* Reports 3rd-qtr adj profit of $1.59/share vs est $1.32
* Says 3rd-qtr revenue of $1.63 bln vs est $1.57 bln
* Expects full-year revenue above high-end of earlier
forecast of $5.95-$6.05 bln
* Expects 4th-qtr adj gross margins 48-50 percent
* Shares up 3 pct after market
By Neha Alawadhi
Oct 16 SanDisk Corp more than tripled
its quarterly profit, beating analysts' estimates, after a fire
at a rival chip maker increased prices at a time when Apple Inc
and other users of its flash memory chips were
launching new products.
The company, which also forecast current-quarter revenue
largely above analysts' estimates, said it was shifting its
focus toward higher-margin products such as solid-state drives.
Solid-state drives (SSDs) are viewed by many as the future
of the disk drive industry as they are faster and unlike
hard-disk drives they have no moving parts and hence are more
Although SSDs are still more expensive than traditional hard
disk drives, they are increasingly being built into laptop PCs
and tablet computers like Apple's iPad as they are more durable
and consume less power.
SSDs could be 25 percent of SanDisk's revenue next year, up
from 3 percent in 2011, Pacific Crest Securities analyst Monika
Garg said in a pre-earnings note.
SanDisk said it expects fourth-quarter revenue of
$1.65-$1.725 billion, while analysts on average had expected
$1.67 billion, according to Thomson Reuters I/B/E/S.
SanDisk's chips are used to store data such as movies and
photos in smartphones, flash drives and tablets.
U.S. memory chip makers SanDisk and Micron Inc have
been gaining as prices rebound from last year's lows. A fire at
Korean rival SK Hynix Inc's plant in China in
September created a temporary shortage, boosting prices further.
Rival Micron reported higher quarterly revenue last week.
SanDisk's net income more than tripled to $277 million, or
$1.18 per share, in the third quarter. Excluding one-time items,
earnings were $1.59 per share.
Revenue rose 28 percent to $1.63 billion.
Analysts on average had expected a profit of $1.32 per share
on revenue of $1.57 billion, according to Thomson Reuters
The Milpitas, California-based company's shares were up
about 2 percent in extended trading, after closing at $62.94 on
the Nasdaq on Wednesday.