SanDisk Q2 Profit Slips 95 Percent From Previous Year

By Chris Preimesberger  |  Posted 2012-07-19

There might be some consternation at the SanDisk headquarters and among shareholders as the result of solid-state drive (SSD) price wars that are currently in full swing.

The solid-state storage media maker, best known for making those little blue Secure Digital, or SD, cards for cameras and smartphones, reported July 19 a second-quarter profit of $12.97 million, or 5 cents a share. That doesn't sound too bad until one compares it with the year-ago profit of $284.4 million, or $1.02 a share.

Total second-quarter revenue of $1.03 billion declined 25 percent on a year-over-year basis and 14 percent on a sequential basis.

The Milpitas, Calif.-based company cited weakness in its original equipment manufacturer sales. Competition from such NAND flash media makers as WD, Hitachi and Samsung also played a part in this decline.

Shares of SanDisk have fallen 29 percent so far this year, closing July 19 at $35.08.

Enhanced by Zemanta

Rocket Fuel