SanDisk Forecasts Full-year Revenue Decline
SanDisk forecast a fall in full-year revenue and said it plans to cut jobs to reduce costs, as the data storage products maker struggles to meet demand for its flash-based memory products. The forecast of a revenue decline came after the company reported its first fall in quarterly revenue, also in two years.
Sandisk's solid-state drives and memory chips are very popular, but
lower pricing, lean inventory, unplanned maintenance at its chip foundry last year and delay in sales of certain embedded parts has led to two revenue forecast cuts this year, including a warning last month.
The company plans to reduce its non-factory headcount by about 5 percent to cut costs, it said on a conference call. SanDisk had 8,696 full-time employees as of Dec. 28.
SanDisk's full-year revenue forecast is $5.4-$5.7 billion.
SanDisk's revenue fell nearly 12 percent in the first quarter ended March 29 to $1.33 billion.
Net income fell nearly 86 percent to $39.0 million.
The company had said in January it had lost a major customer, widely believed to be Apple, which switched to using solid state drives made by Samsung in its MacBooks.