SanDisk clues at fall with profit in 2015

Storage chipmaker SanDisk estimate current-quarter and full-year 2015 profit well below Retaining wall Street expectations, saying it could be unable to match demand for display memory storage casino chips until mid-year on account of lean inventory ranges.

Shares of the business, which supplies recollection chips for Apple company company Inc's iPhones, droped about 8% to $74. 05 with after market investing.

The company estimate first-quarter revenue regarding between $1. 45 billion and $1. forty five billion. Analysts were being expecting revenue regarding $1. 60 billion, according to Thomson Reuters I/B/E/S.

SanDisk, and that is struggling to match demand for brand new NAND memory casino chips, widely used with smartphones, cameras along with other mobile devices, expects revenue to fall inside the first and 2nd quarters, compared with last year, as it functions to ramp up inventory levels.

Lean inventory ranges and unplanned maintenance at its chip foundry ended in weak supply regarding NAND chips inside the fourth-quarter, the company said on the conference call on Wednesday.

SanDisk's failure to incorporate production capacity in the past two years has concluded in the weaker-than-expected estimate, Pacific Crest Sec analyst Monika Garg stated.

The company stated it expects to return to year-on-year growth inside the second half regarding 2015, helped by a ramp up with production of recollection chips and market place share gains with its solid express drive (SSD) company.

The company's fourth-quarter benefits came in modestly before average analyst hope, helped by strong growth inside the SSD business.

SanDisk's net gain fell to $201. 9 million, or 86 cents per share, inside the quarter ended 12 ,. 28, from $337. 8 million, or $1. forty five per share, a year earlier. On an adjusted basis, the business earned $1. 40 per share.

Revenue rose under 1% to $1. 74 billion. Analysts had expected a profit regarding $1. 28 each share and profit of $1. 73 billion, according to Thomson Reuters I/B/E/S.

SanDisk also stated its board had increased send out share repurchase method by $2. 50 billion.