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SanDisk (SNDK) -6.1% AH after warning it expects Q1 revenue of $1.2B, below a guidance range of...

SanDisk (SNDK) -6.1% AH after warning it expects Q1 revenue of $1.2B, below a guidance range of $1.3B-$1.35B. The NAND flash memory vendor, which blames the shortfall on weak pricing and demand, also says its gross margin will be below a guidance range of 39%-42%. Rival Micron (MU), which mentioned seeing weak NAND pricing during last month's FQ2 earnings call, is down 1.1% in sympathy.

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Comments (4)
  • montanamark
    , contributor
    Comments (1444) | Send Message
     
    apparently they are not on the apple train
    http://bit.ly/HGPxTH
    3 Apr 2012, 05:09 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (934) | Send Message
     
    True. They're also not on the Samsung train (Samsung naturally uses its own NAND products). That makes things tough in the current smartphone environment.
    3 Apr 2012, 05:15 PM Reply Like
  • rnhuch
    , contributor
    Comments (15) | Send Message
     
    Doesn't Samsung pay royalties to SNDK? I believe I read that somewhere. Theoretically SNDK has the best of both words. The only problem seems to be margin. I wonder if this is result of a legacy technology in the process of being upgraded.
    3 Apr 2012, 08:07 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (934) | Send Message
     
    SanDisk gets royalties from Samsung, but Samsung negotiated a lower rate in '09. The profit from a royalty on a product sale doesn't match the profit SanDisk gets from selling the same product.
    3 Apr 2012, 08:28 PM Reply Like
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