Milpitas flash memory maker SanDisk saw its stock dive nearly 17 percent Thursday after it lowered its first quarter earnings forecast, blaming unanticipated headwinds.
The company said it now expects earnings for the quarter that ends March 29 to be about $1.3 billion, down from a previously forecasted $1.4 billion to $1.45 billion. It also withdrew other forecasts for the quarter and the year, and sad it would provide an update at its first quarter earnings call on April 15.
An Investor Day scheduled for May was also cancelled and will be rescheduled for a later date, the company said in a news release.
SanDisk said lower than expected sales of enterprise products and lower pricing in some areas of its market were behind the lower forecast.
We are disappointed with our financial outlook, said SanDisk President and CEO Sanjay Mehrota. We will work through these headwinds, leveraging our compelling product roadmap and broadening customer base. We believe growth prospects remain strong and we are encouraged by the progress we are making in our 3D NAND technology.
Photo: The SanDisk corporate headquarters in Milpitas, Calif. on Wednesday, May 21, 2014. (Nhat V. Meyer/Bay Area News Group)
