Earnings: SanDisk Swings To Loss; Might Sell Stock
This story was written by David Kaplan.
SanDisk (NSDQ: SNDK) cited huge writedowns on assets and inventory charges as reason it swung to a $1.86 billion ($8.25 per share) loss in Q4. That compares to GAAP net income of $106 million ($0.45 per share) in Q407. The revenue front also suffered at the Milpitas, CA-based flash memory card maker. SanDisk's total Q4 revenue $864 million declined 31 percent on a year-over-year basis. Total revenue for FY08 of $3.35 billion declined 14 percent from $3.90 billion versus the year before. During the conference call, SanDisk told investors that it expects 2009 to be another "very challenging" year though Chairman and CEO Eli Harari added that anticipated spending cuts announced for this year will allow it to get a better handle on pricing, AP reported. In a bid to raise some cash, the company is considering a dilutive equity offering.
By David Kaplan