SanDisk 4th-Quarter Revenues Flat
SanDisk Corp. said it expects its fourth-quarter revenue to be unchanged from the previous quarter, when the company had $26 million in sales.
The company, which makes audio and image storage products, said several of its customers cut back on orders.
While revenue from products fell, the company anticipates that revenue from licensing and royalty agreements will result in an increase in earnings and operating income, Chief Financial Officer Cindy Burgdorf said.
The company also said it signed a cross-licensing agreement for flash memory-related patents with Sharp Corp. Such products are used in digital cameras. The company also has agreements with Seagate Technology, Matsushita Electronic Corp. and LG Semicon.
Gross margins on products are expected to be lower in the fourth quarter, compared to the previous period, the company said.
Shares in the Sunnyvale-based company fell 75 cents to close at $11.25 on Nasdaq.