SanDisk Corp, a company which manufactures chips, had their forecast for their current-quarter revenue under the estimations of analysts because of constraints in supplies.
The shares of SanDisk got reduced to five percent when it comes to extended trading, when the company made reports revenue that was lower-than-expected for this year’s third quarter.
Its rival, Samsung Electronics Co Ltd mentioned during the past week that it is going to spend 15 billion dollars for the construction of a major and brand new factory that they will based in South Korea. They aim to create either logic chips or memory chips.
There is a forecast revenue for SanDisk which sees 1.80 billion dollars to 1.85 billion dollars for this year’s fourth quarter which is going to end on December. According to analysts, they are expecting an average of 1.88 billion dollars based on the reports they told Thomson Reuters.
Also, the net income for GAAP of the company went down five percent to 262 million dollars, which is equivalent to 1.09 dollars per share, during the third quarter, which ended on the 28th day of September when expenses increased 25 percent, originating from the quarter before it, primarily because of the costs connected to the acquisition and restructuring of Fusion-io.
SanDisk was able to earn 1.45 dollars per share, not including the items for restructuring, as well as other items which were non-cash. The revenue also increased seven percent, reaching 1.75 billion dollars.
According to analysts, they are expecting an average profit worth 1.33 dollars for each share and 1.77-billion dollar revenue.
According to Betsy Van Hees, the analyst of Wedbush Securities, the miss on the revenue appears to slightly be a negative surprise, considering the strong launching of next generation iPhones from Apple, as well as the addition of latest acquisition Fusion IO.