SanDisk Provides Business Update
March 26 2015 - 3:45AM
Business Wire
SanDisk Corporation (NASDAQ:SNDK), a global leader in flash
storage solutions, today announced that it expects its revenue for
the first fiscal quarter, which will end on March 29, 2015, to be
approximately $1.3 billion, depending on final sell-through
results, compared to the previously forecasted revenue range of
$1.40 billion to $1.45 billion.
The change in first quarter revenue estimate is primarily due to
certain product qualification delays, lower than expected sales of
enterprise products and lower pricing in some areas of the
business. The Company expects continued impact to its 2015
financial results from these factors as well as the previously
identified supply challenges, and now forecasts 2015 revenue to be
lower than the previous guidance.
Other forecasts for the quarter and the year are withdrawn, and
the Company will provide an update during its first quarter
earnings call on April 15, 2015. SanDisk will also reschedule its
previously announced May 2015 Investor Day to a later date.
“We are disappointed with our financial outlook,” said Sanjay
Mehrotra, president and chief executive officer, SanDisk. “We will
work through these headwinds, leveraging our compelling product
roadmap and broadening customer base. We believe our growth
prospects remain strong and we are encouraged by the progress we
are making in our 3D NAND technology.”
Forward-Looking Statements
This news release contains certain forward-looking statements,
including those regarding the Company’s expectations for revenue
and other financial results for its first fiscal quarter and full
year 2015, as well as its future business prospects, performance,
product qualifications, sales, pricing, supply, product roadmap,
customer base, growth prospects and technology development. These
forward-looking statements are based on the Company’s current
expectations and are subject to numerous risks and uncertainties
that may cause these forward-looking statements to be
inaccurate.
Risks that may cause these forward-looking statements to be
inaccurate include, among others:
- forecasted revenue results for the
first fiscal quarter are subject to final sell-through results and
may be adjusted or otherwise change after normal quarter-end
accounting review;
- competitive pricing pressures or
product mix changes may result in lower average selling prices,
lower revenues and reduced gross margins;
- excess or mismatched captive memory
output, capacity or inventory may result in lower average selling
prices, financial charges and impairments, lower gross margin or
other consequences, or insufficient or mismatched captive memory
output, capacity or inventory may result in lost revenue and growth
opportunities;
- the Company may experience weakness in
demand in one or more of its product categories, such as embedded
products or SSDs, or adverse changes in its product or customer
mix;
- there may be delays in product
development or lack of customer acceptance and qualification of the
Company’s solutions, including on new technology nodes,
particularly OEM products such as embedded flash storage and SSD
solutions;
- the Company may be unsuccessful in its
efforts to sell enterprise solutions on the timelines or in the
quantities it expects or transition its enterprise customers to its
leading edge solutions;
- the Company may be unable to develop,
or experience unexpected difficulties or delays in developing or
ramping with acceptable yields, new technologies or its new
technologies may fail to effectively compete with those of its
competitors;
- the Company’s 15-nanometer process
technology, X3 NAND memory architecture, 3D NAND technology or
solutions utilizing these new technologies may not be available
when expected or perform as expected;
- the Company may fail to manage the
risks associated with its ventures and strategic partnerships with
Toshiba; and
- the other risks detailed from
time-to-time under the caption “Risk Factors” and elsewhere in the
Company’s Securities and Exchange Commission filings and reports,
including, but not limited to, its Annual Report on Form 10-K for
the fiscal year ended December 28, 2014.
All statements made in this news release are made only as of the
date of this release. The Company undertakes no obligation to
update the information in this release in the event facts or
circumstances change after the date of this release.
About SanDisk
SanDisk Corporation (NASDAQ: SNDK), a Fortune 500 and S&P
500 company, is a global leader in flash storage solutions. For
more than 25 years, SanDisk has expanded the possibilities of
storage, providing trusted and innovative products that have
transformed the electronics industry. Today, SanDisk’s quality,
state-of-the-art solutions are at the heart of many of the world's
largest data centers, and embedded in advanced smart phones,
tablets and PCs. SanDisk’s consumer products are available at
hundreds of thousands of retail stores worldwide. For more
information, visit www.sandisk.com.
© 2015 SanDisk Corporation. All rights reserved. SanDisk and the
SanDisk logo are trademarks of SanDisk Corporation, registered in
the United States and other countries. Other brand names mentioned
herein are for identification purposes only and may be the
trademarks of their respective holder(s).
SanDisk CorporationMedia Contact:Michael Diamond,
408-801-1108michael.diamond@sandisk.comorInvestor
Contacts:Jay Iyer, 408-801-2067jay.iyer@sandisk.comBrendan
Lahiff, 408-801-1732brendan.lahiff@sandisk.com
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