U.S. flash memory maker suffers after tightening supplySanDisk, a maker of flash memory for mobile devices, gave sales forecasts for the first quarter and 2013 that fell short of analysts’ estimates as it limits supply to avoid an industry glut.
Revenue in the current period will be $1.23 billion to $1.3 billion, the company said on a conference call. That’s less than the average analyst projection of $1.37 billion, according to data compiled by Bloomberg. For the year, sales will be $5.3 billion to $5.6 billion, while analysts on average had estimated revenue of $6 billion.
CEO Sanjay Mehrotra said he’s willing to risk limiting sales growth this year by increasing his company’s output at a slower pace than the rest of the industry. SanDisk hasn’t yet decided if or when it will add new production, he said. Memory-industry profits have been hurt or wiped out in the past when companies have produced more chips than their customers needed. Bloomberg
Mouse maker Logitech sheds businesses to curtail losses
Logitech International, the world’s biggest maker of computer mice, started selling its remote-control and video security businesses after posting a third-quarter loss of $195 million.
“These results are unacceptable and we are taking decisive action as an outcome of my strategic review,” CEO Bracken P. Darrell said in the earnings statement. The company was forecast to report net income of $50.3 million, according to the average of seven analysts surveyed by Bloomberg before yesterday’s statement on the impairment. Logitech had a third-quarter profit of $55 million in the previous fiscal year.
As PC sales suffer and demand for mouse-less tablets has risen, Logitech has adjusted its range of devices, which now include wireless solar keyboards for Apple’s Mac, iPad and iPhone.