SanDisk posts surprise revenue rise on demand from data centres | Reuters

Data storage products maker SanDisk Corp (SNDK.O) reported a surprise rise in quarterly revenue, its first increase 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 (WDC.O), were up about 1 percent at $76.58 in after-market trading on Wednesday.

Revenue from its enterprise business, which makes chips for data centres, rose 15 percent in the first quarter ended April 3.

The company has been ramping up production of more efficient and higher-margin 3D NAND chips and solid-state drives as average selling prices for NAND flash chips decline.

SanDisk's NAND flash chips are widely used in smartphones, cameras and tablets to store music, pictures and other data.

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

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

The company's total revenue rose 2.5 percent to $1.37 billion, above analysts' average estimate of $1.21 billion.

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

(Reporting by Kshitiz Goliya in Bengaluru; Editing by Kirti Pandey and Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Apr 28, 2016 02:45 AM

Also Watch

It's A Wrap: Omerta star Rajkummar Rao in conversation with Parul Sharma
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Thursday, April 19, 2018 Watch: National-level skater and coach Dhwanit Rele trains and nurtures budding athletes
  • Monday, May 14, 2018 FOMO Episode 1: Google Assistant, This is America, Sonam's wedding & Global Warming
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See