Flash memory provider SanDisk is starting off the year slowly as it misses the mark and drops below Wall Street expectations.
SanDisk reported first quarter earnings of $114 million, or 46 cents a share (statement). That's down significantly from the net income of $224 million at 92 cents a share in the first quarter of 2011 and $281 million, or $1.14 per share, in the fourth quarter of fiscal 2011.
Non-GAAP earnings were 63 cents a share on a revenue of $1.21 billion and a net income of $156 million.
Wall Street was expecting SanDisk to report first quarter earnings of 70 cents a share on revenue of $1.23 billion.
SanDisk CEO and president Sanjay Mehrotra explained in prepared remarks about what went wrong:
Our first quarter results were adversely impacted by lower-than-expected pricing and demand weakness in certain segments and we expect similar trends in the second quarter as well.
We believe a seasonally stronger demand environment in the second half of the year, combined with our diversifying portfolio of mobile and SSD solutions, will allow us to deliver strong sequential revenue growth in the third and fourth quarters.