Sandisk Corporation (NASDAQ:SNDK) revealed its earnings for the first quarter of 2012 today after the market closed. The company announced that it had earned $0.46 per share in the first quarter of the year and posted revenues of $1.21 billion. The company is the largest in the competitive world of digital data storage, using its original precedence in the technology and innovation to secure its future.
Analysts had expected the company to announce earnings of 97 cents per share on revenue of around $1.23 billion. The company’s revenue growth last year was incredible and growth of the same magnitude could not be expected again. Projections on the company’s performance in this quarter have been dropping steadily and suffered a large fall after the company revised downward its own expectations for revenue this period.
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In the first quarter of 2011 the company announced earnings revenues of $1.29 billion which was a rise of over 19% on the same period in 2010.
Sandisk is an American multinational specializing in the design and manufacture of memory devices for computers and consumer electronics. The company has been hit recently with competition from cheaper alternatives to its products from east Asian companies and lower demand worldwide. On the back of those figures the company released a lower estimate for sales earlier this month of $1.2 billion compared to a previous high figure of $1.35 billion.
Most people are familiar with the products manufactured by SanDisk. their popular memory cards are used in most digital camera and mobile phones as well as for use with PCs and expandable storage capable tablets. The company has a solid demand base for its products and the company has expanded into the high end SSD market which should see a jump in demand later in the year as price fall.
In the SSD market SanDisk faces direct competition from company’s it did not directly compete with previously. the migration of notebooks from hard drives has left the company directly competing with company’s breaking in to the SSD market. SSDs or solid state drives use flash memory rather than an optical disk to record data. The devices are more power efficient and resilient than hard disks.
SanDisk is looking to grow well this year as the market for smart phones increases world wide. Any increase in the sale of electronics should mean a corresponding increase in the complementary goods demand for the company’s memory cards and other storage technology.