Memory chipmaker SanDisk Corp reported its first fall in quarterly revenue in two years and plans to cut jobs to reduce costs as it struggles to meet demand for its flash-based memory products.
SanDisk`s adjusted profit also fell short of analysts` average estimate, sending the company`s shares down nearly 6 percent in after market trading on Wednesday.
The company, which has also faced issues of unplanned maintenance at its chip foundry, plans to reduce its non-factory headcount by about 5 percent, it said on a conference call.
SanDisk makes flash memory-based products for cloud computing and datacentres, as well as for digital cameras, smartphones and other mobile devices.
But lower pricing, lean inventory and weaker-than-expected sales of storage products had forced the company to cut its first-quarter and full-year sales forecast last month.
SanDisk`s revenue fell nearly 12 percent in the first quarter ended March 29 to $1.33 billion, in line with its lowered expectations and slightly topping analysts expectation of $1.31 billion.
Net income fell to $39.0 million, or 17 cents per share, from $268.9 million, or $1.14 per share, a year earlier.
On an adjusted basis, the company earned 62 cents per share, which fell short of analysts estimates of 66 cents per share, according to Thomson Reuters I/B/E/S.
SanDisk had said in January it had lost a major customer, widely believed to be Apple Inc , which switched to using solid state drives made by Samsung Electronics Co Ltd in its MacBooks.
The company`s shares were down 5.7 percent at $67.04 in trading after the bell.
The stock has lost just over a quarter of its value this year, which analysts say makes SanDisk an attractive target for companies looking to boost their presence in the enterprise market.
