SanDisk Corp. (NASDAQ: SNDK) shares have risen sharply in trading today after the company gave an upbeat outlook. The memory chip maker also reported better-than-expected second-quarter results.
SanDisk, which designs, develops, and manufactures data storage solutions in a range of form factors using its flash memory, controller and firmware technologies, expects third-quarter revenue to be between $1.15 billion and $1.25 billion. Gross margin for the third quarter is expected to stabilize in the 26% to 30% range before improving in the fourth quarter, the company said.
For the second quarter ended June 30, 2012, SanDisk reported revenue of $1.03 billion, down 25% over the same period last year. Second-quarter revenue, however, beat Street estimates of $1.02 billion.
SNDKâ€™s earnings per share for the quarter were $0.21, which is above the Street estimates of $0.19 per share.
Sanjay Mehrotra, CEO of SanDisk, said that SNDK delivered second-quarter results in-line with its forecast; reflecting short-term weakness in mobile OEM sales, strength in retail, and growth in enterprise and client SSD products. Mehrotra said that he is pleased to report that SNDKâ€™s SSD revenue achieved 10% of second-quarter sales with growing adoption of its solutions by major OEMs.
Mehrotra added that the company also made progress on its embedded product roadmap for mobile customers and believes that strengthening industry fundamentals and SNDKâ€™s expanding portfolio of solutions will contribute to improving financial results in the second half of 2012.
SNDK shares rose to an intra-day high of $40.45 in trading today. At last check, the stock was trading 11.92% higher at $39.26 on above average volume of 17.64 million.
Year-to-date, the stock is down 19.86%, compared with a gain of 12.58% for the NASDAQ.