Plans to cut its workforce by 10% worldwide in a bid to counter ecomomic slowdown
Storage company SanDisk has reported a net loss of $1.86 billion for the fourth quarter 2008, compared to net income of $105.8m in the year-ago quarter, on revenue down 31% at $863.87m.
It made an operating loss of $1.62 billion compared to operating income of $173.29m in the same period last year. Diluted net loss per share was $8.25 compared to diluted EPS of $0.45 a year ago. Cash flow from operations declined 56% to $65m.
The company said product revenue fell 34% to $742m, and license and royalty revenue fell 5% to $122m. Total megabytes sold during the quarter increased 123% year-over-year and 49% sequentially.
During the quarter the company announced plans to cut its workforce by 10% worldwide and reduce 2009 operating expenses below $800m in a bid to counter the economic slowdown.
For the fiscal 2008, the company reported a net loss of $2.07 billion compared to net income of $219m a year ago, on revenue down 14% at $3.35 billion. It also reduced its capital expenditure forecast for fiscal 2009 to $900m. It had initially expected to spend approximately $3 billion.
Eli Harari, chairman and chief executive at SanDisk, said: Despite a very difficult pricing environment, macroeconomic turmoil and the impact on consumer purchasing, we delivered sequential revenue growth in the fourth quarter. However, we are very disappointed with our fourth-quarter bottom-line results, which included significant asset impairment and inventory-related charges.
Last month the company agreed to transfer more than 20% its captive fab capacity to Toshiba for approximately $890m.