SanDisk Corp. (Nasdaq: SNDK) jumped 27 percent Thursday after the company reported strong fourth quarter results and a 2-for-1 stock split. The maker of flash memory data storage products also got an upgrade.
The company reported earnings of 30 cents a share, beating First Call's estimate of 22 cents a share. Sandisk shares were up 26 7/64 to 122 55/64 Thursday after Robertson Stephens upgraded the stock to "strong buy" from "buy." The stock has been spiking since November, when it also got a thumbs up from an anayst.
Net income for the quarter was $10 million, up 54 percent from $6.5 million in the third quarter of 1999. Diluted earnings per share was 30 cents a share, up 43 percent from the 21 cents a share reported in the third quarter of 1999.
Fourth quarter revenue was $82.8 million, an increase of 23 percent from the third quarter of 1999 due to increased sales of CompactFlash products and higher revenues from licenses and royalties, the company said.
Revenue for fiscal 1999 were $247 million, an increase of 82 percent from $135.8 million for the previous year due to higher product sales and higher revenues from licenses and royalties.
Sandisk said Wednesday its board has approved a 2-for-1 split of the company's common stock. The dividend will be paid on Feb. 22 to each stockholder of record at the close of business on Feb. 8.
The company said it was optimistic about strong growth in our sales and profits in fiscal 2000.