SanDisk Corp. (NASDAQ/SNDK) announced results for the second quarter on Wednesday July 22nd. The report showed steep drops in profit and revenue, though results came in above Wall Street expectations. (Source: SanDisk, July 23, 2015.)
SanDisk stock gained more than 12% to top $60.90 in immediate after-hours trading, after closing with a 2.3% decline at $54.18. The stock has fallen 44.7% in 2015.
SanDisk recorded a profit of $81.0 million, or 38 cents a share—down from $274.0 million, or $1.14 a share, a year earlier.
The company reported revenue of $1.2 billion, 25% lower than the same period last year.
“During the second quarter, we strengthened our portfolio with several new product launches in both the retail and commercial channels,” said company President and Chief Executive Officer Sanjay Mehrotra. “We are making steady progress on all operational fronts, and remain focused on enhancing our financial performance.”
The flash storage company benefited from the booming growth in demand for products like smartphones. Struggling flash-memory company SanDisk seemed to get back on track in the second quarter.
SanDisk announced the availability of a few products; from applications to cloud services products. SanDisk’s enterprise division, which includes Solid State Drives (SSDs) and software used in data center applications, has been struggling for a while. Going forward, failure to successfully sell enterprise solutions on the timelines or in the reasonable quantities may create more problems for the company.
While the results reflected a large decline from the same quarter last year, they were better than expected. However, going forward, failure to effectively or efficiently execute on their financials may not have the positive effects that investors anticipate.
On the other hand, the company needs to focus on their research and development to be able to introduce new products in order to maintain market share.