SanDisk: Flash pricing, demand weaker than expected

Some analysts may be caught off guard by SanDisk's warning about flash demand and pricing.

SanDisk said that its revenue for the fiscal first quarter will be weaker than expected amid pricing and demand issues.

In a statement, SanDisk said that the company will deliver first quarter revenue of about $1.2 billion, down from its previous range of $1.3 billion to $1.35 billion.

Wall Street was looking for sales of $1.34 billion and profits of 91 cents a share.

SanDisk added that gross margins will be below its previous range of 39 percent to 42 percent.

Some analysts may be caught off guard by SanDisk's warning. Jefferies analyst Sundeep Bajikar touted SanDisk's capacity planning and position in the solid state drive market.

Other analysts such as Sterne Agee's Vijay Rakesh said that SanDisk could drive "significant upside" in the current quarter due to a depreciating Yen.