SanDisk Revenue Rises as Demand Grows for Solid-State Drives

Advertisement
By Reuters | Updated: 28 April 2016 11:35 IST
SanDisk Corp reported a surprise increase in quarterly revenue, its first rise in more than a year, helped by strong demand for its chips used in solid-state drives and data centres.

Shares of the company, which is being bought by Western Digital Corp, rose nearly 1 percent to $76.50 in after-market trading on Wednesday.

SanDisk has been ramping up production of solid-state drives (SSDs), which are pricier than hard disk drives and are used increasingly by data centres and in consumer laptops as they are quicker, more rugged and less prone to fail.

Advertisement

Despite the loss of a big, unnamed customer last year, revenue from what the company calls its client SSD business rose 6 percent in the first quarter ended April 3.

Excluding the impact of the lost customer, revenue from the business, which makes SSDs used in PCs and laptops, jumped 55 percent.

Advertisement

"What is encouraging is that client SSD is doing well while the PC market is not doing very well," said Sterne Agee CRT analyst Douglas Freedman. "You are seeing clear share gains from SSDs against hard drives in the PC market."

Revenue from SanDisk's enterprise business, which makes chips for data centres, also rose in the first quarter, by 15 percent.

Advertisement

SanDisk has boosted its revenue and margins by producing more SSDs at a time of declining prices for its NAND flash chips, which are widely used in smartphones, cameras and tablets to store music, pictures and other data.

Revenue from the company's embedded business, which sells storage products to original equipment manufacturers, fell 33 percent due to weak demand from smartphone makers.

Advertisement

But SanDisk's biggest business - removable products, such as USB flash drives and micro SD cards - recorded a 6 percent rise in revenue for the quarter.

The company's net income doubled to $78.4 million, or 37 cents per share.

Excluding items, the company earned 82 cents per share, beating the average analyst estimate of 55 cents, according to Thomson Reuters I/B/E/S.

SanDisk's total revenue rose 2.5 percent to $1.37 billion, above the average analyst estimate of $1.21 billion.

Western Digital's $15.78 billion acquisition of SanDisk is expected to close in the second quarter.

© Thomson Reuters 2016

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Cameras, Laptops, Mobiles, PC, SSD, SanDisk, Tablets
Advertisement

Related Stories

Popular Mobile Brands
  1. iPhone 18 Pro Roundup: Expected Price, Launch Date, Features and More
  2. iPhone 18 Pro Max Roundup: Everything We Know Ahead of Launch
  3. These Flagship Oppo Find X10 Series Phones Could Launch Soon in India
  1. IFA 2026: Lenovo Unveiled New IdeaPad, Yoga and ThinkBook Laptops
  2. IFA 2026: Nvidia RTX Spark PCs, Local AI Tools Announced With October Launch Planned
  3. WhatsApp Reportedly Rolling Out Third-Party AI Agent Chats to Android Users
  4. Luna Band Now Available Globally: Check Price in India, Specifications and Features
  5. Pocket Bitcoin Data Breach Exposes Personal and Financial Information of 5,411 Customers
  6. Google Pixel Watch 5 Stephen Curry Special Edition Goes on Sale: Price, Features and More
  7. IFA 2026: Noise Master Buds Open With Sound by Bose Technology Unveiled
  8. Binance Warns of Phishing Scam Targeting Crypto Users With Fake Account Security Alerts
  9. Oppo Find X10 Pro Max, Find X10 India Launch Seems Imminent as Phones Appear on Certification Site
  10. Xiaomi Smart Band 11 Active Launched With Up to 21 Days of Battery Life; Smart Band 11 Price, Features Revealed
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.