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

Reuters April 28, 2016 02:45:12 IST
SanDisk posts surprise revenue rise on demand from data centres
| Reuters

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:

also read

Oil settles up after hitting 15-month highs on demand prospects
Business

Oil settles up after hitting 15-month highs on demand prospects

By Laura Sanicola NEW YORK (Reuters) - Oil prices settled higher on Tuesday, with Brent hitting above $71 and trading at its highest since March, on expectations for growing fuel demand during the summer driving season in the United States as OPEC+ agreed to boost output. Brent crude futures for August settled up 93 cents, or 1.3%, to $70.25 a barrel after hitting $71 earlier in the session - its highest intra-day price since March 8. U.S.

Wall St ends little changed; energy gains, health sags
Business

Wall St ends little changed; energy gains, health sags

By Lewis Krauskopf, Shashank Nayar and Medha Singh (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector

Zoom forecasts upbeat revenue on remote work, e-learning boost
Business

Zoom forecasts upbeat revenue on remote work, e-learning boost

(Reuters) - Zoom Video Communications Inc on Tuesday forecast better-than-expected revenue for the current quarter, after beating quarterly estimates, as the video-conferencing platform expects steady growth from remote work and online learning. Zoom became a household name during the pandemic as businesses and schools switched to its video conferencing platform for virtual classes, office meetings and social catch-ups