Business

SanDisk posts 3Q profit as revenue climbs 14 pct

Posted October 20, 2009 11:00 pm

Associated Press

MILPITAS, Calif. -- SanDisk Corp. on Tuesday reported a third-quarter profit, reversing a year-ago loss, as revenue climbed by 14 percent due to stronger demand and higher prices.

The maker of flash memory cards used in consumer electronics devices recorded net income of $231 million, or 99 cents per share, compared with a loss of $166 million, or 74 cents, in the year-ago quarter.

Excluding charges related to acquisitions, compensation expenses and a convertible note, earnings would have been $176 million, or 75 cents per share, compared with a loss of $132 million, or 59 cents, last year.

Revenue came to $935.2 million, up from $821.5 million, driven by strong product sales that offset a decline in license and royalty revenue.

SanDisk beat the expectations of analysts, who, on average, were expecting a profit of 26 cents per share on revenue of $787.9 million, according to Thomson Reuters.

Shares of Milpitas, Calif.-based SanDisk added 2 cents to close at $21.48 Tuesday. After hours, shares soared $2.10, or 9.8 percent, to $23.54.

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