Press Releases

SanDisk Provides Business Update

Mar 26, 2015

MILPITAS, Calif., Mar. 26, 2015 – SanDisk Corporation (NASDAQ:SNDK), a global leader in flash storage solutions, today announced that it expects its revenue for the first fiscal quarter, which will end on March 29, 2015, to be approximately $1.3 billion, depending on final sell-through results, compared to the previously forecasted revenue range of $1.40 billion to $1.45 billion.

The change in first quarter revenue estimate is primarily due to certain product qualification delays, lower than expected sales of enterprise products and lower pricing in some areas of the business. The Company expects continued impact to its 2015 financial results from these factors as well as the previously identified supply challenges, and now forecasts 2015 revenue to be lower than the previous guidance.

Other forecasts for the quarter and the year are withdrawn, and the Company will provide an update during its first quarter earnings call on April 15, 2015. SanDisk will also reschedule its previously announced May 2015 Investor Day to a later date.

“We are disappointed with our financial outlook,” said Sanjay Mehrotra, president and chief executive officer, SanDisk. “We will work through these headwinds, leveraging our compelling product roadmap and broadening customer base. We believe our growth prospects remain strong and we are encouraged by the progress we are making in our 3D NAND technology.”

Forward-Looking Statements

This news release contains certain forward-looking statements, including those regarding the Company’s expectations for revenue and other financial results for its first fiscal quarter and full year 2015, as well as its future business prospects, performance, product qualifications, sales, pricing, supply, product roadmap, customer base, growth prospects and technology development. These forward-looking statements are based on the Company’s current expectations and are subject to numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate.

Risks that may cause these forward-looking statements to be inaccurate include, among others:

  • forecasted revenue results for the first fiscal quarter are subject to final sell-through results and may be adjusted or otherwise change after normal quarter-end accounting review;
  • competitive pricing pressures or product mix changes may result in lower average selling prices, lower revenues and reduced gross margins;
  • excess or mismatched captive memory output, capacity or inventory may result in lower average selling prices, financial charges and impairments, lower gross margin or other consequences, or insufficient or mismatched captive memory output, capacity or inventory may result in lost revenue and growth opportunities;
  • the Company may experience weakness in demand in one or more of its product categories, such as embedded products or SSDs, or adverse changes in its product or customer mix;
  • there may be delays in product development or lack of customer acceptance and qualification of the Company’s solutions, including on new technology nodes, particularly OEM products such as embedded flash storage and SSD solutions;
  • the Company may be unsuccessful in its efforts to sell enterprise solutions on the timelines or in the quantities it expects or transition its enterprise customers to its leading edge solutions;
  • the Company may be unable to develop, or experience unexpected difficulties or delays in developing or ramping with acceptable yields, new technologies or its new technologies may fail to effectively compete with those of its competitors;
  • the Company’s 15-nanometer process technology, X3 NAND memory architecture, 3D NAND technology or solutions utilizing these new technologies may not be available when expected or perform as expected;
  • the Company may fail to manage the risks associated with its ventures and strategic partnerships with Toshiba; and
  • the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in the Company’s Securities and Exchange Commission filings and reports, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended December 28, 2014.

All statements made in this news release are made only as of the date of this release. The Company undertakes no obligation to update the information in this release in the event facts or circumstances change after the date of this release.

About SanDisk

SanDisk Corporation (NASDAQ: SNDK), a Fortune 500 and S&P 500 company, is a global leader in flash storage solutions. For more than 25 years, SanDisk has expanded the possibilities of storage, providing trusted and innovative products that have transformed the electronics industry. Today, SanDisk’s quality, state-of-the-art solutions are at the heart of many of the world's largest data centers, and embedded in advanced smart phones, tablets and PCs. SanDisk’s consumer products are available at hundreds of thousands of retail stores worldwide. For more information, visit www.sandisk.com.

© 2015 SanDisk Corporation. All rights reserved. SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

Investor Contacts:
Jay Iyer
408-801-2067
Jay.Iyer@sandisk.com

Brendan Lahiff
408-801-1732
brendan.lahiff@sandisk.com

Media Contact:
Michael Diamond
408-801-1108
Michael.Diamond@sandisk.com

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