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. NASA Observes Rare Sungrazer Comet Disintegration Near the Sun
  1. NASA Observes Rare Sungrazer Comet Disintegration Near the Sun
  2. Kolaiseval Out on OTT: Know Everything About This Tamil Psychological Thriller Film Online
  3. Band Melam OTT Release Date Revealed: Know When and Where to Stream it Online
  4. LEGO Friends: The Next Chapter Season 4 Now Streaming on Netflix: What You Need to Know
  5. Small NASA Satellite Could Reveal How Lightning Impacts Space Weather
  6. Piece by Piece: Pharrell Williams’ LEGO Documentary Now Streaming on Netflix
  7. Ustaad Bhagat Singh OTT Release: When & Where to Watch Pawan Kalyan’s Telugu Film Online
  8. Battleground Season 2 Now on OTT: Know Where to Watch This Ultimate Fitness Reality Show Online
  9. Apne Paraye Out on OTT: Know Where to Watch This Hindi Dub of Bengali Drama Series
  10. Scientists Just Created the Largest 3D Map of the Universe Ever to Study Dark Energy
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.