SAN FRANCISCOCiting a goodwill write down of more than $1 billion, SanDisk Corp. Monday (Feb. 2). posted a net loss in accordance with generally accepted accounting principles (GAAP) of $1.86 billion, or $8.25 per share, on revenue of $864 million for the fourth quarter of 2008.
SanDisk (Milpitas, Calif.) said it incurred a combined pre-tax goodwill and intangible asset impairment charge of $1.02 billion, due to a sustained decline in the company's market capitalization and other factors.
Revenue for the quarter increased 5 percent over the prior quarter, but was down 31 percent when compared with the year-ago quarter, SanDisk said. The net loss for the quarter compares to a GAAP net income of $106 million, or 45 cents per share, posted in the fourth quarter of fiscal 2007.
For the year, SanDisk reported a GAAP net loss for fiscal 2008 of $2.07 billion, or $9.19 per share. The company had posted a new income of $219 million, or 93 cents per share, in fiscal 2007.
Total revenue for fiscal 2008 was $3.35 billion, down 14 percent from $3.90 billion in fiscal 2007, SanDisk said.
Eli Harari, SanDisk chairman and CEO, said the company was happy to achieve sequentially revenue growth in the fourth quarter, but disappointed with its bottom line results. "We are taking significant steps to curtail our captive output, conserve cash and reduce capital and operating expenditures," he said.
Harari said the drastic capital expenditure cuts announced by memory chip vendors for 2009 are likely to contribute to a better balance between supply and demand and an improved pricing environment in the company's markets later in 2009 and into 2010.