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Chipmaker SanDisk Forecasts Lower Revenue

Third-quarter revenue also came in below expectations.

SanDisk

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.