SanDisk Q1 Profit Misses Estimates

reported weaker-than-expected earnings for the first quarter. The Milpitas, California-based company posted quarterly earnings of $39 million, or $0.17 per share, down from $269 million, or $1.14 per share, in the year-earlier period. Excluding one-time items, the company's earnings dropped to $0.62 per share from $1.44 per share. Its sales slipped 12 percent y/y to $1.33 billion. However, analysts were projecting earnings of $0.66 per share on revenue of $1.31 billion. Gross profit fell to $545 million in the latest quarter, versus $751 million in the year-ago quarter. Operating income tumbled to $57 million versus $425 million. The company's board declared a cash dividend of $0.30 per share for the second quarter. "We are disappointed with our financial and operational performance and are quickly taking aggressive measures to regain the excellence in execution that we have delivered in the past," said Sanjay Mehrotra, president and chief executive officer, SanDisk. "Our top priorities for 2015 are to strengthen our product roadmap and rebuild our momentum across the business. We are excited about the long-term opportunities available to us and believe we are uniquely positioned in the industry to deliver innovative solutions to our growing customer base." The average estimate among 36 Estimize users was for earnings of $0.79 per share and revenue of $1.35 billion. SanDisk shares fell 1.67 percent to $69.93 in the after-hours trading session.