SanDisk lowers 1st-quarter revenue forecast
MILPITAS, Calif. (AP) — Flash-memory chip maker SanDisk is cutting its fiscal first-quarter revenue forecast partly because of lower-than-expected sales of enterprise products and lower pricing in some areas of the business.
The stock slid more than 11 percent before the market open on Thursday.
SanDisk now expects first-quarter revenue of about $1.3 billion. Its prior guidance was for revenue in a range of $1.4 billion to $1.45 billion.
Analysts polled by FactSet predict $1.44 billion in revenue.
The company said that another factor contributing to its revised guidance was certain product qualification delays.
SanDisk said that it anticipates the factors, along with previously identified supply challenges, will continue to impact its 2015 financial results. The company now foresees 2015 revenue coming in below its prior outlook of $6.5 billion to $6.8 billion.
Wall Street is looking for 2015 revenue of $6.71 billion.
SanDisk said that it is withdrawing other forecasts for the quarter and the year. The Milpitas, California-based company said that it will give an update on April 15 when it holds its first-quarter earnings call.
In addition, the flash-memory chip maker said it will reschedule its Investor Day, which was expected to be held on May 13, to a later date.
Shares of SanDisk Corp. dropped $9.44, or 11.6 percent, to $71.74 in premarket trading about an hour before the market open.