SanDisk beats Q2 earnings estimates, revenue grows 17%
SanDisk Corp (NASDAQ:SNDK) announced late Thursday a 17% jump in its second quarter revenues, despite lower net income, beating analyst earnings estimates.
For the three months ending July 3, the flash memory storage manufacturer posted net income of $248.4 million, or $1.02 per share, compared to $257.9 million, or $1.08 per share, a 3.7% drop.
SanDisk attributed the profit drop to its $327 million acquisition of Pliant Technology, a developer of enterprise solid state drives, a data storage device, announced in May.
Adjusted for costs related to the acquisition, and other one-time expenses, income rose 7.8% to $278 million, or $1.14 per share.
Revenues jumped 17% to $1.4 billion, from $1.2 billion a year ago. Analysts had anticipated earnings of $0.99 per share on $1.34 billion in revenues.
"We delivered record quarterly revenue, driven by our broad product offerings and our well diversified Retail and [Original Equipment Manufacturer] channels," said president and CEO, Sanjay Mehrotra.
"Our integration of Pliant Technology is progressing well and we are excited by our business prospects in the enterprise storage segment."
Indeed, SanDisk's revenues from the sale of its products rose to $1.3 billion, up 18.2% from a year ago. Its license and royalties revenues increased 5.9% to $93 million.
SanDisk also announced the opening of its third joint venture 300 millimeter wafer fabrication facility in Yokkaichi, Japan, with manufacturing partner, Toshiba.
The Silicon Valley, California-based company, whose stock on Nasdaq rose 11.11% to trade at $46.19 per share as 2:55pm EDT, said it improved its embedded product line with the launch of its iNAND Extreme embedded flash drive.
Together with the rest of the iNAND family of products, SanDisk says it can cover all needs of the entire mobile market segment, including feature phones and high-end tablet computers.
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