SanDisk swings to 2Q loss, shares tumble

The results fell well below Wall Street's forecasts, and the company's shares dropped sharply in after-hours trading.

For the three months ended June 29, the company posted a net loss of $67.9 million, or 30 cents per share, down from a profit of $28.5 million, or 12 cents per share, in the same period a year earlier.

Excluding stock options costs, acquisition-related expenses and other items, the latest quarter's net loss was $22.3 million, or 10 cents per share.

Revenue slid about 1 percent to $816 million from $827 million.

Analysts, on average, had expected a profit of 13 cents per share on sales of $906.1 million, according to a poll by Thomson Financial. Analyst estimates typically exclude one-time items.

"Our second quarter sales were well below our expectations due to the rapid deterioration in consumer confidence, which impacted our sales in U.S. retail and to handset (manufacturers)," said Eli Harari, chairman and chief executive, in a statement. "Product gross margin was negatively impacted by the lower sales volume and a substantial inventory write-down."

SanDisk also said it plans to reduce future capital expenses and inventory growth by delaying investments in certain factories where it makes its chips for digital cameras, audio and video players. mobile phones and other consumer electronics.

Shares fell $2.14, or 11.9 percent, to $15.79 in after-hours electronic trading. The stock closed the regular trading session at $17.93.