Chipmaker SanDisk on Thursday forecast current-quarter revenue below analysts’ estimates due to supply constraints.
SanDisk’s shares fell five percent in extended trading, after the company also reported lower-than-expected revenue for the third quarter.
SanDisk, a supplier of memory chips for Apple’s iPhones, in June bought Fusion-io, a solid-state storage products maker.
Rival Samsung Electronics said last week that it would spend $15 billion to build a major new factory in South Korea to make either memory chips or logic chips.
SanDisk forecast revenue of $1.80 billion-$1.85 billion for the fourth quarter ending December. Analysts on average were expecting $1.88 billion, according to Thomson Reuters I/B/E/S.
The company’s GAAP net income fell five percent to $262.7 million, or $1.09 per share, in the third quarter ended Sept. 28 as expenses rose 25 percent from the prior quarter, mainly due to costs related to restructuring and the acquisition of Fusion-io.
Excluding the restructuring items and other non-cash items, SanDisk earned $1.45 per share.
Revenue rose seven percent to $1.75 billion.
Analysts on average had expected a profit of $1.33 per share and revenue of $1.77 billion.
The revenue miss “is a bit of negative surprise given how strong the launch of the Apple’s next-gen iPhones have been and the addition of recent acquisition Fusion IO,” Wedbush Securities analyst Betsy Van Hees told Reuters.
SanDisk also said it would pay a quarterly dividend of 30 cents per share.
The company’s shares closed at $85.31 on the Nasdaq on Thursday. Up to Thursday’s close, the stock had risen 21 percent this year.
(Editing by Kirti Pandey)
This article originally appeared on Recode.net.