EVERYONE, need your help to decipher the SNDK release. Have a look and tell me if you can figure it out.
I am seeing that they missed the revenue estimate by a whopping 12% but beat the EPS number by 4 cents. If this is true, their margins had to be incredible. Am I missing something? The ONLY thing I can think of is that their margins were much higher due to increased Retail sales and reduced OEM sales.
Comments?
*** From the PR:
SUNNYVALE, Calif., Jan 24 (Reuters) - SanDisk Corp.
<SNDK.O>, which makes flash memory chips used in digital
cameras and handheld devices, reported a sharp slowdown in
fourth quarter sales on Wednesday, a slump it said could
continue through the first half of this year.
SanDisk reported revenues in the quarter ending Dec. 31 of
$177.7 million, below internal projections and 12 percent below
the average Wall Street forecast, according to First
Call/Thomson Financial.
"Market conditions softened significantly in the fourth
quarter due to slowing economic conditions. Product demand
slowed, resulting in reduced backlog and low near-term order
visibility," Eli Harari, SanDisk's president and chief
executive, said in a statement.
The company said manufacturers that market its flash memory
chips under their own brands were running down their inventory
levels in a slowing economy and added that sales could be
affected for the first two quarters this year. SanDisk reported
net income for the quarter of $29.5 million, or 41 cents per
diluted share. The average forecast had been for operating
earnings of 37 cents per share, according to First Call/Thomson
Financial. SanDisk shares fell to $36 in after hours trade on
Instinet, down from $46-3/16 at the close of trade on Nasdaq.
((Los Angeles bureau, 213 380 2014)) |
