Sandisk's Q1 Profit Declines

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Milpitas, Calif. - Sandisk's Q1 earnings fell 49 percent, its fifth straight quarterly decline, as it reported a profit of $114.4 million, down from $224.1 million in last year's first quarter, and $281 million in the previous quarter.

Revenue was down 6.9 percent to $1.21 billion while gross margins dropped to 34.5 percent from 42.6 percent.

"Our first quarter results were adversely impacted by lower-than-expected pricing and demand weakness in certain segments and we expect similar trends in the second quarter as well," said Sanjay Mehrotra, president and CEO. "We believe a seasonally stronger demand environment in the second half of the year, combined with our diversifying portfolio of mobile and SSD solutions, will allow us to deliver strong sequential revenue growth in the third and fourth quarters."

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