Wednesday, October 16, 2013

SanDisk results top estimates as memory chip prices rebound


(Reuters) - SanDisk Corp more than tripled its quarterly profit, beating analysts' estimates, after a fire at a rival chip maker increased prices at a time when Apple Inc and other users of its flash memory chips were launching new products.


SanDisk's chips are used to store data such as movies and photos in smartphones, flash drives and tablets.


U.S. memory chip makers SanDisk and Micron Inc have been gaining as prices rebound from last year's lows. A fire at Korean rival SK Hynix Inc's plant in China in September created a temporary shortage, boosting prices further.


Supplies to Apple, which launched its latest range of iPhones in September, added to SanDisk's results in the current quarter, the company said in a statement.


Apple was the company's biggest customer last year, accounting for 13 percent of its sales.


SanDisk's net income more than tripled to $277 million, or $1.18 per share, in the third quarter. Excluding one-time items, earnings were $1.59 per share.


Revenue rose 28 percent to $1.63 billion.


Analysts on average had expected a profit of $1.32 per share on revenue of $1.57 billion, according to Thomson Reuters I/B/E/S.


SanDisk's shares were trading up about 3 percent in extended trading, after closing at $62.94 on the Nasdaq on Wednesday.


(Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb Chakrabarty)



Source: http://news.yahoo.com/sandisks-revenue-rises-memory-chip-prices-rebound-204332587--sector.html
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