SanDisk Corp. said profit slid in its latest quarter as the chip maker booked merger-related charges ahead of its planned acquisition by hard-drive maker Western Digital.

Adjusted results, though, topped expectations and sent shares up 1.3% in after hours trading. The stock fell 17% in the past three months through Wednesday's close.

The companies struck a roughly $19 billion deal in October, one that came amid a wave of mergers across the semiconductor market as chip makers and their suppliers grapple with slower growth, rising competition and technology shifts across the electronics industry.

In the fourth quarter, SanDisk, based in Milpitas, Calif., recorded $28.1 million in charges stemming from the merger. At the same time, sales slid 11%. While the company has benefited from growing demand for products such as smartphones, results have been dented by issues including lower-than-expected sales of enterprise products.

On Wednesday, Chief Executive Sanjay Mehrotra said SanDisk made "substantial progress" in the second half of the year in reinvigorating its portfolio.

Overall, the company reported a profit of $135.5 million, or 65 cents a share, down from $201.9 million, or 86 cents, a year earlier. Excluding restructuring costs, among other items, earnings per share fell to $1.26 from $1.30.

Revenue declined 11% to $1.54 billion.

Analysts projected 89 cents in adjusted earnings per share on $1.44 billion in sales, according to Thomson Reuters.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

January 27, 2016 17:15 ET (22:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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