SanDisk's quarterly results beat expectations

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SanDisk's quarterly results beat expectations
U.S. memory chipmaker SanDisk on Wednesday posted quarterly results above expectations, helped by growing sales of solid-state drives.

But the company's shares fell after the report due in part to concerns about future chip pricing.

Following an industry slump in memory chip prices last year, prices for DRAM and NAND memory chips have been strengthening.

Pacific Crest analyst Monika Garg said the stock's selloff after the report was likely caused partly by concerns among some investors that chipmakers could add new capacity, putting downward pressure on NAND prices.

"I think NAND pricing remains healthy this year. For at least the next four or five months, nobody is going to add any new capacity," Garg said.

SanDisk's revenue rose 11 percent year-over-year to $1.34 billion in the January-March quarter.

Analysts on average expected first-quarter revenue of $1.307 billion, according to Thomson Reuters I/B/E/S.

Its net income was $166 million, or 68 cents a share, compared to $114 million, or 46 cents a share, in the same quarter last year.

Its non-GAAP EPS was 84 cents per share. Analysts had expected EPS of 79 cents.

Shares of SanDisk fell 5.3 percent in extended trade after closing down 3.08 percent at $55.72.

© Thomson Reuters 2013

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