As difficulty in supply is rising, chipmaker SanDisk Corp has predicted that revenue for the current quarter will be below analyst estimates.
SanDisk also reported revenue for the third quarter to be lower than expected, which caused its shares to decrease by 5 percent.
However, this has played a role in the forecast of Sandisk of lower revenue as by the end of the third quarter, which was Sept. 28, the company’s expenses climbed to 25 percent from the quarter before as it was derived from costs of acquisition and restructuring of the company. The GAAP net income, as a further result, decreased by 5 percent to 262.7 million or $1.09 per share.
Analysts were taken aback because of the fact that Apple’s launch of its next gen iPhones was very strong and the latest acquisition of SanDisk should have resulted in a positive trend for the company’s revenue forecast.
In the end, $85.31 was the closing stock price of the company on the Nasdaq on Thursday. Up to the closing of Thursday, a 21 percent increase in stocks was visible this year.