In the quarter, the company reported revenue of $751million, and pro forma profits of 61 cents a share; the Street had expected revenue of $737 million and 57 cents. No problems there.
But the company also said average price per megabyte sold dropped 25% from the previous quarter and 60% from a year earlier; that’s worse than the second quarter, when prices fell 19% sequentially and 49% year-over-year.
The company’s GAAP operating margins slipped to 17% from 18% in the previous quarter; on a non-GAAP basis, operating margins fell to 21%, from 22%.
The company said it expects 200% growth in megabytes sold for all of 2006. On a sequential basis, SanDisk said megabytes sold increased 40%; in the previous quarter, sequential growth on that basis was 46%.
After hours, SanDisk is off $5.43 at $56.21.