SanDisk Posts 3Q Profits off Higher Sales
October 20, 2009 by Mark Ellis
Filed under Business
Memory device maker SanDisk Corp. has a posted a surprisingly strong third-quarter profit after experiencing a period of unexpectedly high sales and income from previously written-down inventories. While the market for memory products went through rough times at the height of the economic downturn, companies like SanDisk have been enjoying an upturn in demand for their products.
SanDisk’s results prompted an 11 percent rise in the company’s shares, sending the value up to $23.81 in after-hours trading following reassuring statements issued by the company concerning their prospects for the fourth quarter and beyond. SanDisk has also experienced a massive recovery since November of last year, when its stocks hit a 5-year low value of $5.07.
Other chip makers such as Intel and Texas Instruments have released surprisingly positive quarterly results, hinting at the possibility of a widespread recovery in the chip market. SanDisk’s strong performance has led analysts and investors to become more confident about the prospects of the memory chip market as more and more companies within the industry continue to post results that surpass Wall Street expectations.
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