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SanDisk shares rise 11% despite weak Q2 results

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SanDisk (NASDAQ:SNDK) saw shares rise in early trade Friday as its weak second quarter results were not as bad as some analysts anticipated.

The flash memory and storage system technologies provider said that for the period that ended July 1, net income was $13 million, or 5 cents per diluted share, compared to $248 million, or $1.02 per diluted share in the second quarter of last year.

Revenue dropped 25 per cent year over year to $1.03 billion, and was down 14 per cent from the first quarter.

Analysts forecasted earnings of 18 cents per share, on revenues of $1.02 billion.

"We delivered second quarter results in line with our forecast, reflecting short-term weakness in our mobile OEM sales, strength in retail, especially in international markets, and growth in our enterprise and client SSD products," said SanDisk’s president and CEO, Sanjay Mehrotra.

Mehrotra added that the company’s solid-state drives sales totalled 10 per cent of total second quarter sales, with growth of its solutions by major OEMS. SanDisk also made progress on its embedded product roadmap for mobile customers, he said.

The company anticipates its financial results will get better in the second half of the year.

"We believe that strengthening industry fundamentals and our expanding portfolio of solutions will contribute to improving financial results in the second half of 2012,” concluded Mehrotra.

SanDisk is a provider of flash memory storage solutions, ranging from research and development, product design, manufacturing, branding and distribution for OEM and retail channels.

Its product portfolio includes flash memory cards and embedded solutions used in smart phones, tablets, digital cameras, camcorders, digital media players and other consumer electronic devices. It also makes USB flash drives and solid-state drives for the computing and enterprise markets.

Shares were up 11.03 per cent to $38.95 Friday morning.

Quick facts: SanDisk Corporation

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NASDAQ:SNDK
Market: NASDAQ
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