MILPITAS, Calif. (AP) — SanDisk, supplier of flash memory cards installed in cell phones and digital cameras, on Tuesday reported a net loss for the first quarter as revenue fell by 22 percent.
The Milpitas, Calif.-based company lost $208 million, or 92 cents per share, in the quarter compared with a profit of $11 million, or 5 cents, in the like period a year ago.
Revenue was $659.5 million compared with $850 million in the prior year.
The adjusted net loss was $108 million, or 48 cents per share. It excludes amortization of intangible assets related to acquisitions, incremental interest expense due to an accounting change and certain income taxes.
In the first-quarter of 2007, the adjusted profit was $48 million, or 21 cents per share.
Analysts surveyed by Thomson Reuters were expecting, on average, a loss of 76 cents per share on revenue of $537.7 million. Analysts’ estimates typically exclude one-time items.
SanDisk’s chief executive, Eli Harari, said industry fundamentals improved in the first quarter. Supply and demand seemed to be more balanced, leading to higher flash prices.
SanDisk also saw better-than-expected demand, strong product cost cuts and lower operating expenses, Harari said.
In the quarter, product revenue fell 19 percent to $588 million from the prior year while license and royalty revenue was down 43 percent to $71 million.
Shares of SanDisk were up 31 cents to $13.71 on Tuesday.