under Business
After four consecutive quarterly losses, SanDisk has managed a profit in its second quarter, surprising analysts and heartening others within the memory making industry. The company credits better pricing for turning SanDisk’s fortunes around, as well as an ideal proportion between supply and demand for the company.
However, SanDisk’s optimism has been checked by its pessimistic expectations for its third quarter. SanDisk’s range of revenue expectations for the current quarter is wholly under analyst expectations for the company and has confirmed that if prices for the company’s memory change, they will go down.
Because of SanDisk’s third-quarter outlook, the company’s shares fell 6.7 percent to $17.71 per share, negating the slight gain that SanDisk experienced after posting better-than-expected second-quarter profits. SanDisk has suffered, along with the rest of the memory industry, due to oversupply, but SanDisk has managed to cut capacity.
Compared to last September, SanDisk’s shares are down 20 percent, but the company has significantly recovered from the seven-year-low it hit in November.
Image: Flickr
