By Noel Randewich
SAN FRANCISCO, April 17 SanDisk raised
its forecast for revenue this year and said it expects higher
prices for its NAND memory chips, which are used in smartphones
Chief Financial Officer Judy Bruner's comments to analysts
on a quarterly conference call on Wednesday helped reverse
losses in SanDisk's stock after the company posted quarterly
results that disappointed some on Wall Street, despite beating
SanDisk said it expects a "healthy" supply/demand balance
this year. But it also reaffirmed plans to increase its supply
of NAND by less than the industry average, a strategy that
should help maintain prices, but could limit the company's
growth in shipments.
Bruner told Reuters in a separate interview that slower
supply growth this year follows growth in 2012 that outpaced the
"This year, we're growing it somewhat less than the
industry. But over time, I believe we are maintaining our
share," she said.
SanDisk raised its 2013 revenue target to a range of between
$5.6 billion and $5.75 billion from a previous range of $5.3
billion to $5.6 billion.
It also gave a forecast for June-quarter revenue that beat
"Based on our decision to add no new wafer capacity beyond
productivity improvements in 2013, we expect to be supply
constrained for the remainder of the year," Bruner said.
Following an industry slump in memory chip prices last year,
prices for DRAM and NAND memory chips have been strengthening.
Last year Apple, a major purchaser of NAND chips
worldwide, accounted for almost 13 percent of SanDisk's
business. Bruner declined to say how much of SanDisk's business
currently comes from Apple.
SanDisk's revenue rose 11 percent year-over-year to $1.34
billion in the January-March quarter. Bruner said she expects
revenue in the June quarter to be between $1.35 billion and $1.4
Analysts on average expected first-quarter revenue of $1.307
billion and June-quarter revenue of $1.35 billion, according to
Thomson Reuters I/B/E/S.
Its net income was $166 million, or 68 cents a share,
compared to $114 million, or 46 cents a share, in the same
quarter last year.
Its non-GAAP EPS was 84 cents per share. Analysts had
expected EPS of 79 cents.
Shares of SanDisk were up 0.62 percent in extended trade
after closing down 3.08 percent at $55.72.