SanDisk Corp reported having sold fewer memory chips to gadget makers for the third quarter of the year. But the results still surprised Wall Street analysts as they previously expected lower net revenue from the flash memory card maker.
Last Thursday, the company said it earned $76.5 million or 31 cents per share for the July-September period. The figure decreased by 67 percent from $233.3 million or 96 cents per share in the same period a year ago. The latest quarter the adjusted earnings reached to $117.8 million or 48 cents per share.
The revenue of SanDisk Corp decreased by 10 percent from $1.42 billion to $1.27 billion.
According to a poll by FactSet, analysts were expecting of adjusted earnings of 33 cents per share on revenue of $1.22 billion.
SanDisk Corp makes flash-memory chips that are used in USB flash drives and digital media players as well as solid-state drives in computers and other high-tech chips. Their products are mostly used in electronics in phones, cameras and computers.
President and CEO Sanjay Mehrotra said that the results are clear indicators that the company’s mobile embedded business is showing “solid recovery”.
According to Doug Freedman, an RBC Capital Markets analyst, the good third quarter results come from improved pricing at the end of the quarter for a type of memory known as NAND flash. This type of memory is used in smartphones and other consumer electronics . SanDisk is also benefitting from its increasing presence at Apple Inc and its growing market share.
Known mainly for its thumb drives and other small storage devices, SanDisk has recently started to focus to the business market. The company’s acquisition of Pliant Technology had greatly improved its enterprise solid-state drives, now being used by many businesses to process and access information more efficiently and quickly.
SanDisk’s income has slowed down the past two years as its profit margins narrowed.