Storage company SanDisk has reported a net loss of $68m for the second quarter 2008, against net income a year ago of $28m, on revenue down 1% at $816m.
During the quarter, product revenue fell 5% to $687.5m, while license and royalty revenue grew 20% to $128.5m.
Eli Harari, chairman and chief executive at SanDisk, said the decline in the quarter was due to deterioration in consumer confidence that affected US retail and handset OEM sales. He said product gross margin was affected by lower sales volume and a substantial inventory write-down, but overall demand is expected to improve in the upcoming holiday season.
"We are taking significant actions to slow our captive supply growth, which will reduce our capital expenditure commitments, and allow us to better manage our inventory," said Harari. "We are also continuing to improve our cost structure through transitions to 43-nanometer MLC and the industry's first commercialized 3-bits per cell NAND flash."
Story Source: Datamonitor
